Archive April 26, 2019

China selects offshore structures to protect assets

More recently, the marriage in China, as a rule, was for life. However, before marriage for a Chinese woman was not always prosperous and pleasant. In accordance with tradition, by entering into marriage, women had to give up their rights, and completely submit to their husband and his family. All their lives, women served their husbands and their families, and divorce for women in China was considered a disgrace. If even some of the women managed to get divorced safely, they were called the old shoe (po xie). Second marriages were very unlikely and rare, but even if they were concluded, this did not mean that they were trouble-free, but rather even as problematic as they were to remain a loner. Being divorced was a shame not only for the woman herself but also for her parents. If the parents refused to accept the daughter back to the family, then she was doomed to survive in a society that unequivocally considered the woman as an inferior person.

Before the founding of the People’s Republic of China in 1949, men were the main labor force. Although already in the 1900s, the previous government took the first steps in the struggle for women’s rights. Mao Zedong was the one who began systematically forcing equality between the sexes, in the hope that this would help China become a world power. The first civil marriage in China was adopted in 1950. In order to achieve equality between men and women, it was necessary to take very bold steps, such as introducing a ban on the sale of the bride, organizing marriages, child engagement, concubines and legalizing divorce.

Despite the fact that both women and men had the right to file for divorce in order to invalidate a marriage, divorce was possible only in case of “mediation and counseling” failures, and the couple needed official permission from their employer or district committee before considering a divorce. In 1985, when the mechanism for the development of economic reforms in China was established and began to function smoothly, divorces were still a relatively rare event.

Since then, China’s accelerated economic growth has been accompanied by growing pressure to achieve financial success for the country, which is directly associated with an increase in the number of divorces. Between 1985 and 2009, the number of divorces in China increased by four, from 0.4 to 1.85 per 1,000 people.

Despite the fact that there were certain factors that contributed to the increase in the number of divorces, the amendment to the marriage law in 2003 was central. Formal permission from employers or district committees that were previously necessary for a divorce was canceled, and the procedure itself was greatly simplified, allowing people to obtain divorce certificates in an easier way. According to a report published by the Ministry of Civil Affairs in early 2011, starting in 2003, the number of divorces in China has increased by an average of 7.65% per year. And this trend seems to be only gaining growth.

According to a report published on May 5, 2011 in the daily newspaper, which is the best-selling in Chinese, the Beijing Times, during the first three months of 2011 compared to the same period in 2010, there was an increase in the number of couples who officially informed the state about his intention to cancel the marriage by 17%.

Statistics may be especially relevant for Pekingans, who lead this trend. From 2004 to 2010, according to government data, the number of divorces in the city was almost two times higher than in other cities of the country. Data for 2009 showed that by the number of divorces, Shanghai was practically “on the tail” of the capital, reaching 38%, compared to 39% in Beijing. Shenzhen and Guangzhou were far behind, reaching 36% and 35%.

If you try to discern the cause of the growth of divorces, the statistics indicate pressure due to the accelerated pace of life in large commercial centers in China. The sharp rise in housing prices and the difficulties faced by working career-oriented mothers. Many of them are forced to raise children in foreign cities, without ties and support of their families, which can also provoke stress, which leads to the destruction of marriage.

The fact that the Chinese generation, often called the “post-80s,” which has only one single child, began to marry only in the early 2000s, is perhaps the most frequently mentioned reason for the increase in the percentage of divorces. Selfishness, immaturity and materialism are among the characteristics associated with the generation of the “post-80s.” They grew up in a family where parents had only one child and loved him endlessly. As a rule, in addition to parents, there were two sets of grandparents, which were summed up with close parental attention.

Statistics of the Beijing District Court confirms the arguments associated with this era of parenting. The number of divorces, in accordance with the data published by the court in 2009, among young men to 30 years has doubled, compared with the previous year. 97% percent of couples under the age of 30 were the only children in the family. Today, in order for a man to be considered ready for marriage, society requires him to possess a certain wealth, but it is this attitude that creates marriages based on the mercantile approach.

