Economic and Social Chaos Drive Assets Out of USA

Economic and Social Problems in the USA Intensify Interest in Offshore Trusts and Private Placement Life Insurance (PPLI)

BOULDER, COLORADO, USA, November 13, 2023 /EINPresswire.com/ -- Economic, social, and political problems in the United States have become increasingly diverse and complex. They include the burgeoning government debt, the moral and economic toll of foreign wars, the sustainability of unfunded entitlement programs, abandonment of social and religious values, rising crime rates, the nonsensical woke agenda, the decline in the quality of public education, and the loss of the US manufacturing base. As a result, more individuals and families are exploring unique financial and estate planning tools, namely, international asset protection trusts coupled with private placement life insurance (PPLI), as a means of achieving asset protection, portfolio diversification, and financial stability amid uncertainty, deterioration and chaos in the US (and other “Western” societies).

One of the foremost concerns among Americans is the ever-mounting government debt. The national debt has soared to $33+ trillion , driven by government spending, economic bailout packages, and efforts to address the consequences of the COVID-19 pandemic. Citizens worry the colossal debt burden will lead to further inflation, economic instability, and devaluation of the US dollar.

The human and financial toll of overseas US military engagements and foreign policy meddling fuels apprehensions about the long-term impact on the economy. Unfunded liabilities, for example, for entitlement programs such as Social Security and Medicare, exacerbate long-term concerns.

Beyond economic concerns is the anxiety about the disintegration of social and religious values. Deteriorating moral and cultural norms, eroding family structures, and the subversion of traditional values have left US and Western societies adrift. Rampant “smash-and-grab” looting by large groups of young urban dwellers and the persistent frequency of mass shootings are a source of stress about societal values, personal safety and the (in)effectiveness of law enforcement.

The quality of public education in the US compared to other countries globally continues on its seemingly inexorable downward trend. Simultaneously, the loss of the US manufacturing base has generated apprehension about the nation's economic resilience. The outsourcing of manufacturing jobs to other countries has raised questions about the sustainability of the domestic economy and the long-term availability of well-paying, blue-collar jobs.

In response to these multifaceted concerns, many individuals and families are exploring innovative financial strategies to safeguard their assets and achieve stability. One such approach involves the use of international asset protection trusts in conjunction with private placement life insurance.
An international asset protection trust is a structure established in a selected jurisdiction outside the United States that provides a strong degree of protection against creditors and legal claims. By placing assets into such a trust, individuals shield their wealth from potential social, economic and legal uncertainties in their home country.

Private placement life insurance (PPLI) is a specialized form of life insurance that offers investment options beyond the traditional offerings of typical life insurance policies. Offshore PPLI policies can be tailored for moderately wealthy individuals and families, providing them with opportunities for tax-efficient investment growth within the policy. Segregated accounts within a PPLI policy allow policyholders to have their investments allocated across various asset classes, providing a level of portfolio diversification that can mitigate risks associated with economic downturns or market volatility.

The combination of an international asset protection trust and PPLI offers a comprehensive strategy for individuals seeking financial stability and security amid the uncertainties in the US and other Western societies. Here's how these components work together:

1. Asset Protection: The international asset protection trust, IAPT, serves as a legal barrier against potential creditors and legal claims. By placing assets into this trust, individuals create a protective shield around their wealth, reducing vulnerability to economic and legal challenges in their home country.

2. Tax-Efficient Growth: Offshore PPLI policies, designed for moderately individuals (not just high-net-worth, offer tax advantages that can enhance the overall growth of investments within the policy. This tax efficiency can contribute to the preservation and accumulation of wealth over time.

3. Portfolio Diversification: Segregated accounts within a PPLI policy allow individuals to diversify their investments across various asset classes, including equities, fixed income, and alternative investments. This diversification helps spread risk and can be especially valuable during periods of economic volatility.

4. Financial Privacy: Establishing financial structures in jurisdictions with robust privacy laws can provide individuals with an added layer of confidentiality. This can be appealing to those who value financial privacy and wish to keep their affairs discreet.

5. Estate Planning Benefits: An IAPT holding a PPLI policy facilitates efficient estate planning, allowing for tax-free wealth building and seamless, tax-free transfer of wealth to future generations. This can be crucial for individuals concerned about preserving their legacy and providing for their heirs while still benefiting from the offshore assets.

While this financial strategy offers potential benefits, it is essential to approach it with caution and seek advice from legal and financial professionals well-versed in international asset protection and tax planning.

Thomas Swenson, JD
Law Office of Thomas J Swenson
+1 303-440-7800
tswenson@swenlaw.com
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