Through these laws, I am “compelled” to pay state sales taxes, state income taxes, federal income taxes, property taxes, business and operating taxes, numerous other business taxes, gasoline tax, phone tax (including, telephone internet national access contribution tax, and I’m not even on it), sewer tax, cigarette tax, meal tax, amusement tax, computer tax, and various other excise taxes. I am required to have a business license, driver’s license, license for my car, motorcycle license, and a license for my dog. Last weekend a friend of mine was married and had to get a marriage license.

For “my own safety” I am told to carry health insurance, life insurance, dental insurance, disability insurance, long term care insurance, property insurance, liability insurance, collision insurance, theft insurance, burglary insurance, accident insurance, business insurance, flood insurance, unemployment insurance and old age pension insurance.

My very small business is governed so much by others, that I sometimes wonder who owns it. I am inspected, expected, suspected, disrespected, rejected, examined, re-examined, informed, required, commanded and compelled to provide a seemingly inexhaustible supply of information to just about every Tom, Dick, and Harry who says he’s from the alphabet soup government agency. I’m spending up to 40% of my time filling out forms and other mandatory reporting or they say, I’m going to be penalized, imprisoned, or both.

I can tell you honestly that but for a miracle that happened, I could not have enclosed this check. A very dear relative of ours, died a few years ago, and the estate was finally settled. After the attorneys, accountants, and appraisers finished settling the probate jail process, paid court costs, federal and state inheritance taxes, I was left with just enough money to pay your bill. Do you think it’s possible that I will be required to pay taxes on this money too? If this is so, would you please be so kind to send it back.

Sincerely yours,

I. M. Broke

For thinking outside the box, YOU’RE AT THE RIGHT PLACE!!!

YOUR LIFE’S FINANCIAL GOALS SHOULD BE:

• To become ” judgment proof ” and preserve and legally protect your wealth.
• To defer (postpone) your capital gains taxes [click here to read about our Vertex Trust®]. [Federal 20-28%, + your state tax].
• To reduce, defer or possibly eliminate your income taxes and on your “other income streams” [Federal 39.6% + your state].
• To eliminate the “probate jail process.” In some states “probate jail” could take 3+ years and consume 7% to 15% of your gross estate.
• To eliminate ALL inheritance taxes [click here to read about our Medallion Trust®]. Federal + state can take up to 65% of your gross estate. Inheritance taxes when combined with probate costs, could consume up to 80% of your gross estate.

The key: Estate Street Partners.

The Alternative, Uncompromising & Exclusive Estate Planning & Wealth Preservation for Your Chartered Blueprint to Accelerated Financial Success

Avoid ID Theft and Learn How the Ultra Trust ® can Protect You From Creditors

Get the Ultra Trust ® to Protect Your Privacy from Creditors and others

With my proven ULTRA TRUST ® you can effectively reposition our assets from you to a legal entity that effectively shuts out privacy invaders.

ONE signature and ONE Document, will lock your wealth out of reach from unscrupulous lawyers, over ambitions creditors, and over zealous bureaucrats. ONE signature will insulate you from frivolous lawsuits, eliminate the probate process, eliminate all inheritance taxes, and keep your private information from being sold to the highest bidder.

With The ULTRA TRUST ® you don’t own any assets.

Marketing companies can’t sell information about people they don’t know anything about. Lawyers are not going to take cases where they are contingent on getting 1/3 of NOTHING. Identity Thieves will have a hard time tracing your wealth.

Eligible Assets That Can Be REPOSITIONED to The ULTRA TRUST ®

There are no dollar limitations or the type of assets that can be repositioned from you to The ULTRA TRUST ®.

There are no dollar limitations or the type of assets that can be repositioned from you to The ULTRA TRUST ®.

The ULTRA TRUST ® may own:

• Your Personal Residence
• Other Real Estate, your vacation spot
• Investment Account (stocks, bonds, collectibles, antiques, boats, planes, …)
• Your Life Insurance Policy
• Your Automobiles (especially if you have under age drivers and may reduce your insurance premium, or eliminate the need of an umbrella policy)
• Your Business(es), your corporation stock, LLC shares. The ULTRA TRUST™ is the only device that can own your sub “S” stock.