More and more people in China admit the possibility of divorce, while they are preparing for this worst event, as the best way out of the situation. Divorce – and its emotional and financial consequences – this is something that the newlyweds do not think about on the wedding day, however, wealthy individuals who can lose millions should take precautions. No matter how undesirable or unexpected future events may become.

Perhaps it is an offshore investment that is the most effective way to protect assets in unforeseen circumstances, even though divorce is only one of many possible events, possession of offshore assets, as a rule, protects against the entire spectrum of threats. There are various ways in which offshore structures can be used to protect assets, and the choice of method usually depends on the specific needs of a well-off person, as well as on the distribution of onshore assets.

Offshore asset protection

Offshore companies, offshore funds, offshore trusts and a diversified combination of assets of a wealthy person are all viable methods of protecting clients’ assets in China.

All offshore financial products protect assets to some extent, but when wealthy Chinese spouses specifically seek to protect their assets from divorce, offshore trusts are considered the most favorable. In the case of a trust, there is absolutely no risk of transferring assets during a divorce, because – by their nature – the assets are not legally owned by either spouse.

In China, despite all the scandals and the threat of transparency, the jurisdiction of the British Virgin Islands is a priority when choosing an offshore jurisdiction due to its attractive tax rates, as well as the ease and cost-effectiveness of the services offered.

Chinese customers who plan to emigrate to another country fall into another category. They do not choose offshore financial centers based on their convenience and cost. Offshore trusts and other products, as well as onshore operations, such as investment in property, are often key aspects in the procedure for emigration to other countries.

The next step, after a clear definition of client assets, is deciding which offshore jurisdiction is best for the client — this process is especially important if the goal is to protect the assets during a divorce.

Usually, lawyers in China recommend that their clients categorize their assets before marriage, such as real estate, cash, stocks, and shares in a company. After that, they develop an appropriate asset management structure.

Regarding the type of assets that can be redirected to offshore jurisdiction, China believes that antiques, real estate, and securities should remain in onshore, and funds and shares can be invested in offshore. ” Except when real estate and securities can be cashed and then invested in offshore. Chinese lawyers also advise couples to sign a marriage contract in which the personal property of the spouses should be mentioned and defined before marriage. Next, the couple must agree in advance on how the property will be divided after marriage.

No matter how logical these proposals may sound, the marriage contract is still rare in China. Chinese customers have not yet accepted the concept of a marriage contract. This is due to a number of complex reasons that are beyond the legal nature. For example, emotions and personal trust.

The well-being of a certain person in China is usually associated with the fate of the whole family – either because offspring will expect their parents to support them financially in old age, or because young couples rely on their parents before becoming financially independent. Family members play a large role in managing and determining how assets are divided into marriage. Promising husbands are those who acquired real estate before marriage. Then they will be considered “suitable” from the point of view of the bride’s parents, especially if the parents are wealthy.

Such principles are especially characteristic of parents whose offspring is known as the “second generation”. Although they were also born in the eighties, this “generation” is different from the posterity of the “post-80s” known for its egoism. But these two groups are not mutually exclusive.

The “second generation” appeared in wealthy families who began to “make money” at the beginning of China’s economic reform and in the following years increased their wealth in different sizes. Having only one child, the parents feared such a possible threat as a divorce for their son or daughter.

If adequate legal measures are not taken prior to the marriage, or the marriage contract is not signed, which can equally protect both spouses, there is a risk that the family may lose most of its welfare.

Owing to the increase in divorces in China, today families who belong to the “second generation” of highly wealthy individuals and their parents think more about protecting their assets than in the past.

Some of these people took 30 years of Chinese reform and open policy to make their fortune. A sufficiently large number of representatives of the “wealthy second” and even the “wealthy third” generations appeared under such circumstances. Many countries have gone through a long period of development, but China is unique in this sense.

China differs from other countries in that, in addition to all reforms, China also has a family planning policy, which means that today many wealthy individuals are the only successors in the family.

It does not matter how big the family condition of the bride or groom is, Chinese society is not ready for marriage contracts. If someone in a pair offers to sign a marriage contract, then immediately there are conflicts and suspicions that can lead to the termination of the marriage even before it starts. Offshore asset protection is an alternative that high-income individuals in China are increasingly resorting to in order to protect their assets before marriage.

