Today's comment is by Marc-André Sola, a member of The Sovereign Society Council of Experts and managing partner of NMG International Financial Services, Ltd., specializing in offshore life insurance and annuities.
Dear A-Letter Reader,
You may have heard that if you buy U.S. insurance or annuity contracts in states like Florida or Texas, then these assets are protected from your creditors. But, regardless of what domestic laws promise, real asset protection can only be found abroad. It's simple: if you protect your assets in a jurisdiction where a U.S. judge has no authority, then U.S. creditors won't be able to reach them.
The most effective and strongest asset protection can be achieved by investing through policies in Switzerland and Liechtenstein.
If you establish an annuity or insurance policy under Swiss or Liechtenstein laws, the policy is fully protected from your creditors. Once you've set up your policy correctly, a U.S., Canadian, or other foreign judge can order that your policy to be seized and still your policy remains protected. Both Switzerland and Liechtenstein have laws in place that will protect your policy regardless of what a foreign judge says.
In earlier articles, I've focused on the legal aspects of Swiss and Liechtenstein policies. I've commented on how the policies need to be established and about fraudulent conveyance rules. So today, I want to share with you some real life examples of how an annuity could work. The following stories were experienced by two of our clients...
The Floridian CPA (Certified Public Accountant)
In the early 1990s, a CPA from Florida came to our office and purchased a Swiss Annuity. At that time, this CPA was very successful in his business and he advised only the wealthiest clients. In 1995, the CPA decided to retire, but he kept advising some of his largest and most affluent clients.
But disaster struck in the late 1990s. The CPA gave incorrect counsel to one of his clients. It was entirely his fault and he was certainly negligible since he had failed to keep abreast of legal changes in his profession. The CPA's client took him to court and the retired CPA lost his assets in the suit that followed.
Of course, creditors also tried to seize his Swiss annuity. I say "tried" because they tried and failed to liquidate and seize the assets safely housed in his annuity policy.
To this day, the Floridian CPA lives off the income from his intact Swiss annuity policy.
The Hotel Owner in Canada
In the late 1990s, we had a client domiciled in Canada. This client was a wealthy woman, who owned several hotels. Unfortunately, at a certain point, her business turned sour and she had to file for bankruptcy. The Canadian judge decided that her Swiss policy was part of the bankruptcy estate. So the Swiss insurer was informed and asked to immediately liquidate the policy.
Even though the policy document was appropriately presented, the Swiss insurer did not divulge any information. The insurance company fully protected the hotel owner's privacy and responded to inquiries only in generic form. The creditors were informed that the insurer was not allowed to give out any information to third parties.
The insurance company didn't even confirm that a person bearing this name or title was a client at the insurance company. Furthermore, the insurer subsequently wrote that in the event of bankruptcy (of a policy owner), Swiss law fully protects the policy because ownership was transferred to the beneficiaries automatically as documented in the accord. Any instructions from the original policy owner subsequently forced upon her could no longer be recognized. Only her beneficiaries, as the new owners of the policy, could give instructions to the insurance company.
Early Action = the Key to Success
If you're looking for solid asset protection, you must go abroad. Swiss and Liechtenstein policies provide utmost asset protection, as long as you set up your plan correctly.
Foreign courts have no authority in Switzerland or Liechtenstein. Even under duress, insurers will not liquidate your policy for creditors. Foreign insurance companies won't even give away details about your policy, because under Swiss and Liechtenstein law, your policy is fully protected.
Creditors usually drop their attacks on your wealth once they discover how little foreign insurance companies will do for them. Most stop their ridiculous witch hunts. But if a creditor relentlessly continues to seize your wealth, he'll have to file with the local Liechtenstein or Swiss court. And then the court will tell him the policy is not a seize-able asset.
Remember, you must plan early. Your policy may NOT be protected, if you file for bankruptcy or your creditors try to seize your wealth within 12 months after you establish your policy. The key is to act now.
MARC-ANDRE SOLA, of
NMG International Financial Services
Zurich, Switzerland
info@nmg-ifs.com
EDITOR'S NOTE: Worried about your financial future? Want to gain the peace of mind that comes with securing your assets? Our wealth protection team of global experts is headed to Whistler, Canada next month for our Permanent Wealth Protection Summit. This isn't a conference. Instead, this is your opportunity to sit down with our experts one-on-one privately, and work out your personalized wealth protection plan once and for all. We'll be sending you an exclusive invitation to join us tomorrow morning.