The ULTRA TRUST ® is an absolute asset protection fortress when the ULTRA TRUST ® owns a Limited Liability Co. (LLC) or is the General Partner in a Limited Partnership. Contact us today and get your privacy protect!

Defer Income Taxes and other “Earned Income Streams

This deferred compensation planning is strictly for U.S. Citizens who spend less money than they make. It’s extremely attractive to affluent brokers, investors, entertainers, personalities, physicians, entrepreneurs, industrialists, key employees, senior executives, …any highly compensated individuals or with commercial rights to income streams such as patents, royalties, rents, day trading, etc. any income stream.

The downside is that, you must have surplus income, greater than US$150,000 over your living expenses.

The objective is to defer Income Taxes on your “earned excess cash” over your requirements to live on. This planning when properly implemented by a qualified competent professional, will reduce your tax burden from 50% down to less than 10%. Once implemented, your plan will be able to utilize it’s strategic tax treaty position to achieve certain other financial goals, all under the (legal) jurisdiction of the International Tax Treaty.

This Deferred Compensation Planning may be equated to your self directed IRA (Individual Retirement Account) or Self Employment Plan (SEP) or (KEOGH):

• Contributions are Tax-Deferred (postponed)
• Investment earnings are Tax-Deferred (postponed)
• Withdrawals are Taxable
• There are NO legal requirements for withdrawals thus, deferred

The objective of your Foreign Deferred Compensation Program is to defer Income Taxes on your “earned excess cash” over your requirements to live on.Depending on your life expectancy tables supplied by the IRS and your financial goals, this money may be Tax-Deferred over your life-time. If your “Income-Stream” qualifies, contact us directly. It requires careful drafting, attention and professional implementation. It’s a legitimate, logical, and suitable method of tax deferral. Ultimately, these transactions are complex – one size does not fit all, not done over the internet, telephone, fax, Email, or snail-mail.

Steps to Defer Your Capital Gains Tax for Any Highly Appreciable Assets & Defer Your Income Tax for Any Income Stream or Salary

Don’t blame your accountant. We specialize in tax-deferred, wealth preservation strategies. Financial engineering, with a twist.

How many attorneys and accountants could expound on such divergent concepts as: VEBAs, ESOPs, offshore employee leasing, transfer pricing regulations, CFC regulations, Foreign Sales Corporations (FSCs), small insurance companies, shared appreciation, equity stripping, charitable support organizations, private foundations, Section 1031 transfers, Section 1035 transfers, offshore foundations, private annuities, etc.

Dance your way around the Tax-Man. In an increasingly specialized world, it’s impossible for attorneys and accountants to keep abreast of all changes outside their narrow areas of practice. Most advisors have not become proficient in finding ways to help their clients with specialized tax strategies and tax advantaged solutions. The combination of factors: (a) the newness of the concepts and (b) the complexity and difficulty of the subject matter, has kept this to a focused few.

Asset protection, wealth preservation, tax avoidance, and tax reduction is a building block solution. Call me if you have a complex financial goal. We have a network of bonded and licensed real-world financial experts, across boundaries, on a domestic and international platform, with complete discretion, legal, and tax compliance of your transaction(s).

Two dynamic Tax-Deferral strategies with a surprising twist:

1. Defer (postpone) your capital gains taxes, up to 30 years.
2. Defer taxes on your salary, on any income stream.

(1) Defer Your Capital Gains Taxes on any Highly Appreciated Asset:

Based on your life expectancy, your taxes can be tax-deferred up to 30 years. “Deferred” means “Postponed.”

Qualifying appreciated assets include:

• the sale of your real estate
• the sale of your business
• your stocks, bonds, collectibles, art work, antiques, boats, planes
• ANY HIGHLY APPRECIATED ASSET(S)
• a note receivable that’s at least 2 years old
• your lottery winning, etc.