Due to the increase in the number of divorces in China, private high-income individuals are forced to look for ways to protect not only the welfare of their family but also the feelings of the future spouse.

But, despite the fact that in China, the majority of highly wealthy individuals are men who are trying to protect their assets from divorce, using offshore structures, this does not mean that everything goes according to the same scenario, when a young wife digs gold in a garden from an elderly husband Lawyers in China today advise women clients on the allocation and protection of assets in case of divorce. And women in these matters can go very far.

For example, such a situation for China is almost classic: “The client is a woman who owned assets in the total amount of RMB 100 mil. including movable property, stocks, funds, etc. She filed for divorce, a year after the wedding, accusing her husband of treason. Before marriage, she became pregnant and opened a trust in New Zealand. And the beneficiary of the trust appointed her child. “

If both spouses in China disagree by joint mutual agreement, the fact that they had previously planned everything in case of divorce allows the process to proceed smoothly and honestly towards both spouses. One lawyer in China told the following:

“My client was an investor. At that time, he owned 1 billion yuan in assets. The marriage lasted 15 years, and at the time of the divorce, his wife ran another company. They had two children, a son and a daughter, who studied abroad. The couple filed for divorce because of misunderstanding. As a result, they divorced in accordance with the contract: the husband received custody of his son, and his wife received custody of his daughter. Their joint cash, securities, and assets were divided equally. Foreign investments belonged to the husband, but the husband agreed to pay the full support of the children until their son and daughter turned 18 years old. In addition to these assets, the couple created separate offshore trusts [in the British Virgin Islands] for old age. And they also set up trust funds [in the British Virgin Islands] for their children. ”

Both legal cases show the true value of offshore asset protection and pre-planning of the future. They also argue that the more a person knows about the offshore and onshore services available to him, the more likely it is that everything will go exactly as it should in the case of a situation like a divorce.

How to escape from the seven “mortal” dangers and threats to your family, and how to protect assets?

Please do not think that I want to scare you on New Year’s Eve and destroy a good mood, not at all. On the contrary, I want you to have time to prepare and enter the New Year in a relaxed mood.

Have you ever felt like a puppet, a pawn or even a slave in the helpless and incompetent hands of a bankrupt or ineffective government? If not, then, most likely, you are already prepared and you have a second passport, an account in a foreign bank, real estate abroad and you use a protected computer and Cryptohippie or analogs. Your business has already been developed into an effective and successful country with territorial taxation, and the legacy you want to pass on to your descendants is already protected through a trust or foundation.

If you have already taken at least some of the measures listed above, you only understand that, in principle, any government in any country in the world is ready to confiscate the contents of your retirement accounts, increase taxes to the level of the slave trade, and even take your gold and diamonds.

The only question is, are you ready to act to prevent the possibility of your government’s actions personally regarding you and your family members … or the authorities will succeed simply because you didn’t imagine that this could happen “Here and with you”. Back in early 2013, people believed that such a thing as Cyprus cutting of deposits in the EU is absolutely not possible.

The saddest thing is that the “moment X” does not even particularly depend on you, nor on the government of your country. The troubles that can force, in general, even the not so bad government of your country to go to extreme measures today come from the United States.

The bankrupt US government with its actions and acts of law-making like FATCA only bring its collapse closer. Currently in the USA:

  1. Agencies that regulate law enforcement and whose leaders are appointed rather than elected have the power to freeze an account or even steal money from your bank account without a warrant.
  2. The US Tax Service literally hires an entire army of Agents who are threatened with dismissal if they do not find tax crimes. You think they will want to return to work after studying your bookkeeping with empty hands
  3. The government and banks are making it increasingly difficult to carry out international transactions, the use of cash, the possession of gold.

I am an optimist and I want you to see the world in iridescent colors, and not in black light. To continue to look at the world in a mode of optimism, you just need to spread straws from the beginning in case of a worse scenario.

Your government does not work for you (unless you have already moved to Singapore or Scandinavia). International agencies and associations, such as the EU, the UN, the OECD, are in fact aimed at limiting your freedom and the amount of cash.

