===================================
         THE SOVEREIGN SOCIETY OFFSHORE A-LETTER
Your Link to Freedom, Privacy & Prosperity in the Offshore World
       Thursday, September 29, 2005 - Vol. 7 No. 197
===================================
In This Issue:
* COMMENT: Estate Tax Plan: Don't Die Yet.
* OFFSHORE: Hong Kong Leads in Hdqts. Panama Fallacies. U.K. Ambassador.
* WEALTH: Canary in U.S. Bankers' Coal Mine. Swiss Cash Return Praised.
* PRIVACY & RIGHTS: Blair's Police State. And in America Too...
====================================

COMMENT: Estate Tax Plan: Don't Die Yet.

Dear A-Letter Reader:
The Wall Street Journal has some good advice for wealthy Americans;
keep breathing until at least New Year's Day 2006.

WSJ explains: "By doing that, you might save your heirs a fortune in
federal estate taxes. In some cases, the reward for surviving until the
start of 2006 could top $1 million."

The explanation for this unusual tax advice is to be found in the
current curious state of the federal estate tax and the manner in which
it is made to apply, based on the calendar, up until the year 2010.

The US federal estate tax exclusion will increase to $2 million next
year from $1.5 million for 2005. The top estate tax rate will fall to
46% next year from 47% this year. The annual gift tax exclusion rises
next year to $12,000 from $11,000, which allows more money to be moved
out of estates tax-free.

This is all part of gradual reduction of estate taxes enacted by the US
Congress several years ago, with a nasty reversion to much higher estate
taxes in 2010, unless Congress changes the law again, which it probably
will.

Congress was all set to repeal the estate tax this month - until
Hurricanes Katrina and Rita intervened. The politicians rightfully
concluded that it would look pretty bad to be giving a tax cut to the
most affluent 2% of Americans at a time when thousands of Americans
are displaced and suffering. Then too, there are the billions in deficit
spending Pres. Bush wants to throw at post-hurricane problems.

Of course, any wealthy American can arrange his or her affairs to avoid
the worst of these estate taxes. One way to reduce these death taxes
is to create an offshore asset protection trust (APT). The added bonus
the APT provides is exceedingly strong asset protection.

As we have said before, because the APT is located offshore, it
insulates against claims or creditors, since it's beyond the easy reach
of US courts. The most protective offshore jurisdictions don't recognize
US or other foreign court judgments and foreign creditors must start all
over with a lawsuit in the foreign court system.

I recently revised my special report on offshore trusts that explains
how they work, where the best trust places are and professionals you can
contact. If you're interested in an APT, click here for more information,
LINK: http://www.agora-inc.com/reports/190STRUD/W190F921/

That's the way it looks from here.
BOB BAUMAN, Editor