Example: $1million = $17.4million tax-deferred in 30 years.

1. A $1million capital gain will tax-defer an immediate Federal Capital Gains taxes of $200,000 plus your state capital gains taxes.
2. $1million (assumed) re-invested @10% for 30 years, will accumulate $16.5milliong of “tax-deferred” Income.
3. At the date of your death, you will eliminate the very public probate jail process, court costs, probate fees, and
4. You will tax-defer $9.6million of federal inheritance taxes, plus your state inheritance taxes.

Original Capital Gain	$1,000,000
Federal Capital Gain Taxes @ 20%	$200,000
State Taxes on Capital Gain @ 9%	$90,000
Tax-Deferred Income 1million @10%, 30 years	$16,449,402
Federal Inheritance Taxes Deferred @ 55%	$9,597,171
State Inheritance Taxes Deferred @ 9%	$1,570,446
Total Available to Your Heirs	$17,449,402

When this transaction is appropriately engineered and implemented by a qualified competent professional, your taxes may be postponed up to 30 years.

“Knowledge” is our most important “product.”

This series of financial transactions are complex. Not for everybody, one size does not fit all. It requires careful attention and professional competent implementation. It’s a legitimate, logical, and suitable method of tax deferral. To see if you qualify, contact us directly. Ultimately, the complexity of these transactions are not done over the internet, telephone, fax, Email, or snail-mail.

“The hardest thing in the world to understand is the income tax.” – Albert Einstein.

There are two bridges. The first is easier to cross, you merely pay the toll. The other is “tax deferred” but you have to drive an extra mile in order to cross. The tragedy of life is that so few people know that the “tax deferred bridge” even exists.

See also Vertex Trust® / Deferral of Capital Gains

This Tax Deferral Transaction is NOT:

• NOT a section 1031 exchange
  (problem: you exchange known problems for the unknown and will not eliminate your original goal of selling your asset)
• NOT a Charitable Remainder Trust, or any of those hybrids
  (problem: you lose control of your assets to people who only care about spending your money as fast as they can. In addition, any tax benefits are quickly dissipated due to various IRS restrictions, NOT MY CHOICE.)
• NOT a Charitable Lead Trust or, any of those hybrids
  (problem: you lose control of your assets, tax benefits are lost due to IRS limitations.)
• NOT a purchase of someone else’s Capital Loss Carryover
  (problem: constructive step transaction, invitation to an IRS audit)

This Tax Deferral Transactions IS:

It’s a series of transactions financially engineered to defer your capital gains taxes, eliminate “probate,” eliminate estate taxes, defer taxes on your investment income, and when appropriately structured by a competent professional and is part of your financial plan, your taxes are deferred in your lifetime and your heirs may get the cash tax-deferred. I said Tax-Deferred.

It’s a series of transactions financially engineered to defer your capital gains taxes, eliminate “probate,” eliminate estate taxes, defer taxes on your investment income, and when appropriately structured by a competent professional and is part of your financial plan, your taxes are deferred in your lifetime and your heirs may get the cash tax-deferred. I said Tax-Deferred.

If you qualify, call us or contact us through the net. MINIMUM capital gains required US$500,000 Short term; US$1million Long Term.

Click here from more information on Deferring Capital Gains Tax on any of your highly appreciable assets.

(2) Defer Income Taxes on Your Salary or any Income Stream

Exclusively for those who “earn” more money than they spend, for the year.

This plan is on deferring your “Earned Income” (wages, salary, personal service contracts, commissions, any W-2 or 1099 compensation). Other forms of income streams (patents, rents, royalties, day trading, etc.) may be financially engineered to fit this legal exception. Minimum earned surplus cash required $150,000.

This financial “International Tax-Treaty” plan is extremely attractive to Brokers, Investors, Entertainers, Personalities, Physicians, Entrepreneurs, Industrialists, Key Employees, Senior Executives…any highly compensated individual or with commercial rights to income streams…patents, royalties, rental income, day trading, etc.

