and Tax Aduanta

I6 T H E 0FFSHOA.E H O N E Y B O O Kyou will pay between $~o,ooo and $15,000. If your gut reaction tothe above numbers is alarm, then going offshore may not be economicallyfeasible for the size of your estate, or you have a falsesense of the value-added phenomena and the costs of going os thecorrect way. You are purchasing the expertise that goes into creatinga legal, tax-compliant, functional offshore structure. Besides,the U.S. dollar is still way down in value worldwide with respect tomost major world currencies and doesn't buy as much as it used to.Have you traveled to Europe lately? I use the "Snickers test," andsurprisingly, it works. When a candy bar sells for 50 cents at fullprice in the U.S. and for 69 cents in a supermarket in Basseterre, St.Kitts and Neris, the "RA cost of living index" tells me that food is38 percent more expensive on St. Kitts. Easy to do. U.S. candy barsare popular and for sale worldwide, even in Moscow.The os structure could be done in phases. It may not be necessaryto put it all in place the first year. This would defer some ofyour setup costs, but may subject you to some unnecessary risks.Staging is not generally recommended unless absolutely necessaryas a planned strategy, never because of implementation costs.Also, get a handle on the second-year costs, or subsequent years'costs. Your os consultant should be able to give you an estimate ofthese future costs within 10 percent.International Services and SetupThe U.S. is the most litigious society in the world, and it has spawnedan entirely new defensive industry-the so-called "asset protection"specialty.Numerous professionals and companies, onshore and offshore,are competing to set up your structures. Offshore operations are asource of both initial revenue and continuing revenue from ongoingannual fees. A word of caution is in order: Once company nomineesare put in place, it is extremely diffic'ult, when compared to the U.S.legal system, to replace them. Registered agents and nominees won'treadily relinquish their roles and future income-but if you persevere,they will eventually do so.