Regulated Asset Protection Structure

Regulated Asset Protection StructureOccupational retirement plan law is asset protection that you can trust. The 402b overseas retirement plan, USD Exempt Entity is the Key to Tax-Deferred Investing and Regulated Asset Protection.

Global Intermediary Identification Number (GIIN):

Many countries have laws imposing secrecy on information about retirement plans. If you stop to think about this, under FATCA, obtaining a GIIN registration essentially means, “Give us what you’ve got.” You agreed to do that by obtaining a GIIN. If you are in the category domestically that has a law that says you can’t do that, then to obtain a GIIN would be a breach in law and to do so would mean you agreed to break the law.

By their very nature, retirement plans are viewed and governed differently. There are sanctions on dealing with retirement plan information that only a regulator can decide on. There are so many organizations with powers of search and seizure these days that might otherwise demand access to sensitive information. Preventing this is important because retirement plans are proprietary.

This retirement law offers sustainable asset protection and tax deferral on gains and accumulations is recognized by governments and in governance.

Brought to you by FATCAWhen people are looking at the whole area of law they are very focused on themselves and that is completely normal and understandable. This is what you want and this does that for you but that is not the important part.

The important part is, “where are you going to be in 10 years?” Pretending to predict the future is errant. But one of the big patterns, broadly speaking, it is clear that pension law is different and is given recognition.

Firstly, the endearing Double Tax Agreements which give you a very high degree of certainty under the law; it is not given to change frequently.

Second reason; retirement law in the European Union is under a directive that is 10 years old, in the U.S. nearly 40 years old and so it is not as if these are laws that change by fad.

There are certain patterns of retirement law that emerge continuously. Therefore, it is inept to say they could change retirement law retrospectively. They have never done that; it is just the tax stuff that has changed and the retirement law is still there.

In today’s unwaveringly turbulent economy, it is expected that those with valuable assets will go to extreme lengths to protect them, for their own benefit, and to bequeath them to their loved ones after their own usage.

It is obvious that wealth management and asset protection industries are growing. Experts suggest that financial stress has in fact boosted the respective industries, with increasing numbers of people committing to a host of strategies to safeguard their assets against outside risks.

In light of the asset protection boom, poorly equipped and nil experienced “advisors” have jumped on the “get rich quick” band wagon; pushing us in the direction of the latest asset protection solutions that promise to deliver our goals in one pervasive, appealing, and seemingly sound investment package.

A Trust, Spendthrift Trust, Grantor Trust, An Offshore Trust, Land Trust, Family Partnership, Foundation, Offshore Company, LLC, LTC and all Trusts, Partnerships, Foundations and Company’s leave your assets exposed to judges.

None of those attorney driven contracts have an IRS recognized and FATCA registered and authorized government-regulated administrator.

Often times, the advice provided by these consultants is dependent upon hiring an attorney to prepare battle with case law and to predict results rather than by pension law and Government Regulator, IRS Tax Code and Asset Protection law combined which achieve statutory asset protection and tax deferred accumulation objectives globally.

Foreign unrestricted investment choice is never available through a domestic or foreign trust

The selling continues for offshore trusts, which are used to safeguard a sizable and diverse range of assets for a number of individual and business related reasons. This is reliable only to avoid probate, act as your last will and testament, secure your inheritance, protect your estate, enjoy personal tax benefits but only if you renounce your legal ownership and usage of the assets.

One of the most common trust structures to create is an irrevocable trust. This structure offers complete protection against creditor claims through renouncing your legal ownership of the trust property: the nominated trustee will then resume fiduciary duty over the assets.

Irrevocable trust is a harsh decision once made that cannot be changed

Giving up what is rightfully yours to use is an extremely harsh way to have an asset protection result.

High net worth individuals who seek a bullet proof structure that will ensure creditors, courts, divorce, and tax challenges will have no standing against their assets.