Click here for more information on deferring your income tax.

Who may qualify: a broker, executive, “affluent” investor, entrepreneur, industrialist, physician, senior executive, key employee, entertainer, any highly compensated individual with earned income or commercial rights to income, in excess of his requirements to live on.

Are you aware?

If a “non United States person” purchased Canadian utility bonds through a U.S. Virgin Islands exempt company, his bond interest is not subject to Canadian or U.S. taxes, his capital gains is not subject to Canadian or U.S. taxes, he has no estate taxes, but he has full use of the U.S. Court System against expropriation and litigation? How is it possible you ask? Well, it’s “advanced financial engineering & wealth preservation for accelerated financial success.”

“Special exemptions” under IRC §936 apply to the U.S. Virgin Islands, Puerto Rico, Guam, the Northern Mariana Islands, and the American Samoa. These “possessions” of the United States have “mirror systems of U.S. taxation” by transforming the Internal Revenue Code (IRC), as amended, into a “local code” by substituting “its name” for the name of the “United States” when appropriate. Residents are United States Citizens. But, for “tax purposes” they can become “offshore” with access to the United States Court Systems and all bi-lateral tax treaties. For “tax purposes” then, how do you become a “non U.S. person?”

What is an International Business Company? Explains the History, Advantages, Famous People who Use IBCs and the Tax Incentives of an IBC

What is an IBC (International Business Company):

The “IBC” is a Caribbean-flavored “legal entity” similar to the U.S.-based corporation or limited liability company. The IBC, like any corporation, has members (shareholders), officers, and directors.

Major Advantages of IBCs:

Simplicity and Flexibility.

Other common words to the International Business Company (IBC) are Foreign Limited Liability Company (FLLC) or Foreign Asset Protection Trust (FAPT).

The International Business Company (IBC) “Legal Entity” is used for international wealth preservation and asset protection. If you have been told more than that “Congratulations!” You’ve just found an incompetent advisor, scam artist, or worse. Don’t walk, RUN.

Warning: An incompetent advisor can cost you more than just money. When contemplating doing business internationally be certain that the advice you receive is from a competent professional familiar with such matters. Avoid unpleasant legal and harmful tax consequences. Only professionals familiar with international and offshore taxation can provide you (the “U.S. Person“) with proper advice. Foreign professionals, foreign banks and foreign institutions cannot be relied upon.

IBC Jurisdictions:

The British Virgin Islands (BVI) has the most registered IBCs, estimated at 360,000. Next, is the Bahamas at 113,000. Other jurisdictions include, Antigua, Cayman Islands, Belize, Isle of Man, Panama, the Channel Islands, Hong Kong, Gibraltar, Turks and Caicos Islands, Cook Islands, St. Vincent, Nevis, and Vanuatu, to name a few. So what’s the mystery? What’s the chatter all about?

Historical Perspective:

Offshore Financial Centres, in order to attract “new” financial business to their islands re-invented themselves by enacting “exempt” legislation laws. The British Virgin Islands (BVI) was the first to implement the International Companies Act (“the ACT”) of 1984. Because of it’s spectacular success others followed, but BVI remains the most sought after IBC registration jurisdiction.

The desirability of the British Virgin Islands jurisdiction is related to the pro-business environment, flexibility as a corporate vehicle, minimal information and disclosure requirements, global identity, widespread recognition, and exemption from local taxation.

Common to IBCs:

Common to all IBCs are the dedication to business use outside the incorporating island jurisdiction. Bearer shares are permitted in some jurisdictions, one person may act as the sole shareholder/director/officer and does not have to reside within the country of jurisdiction. “Bearer Shares” means he who owns the shares (undisclosed) owns the company. Shareholder meetings, corporate records, accounting records need not be kept within the country of jurisdiction. It’s entirely possible that the identity of the shareholder/director/officer may never be disclosed to the government.

