International Tax And Estate Planning Discussion Post 10 – Coursework Example
International Tax and E Planning International Tax and E Planning Presently, taking an insurance cover has conceivably been a requirement to every individual as well as organization. Due to various uncertainties in situations, an insurance policy has become a critical element in neutralizing uncertainties to individuals as well as organizations. Sometimes it is challenging to identify the right insurance policy especially to a citizen who spends most of their time overseas. The core rationale of this paper is to describe circumstances under which an offshore insurance policy can be efficient investment into individuals who spends most of their time overseas. In addition, there will be an analysis of the benefits of taking an offshore insurance policy in terms of tax evasion.
Over years, it has become an insurance cover has become exceedingly essential to individuals life as well as organization. In most cases, identifying an appropriate policy that suits every individual’s needs is challenging. When an individual is drawn into frequent travels, an offshore insurance policy is more appropriate considering the benefits that are associated with the cover.
The core requirements in Eric’s state of affairs are adding an insurance policy to his estate plan without relinquishing their US citizenship. In addition, Eric is planning to designate the beneficially to be his children rather than his wife.
An offshore insurance cover offers various advantages especially to people who often travel. Some of these benefits includes; low internal cost and low premium, flexible investment opportunities, favorable government policies among other benefits. Essentially, an offshore insurance policy is the most appropriate for Eric’s state of affairs.
Offshore life insurance offers a proficient platform for changing the beneficially or the next of keen while at the same time assuring confidentiality. The policy can be used as a family estate planning or part of investment. Additionally, insurance premiums can be paid by any form of currency distinct to other life insurance policies (Duke, 2014).
In addition, an offshore insurance policy offers an individual an opportunity to get legal exemption from high taxation. In US, registered individuals who are on trading internationally as well as international organizations are eligible to pay tax. (Bender, 2012).Offshore insurance cover offers individuals as well as organization a platform by which their taxation will significantly reduce since insurance covers are exempted from taxation.
Bender, M. (2012). Estate , Gift and Generation -Skipping Transfer Taxation of Nonresident
Aliens. New York: Mathew Bender & Company Inc.
Duke, J. R. (2014). General aspects of Offshore Life Insurance. Birmingham, Alabama: Duke