This retirement plan law does not suffer the draw downs of Trusts:

  • Trust law provides asset protection that is exposed to Judges
  • Trusts are hard to create
  • Trusts are trying to predict and control the future

Can you imagine what your family will be like in 50 years? Can you imagine what life, the economy, and the world will be like in 50 years? Now think of writing a document that is designed to send a time capsule containing a fortune 30 or 50 years into the future.

U.S. Tax System is Hostile to Trusts

The U.S. tax system is generally hostile to foreign trusts if there is a U.S. taxpayer involved. The hostility is understandable–trusts interfere with the government’s ability to impose or collect tax. As a result, the laws are slanted against foreign trusts. Income is taxed punitively. The right paperwork must be prepared “just so” and filed on time, or massive penalties can result.

Trusts have complex financial accounting

Distributions to beneficiaries require the trustee to keep complex financial accounting records that satisfy U.S. tax requirements, even if under local laws the record keeping and accounting is unnecessary.

Trust distributions can create huge tax bills

U.S. beneficiaries may pay gigantic U.S. income tax bills when they receive distributions. And the government doesn’t even have a proper U.S. income tax return for a foreign trust–we have to use Form 1040NR, the tax return for a nonresident individual.

Trusts have complicated and expensive tax reporting

The U.S. owner of:

  • A trust needs to file 3520 each year, and 3520A each time there is a contribution/distribution.
  • A foreign corporation or partnership with >10% American control must file form 5471 (taxed as corporation), 8865 (taxed as partnership), or 8868 (taxed as disregarded entity) each year. She/he must also file form 926 whenever she/he contributes assets to the entity in return for shareholding/ownership share.

Tax consultants make a decision with respect to Passive Foreign Investment Company (PFIC) that might be considered trusts that if the owner is <1% of the total owners and can wind up or add to the investment at any time that it should be treated as a “PFIC” not a trust.

Both might contain or the taxpayer may own outright

  • A “PFIC” (most passive-income earning assets (even if they do not produce income), except stocks, bonds, bank accounts, simple life time annuities), and requires form 8621 each year
  • A reportable bank account, securities account, insurance account or mixed fund (i.e., “PFIC”) account is reportable on the FinCen 114

All of these are reportable either directly or indirectly (i.e., a CFC filed on Form 5471) on Form 8938 if the taxpayer otherwise exceeds the thresholds bearing in mind that assets held jointly with a non-specified person (i.e., NRA spouse) or unrelated person are considered at full value).

Key points:

This specific retirement plan law structure is exempt from IRS Form 3520/A filing, is not a PFIC and is deferred on reporting FinCen 114 and deferred on income reporting on IRS Form 8938 and it provides eight additional considerations:

  1. Distributions become taxable only upon withdrawal.
  2. IRS tax reporting transparency: deferred income can be structured so that IRS Form 8938 is deferred income reporting.
  3. An IRS code income tax deferred foreign government regulated and recognized retirement plan administrator and by law recognized internationally as tax deferred.
  4. Protected by U.S. and foreign government statutory law from claims, counter-claims, new parties joined, summons, discovery, depositions, interrogatories, court judgments, lawsuits, bankruptcy and tax liens.
  5. Registered privacy and secrecy with a FATCA authorized exempt from reporting by filing W-8BEN-E box 29e .
  6. All types of assets can be asset protected.
  7. Global investment selections without U.S. person restrictions or blockage.
  8. Government regulated, registered and IRS Code and FATCA identification number fiduciary authorized to sign W-8 BEN-E box 29e

Investment choice is a priority of this retirement plan

For those of us who expect to chose their own investments, want utmost privacy, tax benefits and a recognized by governance structure that will deny creditors claim on hard earned assets, this Government Regulated Retirement Plan Law unsurprisingly prevails.

The corporate legal framework is supported by government regulator, registered and recognized by governance and provides asset protection and tax deferral that is an IRS Tax Code mechanism since 1986. It therefore begs the questions why so many of us have our heads turned by the latest trust concept on the market; after all, those trusts are tantamount to openly gambling while using only the perception of protection.