Formation of an IBC:

International Business Companies (IBCs) can be formed in any jurisdiction at very competitive prices, usually within 24 hours, by a locally registered trust company, accountant, or attorney. Registered trust companies are generally bonded and insured. There’s approximately 2.5 million globally registered International Business Companies, of which 37% are to be found in the Caribbean and Latin America, 25% in Europe, 30% in Asia and the Pacific, 8% in Africa and the Middle East. – source: Working Paper of the United Nations Office for D.C.C.P.

Tax and Incentives of an IBC:

A lot of Americans don’t understand the popularity of an IBC “Legal Entity.” Several offshore international financial centres have made the IBC an uncomplicated business vehicle adaptable to all kinds of business, easy to implement with minimal paperwork requirements, with increasing global recognition and acceptance. Practical Applications of an IBC

Some of the financial incentives are:

• A minimal requirement of one (1) shareholder and director
• Assets placed within the IBC are protected from creditor suits, court judgments, or government seizure
• Another legal entity may serve as a director
• Local Jurisdiction Exemption from all corporate taxes
• Local Jurisdiction Exemption from income tax, or capital gains tax, or any tax on the transfer of assets or securities to any person
• Local Jurisdiction Exemption from all withholding taxes on dividends, interest or other returns to shareholders
• No Statutory audit restrictions or requirements. Company books can be kept anywhere in the world
• Shareholders meetings can be held anywhere in the world
• No minimum share capital requirements
• No annual returns or accounts requirements
• Availability of wide range of professional services
• Ability to issue bearer shares (undisclosed owners in the IBC)

What can an IBC do:

• In general, an IBC “Legal Entity” may engage in any lawful activity(ies) not restricted by the country of incorporation or the jurisdiction in which it may want to operate, including shipping, manufacturing, consulting, transportation, communication, licensing, sub-licensing, etc.
• An IBC may engage in any international lawful commerce, including within and without the United States. However an IBC may not engage in banking without a proper license, may not engage in trust services, insurance, re-insurance, or captive insurance without a proper license, may not engage in a stock broker or commodity trading company without proper licensing.
• An IBC may act as a holding company with ownership in other legal entities
• An IBC may provide loans, collection services, act as a finder, collect finder’s fees and commissions
• An IBC may hold title to real and intangible property such as real estate or a patent
• An IBC may enter into leasing arrangements for real or personal property such as equipment, motor vehicles, or other machinery
• Act as an import/export company, or a fulfillment company take orders, invoice, drop ship, re-invoice.
• An IBC can license intellectual property
• Added layer of wealth/asset protection and privacy. An IBC can become the medium from which to manage lawful international activities such as an Asset Protection Trust (domestic or foreign), a Limited Liability Company (domestic or foreign), be the General Partner in a Limited Partnership (domestic or foreign), or other legal entities to provide and protect privacy.
• Probate avoidance
• Practical Applications

“O f f s h o r e” Is NOT a Dirty or Intimidating Word.

The International Monetary Fund (IMF) has written a most comprehensive offshore financial report. I Strongly urge you to go to their website:

Offshore Financial Centers – IMF Background Paper Prepared by the Monetary and Exchange Affairs Department (June 23, 2000). //www.imf.org/external/np/mae/oshore/2000/eng/back.htm

To quote the International Monetary Fund (IMF): “OFCs (Offshore Financial Centers) can be used for legitimate reasons, taking advantage of: (1) lower explicit taxation and consequentially increased after tax profit; (2) simpler prudential regulatory frameworks that reduce implicit taxation; (3) minimum formalities for incorporation; (4) the existence of adequate legal frameworks that safeguard the integrity of principal-agent relations; (5) the proximity to major economies, or to countries attracting capital inflows; (6) the reputation of specific OFCs, and the specialist services provided; (7) freedom from exchange controls; and (8) a means for safeguarding assets from the impact of litigation etc.

They can also be used for dubious purposes, such as tax evasion and money-laundering, by taking advantage of a higher potential for less transparent operating environments, including a higher level of anonymity, to escape the notice of the law enforcement agencies in the “home” country of the beneficial owner of the funds.”