Remember what Merkel said during the Cyprus problems – “Let them eat their cake!” The European Union is trying to cover up other centers of offshore banking in Europe. They motivate their attempts to bring to the life of the residents of the EU countries financial stability, and in fact, they are AFRAID of offshore financial centers, since their existence does not allow them to control virtually every penny you own.

At the same time, bureaucrats in the United States are pushing an increasing number of bills that will allow monitoring the citizens of this country, and all other governments are looking to see if the United States will succeed and at what stage people will actually begin to object. Congress pushes bills to make GPS controlled by almost any technical device. That is, even your car will independently report on your movements to an uncountable number of bureaucrats.

As far back as the average American last year, it would have been unthinkable to imagine that a US intelligence officer would tell the US population a “secret” that the government was spying on them, and then he would run to seek asylum in China and Russia.

Historically, the governments of the world have always reacted to problems by taking away the savings of their citizens and severely restricting their freedom. The situation with the United States is dangerous because both the residents of this country and many foreigners believe that this is the best country on earth. That is the near future nothing will happen to her. What a foolish thing to consider the debts of the United States without first counting the assets and resources that the United States has. I will be very happy if everything is XA-RA-SHO. But from the fact that I will be prepared, I will not become worse anyway.

But when I see the US $ 17 trillion in debt to China, a country that participates in wars that it cannot win, I see a country that is now bankrupt its inhabitants, printing more and more US dollars. And this already threatens the reserve status of this currency and will necessarily affect all other unsupported “paper” currencies of the world.

Therefore, it is better to prepare than to complain later about your laziness and inertia.

If you have been reading our blog for a long time, then you know that the chief editor and author of this article is an eternal tourist, international entrepreneur and citizen of the world – Alexander Listerman. Once, I had a fairly successful IT business, but the more it developed, the more time was spent on reporting, taxes, and so on. By selling the business, I paid more taxes … and these were the last taxes I paid.

Since then, I have found many ways to live and work legally creatively, without paying taxes. It takes less than a minute to issue an invoice, the payment comes to the account of a classic offshore company, possessing not only EU citizenship, but also second Caribbean citizenship, I constantly travel for work, and in any case, I will never become a resident of the country without a close to zero personal income rate or without territorial taxation.

In order to have a good blog, I sometimes do the strangest things. For example, I take a plane at the last minute to meet the right people on the other side of the world. I subscribe to expensive editions and buy books and “reports”, which sometimes cost more than $ 1,000. Buy a book with delivery for 100 or more dollars, if only it is about offshore, trusts, immigration, opportunities to gain freedom in our controlled world for me the norm.

The company in which I currently work and which actually owns the portal of the Buendía family spends hundreds of thousands of US dollars on establishing real international relations, attending conferences for representative purposes and for the sake of training.

As a result, we not only know the “secrets” but also know where and how you can get the necessary services guaranteed. To perform the most necessary services we get direct licenses. These secrets and secrets are not accessible to the masses. Not only the government, but even your boss (if you still have one) will not be delighted with your knowledge of a free life in a tax-free mode and the possibilities to build a business offshore and from scratch with initial capital, well, for example, at $ 5,000.

However, we are completely free to tell you how to make money on your own terms, start a business anywhere in the world, save your money (and not give it to the Government so that they have more funds and opportunities to take more from you), declare their independence in life in work in the country of residence and stay.

Living in the rhythm of an eternal tourist (and with my family and a small child), I can share my practical experience with you. I assure you that with the development of freelancing and online business, an increasing number of people will live in the style of perpetual tourism. This, by the way, can be done even without leaving home.

For business, I constantly meet and communicate with experts and professionals who treat me with various “predictions”. It is frightening that the same predictions are repeated. Fortunately, they and the experts, together with the warning about the problem, tell about possible solutions.

Prediction and Threat 1: Uncontrolled inflation and massive losses in the stock and securities market

What we saw in 2008 – 2009 was not a disaster, just a slight push before a real earthquake. We hear it from a variety of sources, including one of the most successful TV commentators in the US (in the field of investment), and best-selling author, in which he has already predicted the greatest economic collapse of modernity, Peter Shift. The readers of the Portue family are better known as the owner of the bank, in which many of our clients have already opened accounts.