Of course, the successful protection of one’s assets through plans without a regulated, registered foreign retirement plan structure may also be dependent upon the individual’s domiciliation, net worth and type of assets involved. Although there are many Trust or Business tools on the market claiming to offer protection for your estate, trusting a “Trust or Business Solution” may not be a gamble worth taking.

When registering your retirement plan assets in a foreign jurisdiction and utilizing a plan administrator that has a FATCA Identification number, is explicitly a retirement fund as exempt beneficial owner and is also an administrators of a government regulated retirement fund ensures your account is FATCA compliant and also this 402(b) and domestic integrated retirement plan law that is protected against creditors, bankruptcy, court appearances and other challenges.

The present day unstable economy has forced many of us to recognize that bankruptcy-once a somewhat preventable and discrete affair-could be “on the horizon” if effective asset protection strategies are not utilized to safeguard our property.

It is evident that a multinational integrated statutory retirement law corporate framework is best-it does not need to be tested in the courts to prevail against bankruptcy and creditor cases while it also provides tax preferred solutions and investment choice both U.S. and foreign.


While this IRS recognized and FATCA registered foreign retirement plan has been available since 1986, it has only recently gained prominence due to globalization of the economy and workforce, transparency in reporting and recognition of the tax protection provided in Double Tax Agreement, Tax Information Exchange Agreement and the Foreign Account Tax Compliance Act. Some of the key functions include:

  1. This Recognized and Registered Foreign Retirement Plan has statutory legal asset protection that is not subject to claims, counter-claims, new parties joined, summons, discovery, depositions, interrogatories and judgements.
  2. This 402(b) protects assets, wherever they may be held, from any claim in the U.S. or in European and Asian jurisdictions; as assets are not “vested” with the individual so long as they are held in the Retirement Plan, they cannot be attached legally.
  3. Since this 402(b) has government regulated legal statute, the administrator cannot be forced to recognize, reveal nor release assets based upon claims or judgements. The retirement plan regulator will not release any information about the assets in the plan nor the names of plan members to support any claim against a member not having been criminally prosecuted; an administrator of this Foreign Retirement Plan cannot be sued nor called to judgement because there is no domestic court which will take receipt of a law suit against this Government Agency performing his fiduciary duties as regulated by that Government’s Law. Domestic law rules because no DTA defines, mentions nor addresses the treatment of claims or judgements against retirement plan members.
  4. This regulated, registered foreign retirement plan (402(b)) and its assets are specifically excluded from being qualified as a Passive Foreign Investment Company (PFIC); and its assets are recognized deferred on reporting.
  5. All AML disclosures and clearance takes place prior to becoming a member of the Retirement Plan; afterwards, it is the 402(b) that is the beneficial owner of any financial accounts (bank/brokerage) to protect the Foreign Financial Institution from any requirement for FATCA reporting.

Secrecy is only as good as you can allow it to be:

If a government goes around with an “in your face” response to a judicial inquiry then they undermine confidence and are suspected of not running a proper show. For example, a Cook Island Trust declares that they ignore creditors or that they provide asset protection by ignoring foreign court judgements. Other countries don’t take kindly to their declaration of being unique. A country is supposed to have laws that are recognized as proper by other countries.

Retirement Plan law is recognized as private and secret by all countries:

That is what FATCA is all about with the “Limited Conditional” category because the U.S. recognizes secrecy for occupational retirement plans. Banks and insurance company are not recognized. It is recognized in retirement plan secrecy law that people can’t be running around getting information just because they ask for it.

The U.S. Treasury formal determination that foreign retirement plans carry a low risk of tax evasion and also formal recognition of foreign secrecy laws therefore FATCA made an exception available to authorized occupational retirement plans that will not go away because in legal terms why would they need to as they have been determined to be exempt.


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