U.S. Persons:

When a U.S. Person forms a foreign corporation in a favorable “no-tax” international jurisdiction, the United States laws will recognize that corporation, for “LEGAL” purposes, as a corporation. However, for “TAX” purposes (not legal purposes), the IRS may classify that legal corporation for TAX purposes as something else, such as a “disregarded entity” (one owner) or a partnership (two owners). A “disregarded entity” for TAX purposes means the Internal Revenue Service (IRS) will assign whichever entity produces the greatest tax liability for the disregarded entity.

The only real opportunity for U.S. tax avoidance and deferral is in the business arena rather than in the investment arena to the extent that a non-U.S. based business can operate without having any employees or agents in the United States, the profits are not subject to U.S. taxes. That’s true even if the products are sold to U.S. customers via the Internet. Warning: Controlled Foreign Corporation (CFC) classification is complex (IRC §951 thru §960). Consult with a competent professional.

A “U.S. Person” is defined by Internal Revenue Code Section §957(d) as:

Warning: Avoid legal and harmful, unpleasant results. There’s a myriad of reporting requirements by a “U.S. Person” some of which may have financial penalties, tax adverse consequences, and/or criminal sanctions. An incompetent advisor can cost you more than just money. When contemplating doing business internationally be certain that the advice you receive is from a competent professional familiar with such matters. Foreign professionals, foreign banks and foreign institutions cannot be relied upon.

Recognizable names doing business internationally:

(Flowchart of Typical IBC Structures)

Practical Applications

Asset Protection & Wealth Preservation: A secondary reason why noted people like Michael Jackson and others bank in the Bahamas and other recognizable tax haven jurisdictions is for unbending asset protection and wealth preservation. Creditors and their very clever contingent fee lawyers cannot seize, lien or investigate bank records in tax haven jurisdictions due to strong bank secrecy laws. All of the largest banks in the world have to go through the local courts. Judgments are not enforceable in non-United States jurisdictions. U.S. contingent fee lawyers and their clients have a significant jurisdictional problem: only citizens of the tax haven jurisdiction can practice law. U.S. lawyers or their clients will have to hire a local law firm and pay up-front legal fees, post bonds, pay court costs, and pre-pay other expenses to pursue their claims.  Generally speaking, foreign generated claims/judgments are frowned upon by the local authorities.

The internet is facilitating world-wide banking, exponentially: It’s a fact most businesses that operate on the internet could legally and legitimately be organized in any of the tax havens of the world, and legally not owe any United States income taxes on their earnings. Most international U.S. based companies utilize this fact to its maximum potential. The IRS taxes United States shareholders of a foreign corporation only on their “sub-part F income” that the foreign company earns. Profits from services performed in the local tax haven jurisdiction or any foreign country itself are not considered “sub-part F income” by the IRS! American laws curbing the use and abuse of offshore tax havens have been around since the Kennedy Administration. In over 37 years, only minor changes to the U.S. Controlled Foreign Corporation (CFC) provisions under Internal Revenue Code sections §951 to §960 have been enacted.  

Tax law benefit: “legally trading U.S. stocks & bonds tax free” Offshore banks and companies are not subject to United States capital gains taxes on their publicly traded Wall Street type stocks, bonds, and commodity trades. See section §871(a)(2) of the Internal Revenue Code (IRC); also see IRC §881 and IRC §897(c)3 together with Treasury Regulations §864-2(C)1 & (2). The United States has never taxed the capital gains of Non-Resident Aliens (NRA), offshore companies, offshore trusts, and offshore banks, unless the foreigner was doing business within the United States. “Doing business within the United States” generally means operating through a U.S. office or permanent establishment from within/inside the United States. (These same tax benefits for foreigners are NOT offered to it’s own United States Citizens).