Prediction and Threat 2: Mass Confiscations of Private Capital and Private Assets

Most lawyers who specialize in international asset protection, especially those from Europe and the USA, believe that such a scenario cannot be avoided, as bankrupt governments are becoming more and more desperate. How to protect your retirement savings, investments and capital earned for a lifetime, no one except you can take care of.

And it does not matter that we need to protect $ 25,000 or $ 25,000,000 million, we will select a strategy and a solution. You just need to ask for advice.

Prediction and Threat 3: You will live to see the day when the US dollar ceases to matter in the global economy

There are professionals who have been calling for more than 20 years for NOT saving money in paper currency. Including, it is also experienced professionals who predicted the growth of the physical gold market long before its rise.

And of course, it will be possible to earn great money on this fall in the dollar.

Prediction number 4: Cryptocurrencies such as Bitcoin will play a huge role in the new economy. Those who begin to seriously use the cryptocurrency in the early stages will become rich.

The emergence of second-generation cryptocurrencies – electronic, anonymous, has already made early followers millionaires, and the attacks of world governments in the press served as the best advertisement. Only experts will tell you how to use Bitcoin to legally protect your transactions. By the way, in our company, we accept payment by bitcoins.

Awful prediction number 5: Your Western Passport Could Become a Noose on Your Neck

US citizens must already file reports in the US and pay income taxes in the US simply because they are US citizens. The US government is not at all interested in where they live and work. Together with US citizenship in the era of FATCA, these people received reduced access to financial wounds and inability to invest in foreign enterprises. Americans also receive massive refusals in a number of countries around the world to open a foreign bank account for them.

Before renewing the passport of a US citizen, the government decides every time whether to renew a passport or not. Does the potential recipient of the document have tax disputes? Are there any arrears in the payment of alimony? Did this person commit drug-related crimes? Do not pay child support for at least 1 month and you will not renew your passport and you cannot even leave the USA.

Experts believe that extending the US passport every year will become increasingly difficult, and the EU may follow the example of the United States and tax citizens on the principle of citizenship rather than residency. That is why it is so important to have a second passport in advance.

On the portal of the Buendía family, we constantly write about how to get insurance in the form of second citizenship and protect ourselves from too high taxes and confiscation of capital. Unfortunately, the Internet has a lot of outdated information and even more scammers who want to buy freedom cheaper. Only professionals will tell you how to get the maximum benefit from the second citizenship even without giving up the first one.

Prediction number 6: “Privacy” will sink into oblivion while spying on the population by governments will become the norm.

Snowden’s revelations that the government is spying on EVERY phone call and EVERY email, have shocked US citizens. But before that, at the most diverse sources, they were repeatedly warned for decades before Snowden. The US government will not stop and stop spying, and most likely will do everything to legalize it.

Unfortunately, in the field of data protection and online correspondence, there are many “fake” services. We regularly write only about proven services, in such articles as:

How to use webmail for the secure transmission of e-mail?

Are you ready to start controlling the privacy of your e-mail right now?

Which Offshore to choose for the deployment of your server?

Put an iron curtain on your Internet communication!

If you have ever used a computer for business purposes, then you must think about security!

How secure is our personal online information?

How to technically make your life and online business as private and confidential as possible?

In other words, only the constant monitoring of this issue will help you conduct global business in the online mode of invisibility, and on completely legal grounds.

Prediction number 7: In the “Post-Obama” economy, it will be increasingly difficult to find a regular job, while jobs that can be done regardless of your location will flourish.

I will say from my own experience, of course, in the modern world of online competition and without a large initial capital, the first two or three years will need to work hard and hard. But then, you will be able to arrive at 4 pm long working day. A greater number of layoffs, lower salaries, fewer posts – will become the norm in the corporate culture of Europe and the United States. There are experts who claim that you can grow to hundreds of thousands of income from almost zero within two years. I will say right away, among our clients, we see such examples regularly.