The United States Income Tax Code even exempts a non-resident company from United States capital gains taxes, even when it does have an office and staff inside the United States, “if all the company’s business amounts to merely trading in the United States Stock Market.” From his home in Connecticut, or office on Fifth Avenue in New York, or in the Sears Tower in Chicago, or from Beverly Hills California, or Boston’s Prudential Tower, any person working for an offshore company could call his broker at Merrill Lynch or Paine Webber, or use his Internet Discount Broker, and day trade NYSE, NASDAQ or AMEX listed securities 1,000 times a day/week/month, and no tax on the profits would be owed the United States Treasury. IRC § 871(a)(2) gives Foreign Aliens non-taxable advantages not available to its resident-citizens.

With proper financial engineering: Foreign investors may receive preferential tax treatment by utilizing tax exemptions created by Internal Revenue Code (IRC) §881; §897(c)(3); §936; U.S. Treasury Regulations §864-(C)(1) and §864-(C)(2); further enhanced by the Canadian / United States Tax Treaty.

This benefit is not available to a “U.S. Person.”

An example: Paris, France resident Msr. Francois Dumont (or any non-United States person) investing $10 million in Canadian utility bonds with a yeald of 12% would pay NO United States taxes on $1.2 million of yearly interest, and if he sold his bonds for $14 million, Msr. Dumont would pay NO capital gains taxes on his $4 million profit. Moreover, by utilizing a ‘United States Virgin Island exempt company’ not only does Msr. Dumont receive tax preferred investor treatment, but he is covered by the United States extensive network of treaties of Friendship, Commerce and Navigation and bi-lateral investment treaties that offer protection against “expropriation of assets” and other benefits, and including access to the United States Federal court system, and pay NO United States Inheritance/Estate Taxes. (Note: Canadian withholding taxes are 25% on interest paid to non Canadian treaty countries, the statutory withholding requirement is dropped to 0% on interest by virtue of Canadian / U.S. treaty, and 15% on dividends).

Special Exemptions” under IRC §936 apply to The U.S. Virgin Islands, Puerto Rico, Guam, the Northern Mariana Islands, and the American Samoa. These “possessions” of the United States have “mirror systems of U.S. taxation” by transforming the Internal Revenue Code (IRC), as amended, into a “local code” by substituting “its name” for the name of the “United States” when appropriate. Residents are United States Citizens, but for “tax purposes” they can become “offshore” with access to the U.S. Court Systems and all bi-lateral tax treaties.

Warning: Avoid legal and harmful, unpleasant results. There’s a myriad of reporting requirements by a “U.S. Person” some of which may have financial penalties, tax adverse consequences, and/or criminal sanctions. An incompetent advisor can cost you more than just money. When contemplating doing business internationally be certain that the advice you receive is from a competent professional familiar with such matters. Foreign professionals, foreign banks and foreign institutions cannot be relied upon.

Click here for tax reporting requirements.

Hire Estate Street Partners and Avoid ALL the Unpleasant and Harmful Tax Traps.

Effective January 1, 2001 Treasury Regulations §1.144-1 through 1.114-7 and CFC rules under the provisions of the Internal Revenue Code §951-964 require foreign banks and foreign financial institutions to become “qualified intermediaries” or “QIs” with the Internal Revenue Service.  These onerous requirements if not handled appropriately will have severe unwanted and unpleasant adverse tax consequences:

• Withholding tax of 30%
• Capital losses from investments by the “U.S. Person” are not tax deductible until the foreign entity is liquidated
• Capital gains normally taxed at 20% are converted to ordinary taxable income, taxed at 39.6%
• The “U.S. Person” may be double taxed on dividend distributions from U.S. sourced income i.e. dividends from US companies
• Sale of the foreign entity is taxed at ordinary income taxes (39.6%), NOT capital gains tax rate of 20%
• The basis in the foreign entity does not get the “stepped-up” basis for estate tax valuation
• Foreign inheritance taxes may apply if a “U.S. Person” purchases foreign based securities
• Passive investment income may be subject to CFC (Foreign Corporation Classification) and PFIC (Passive Foreign Investment Company) complex rules and a 30% withholding tax
• Internal Revenue Tax Return Filing Requirements
• Disregarded entities for IRS income tax purposes

Some Statistics:

• 25% – the percentage of Americans investing offshore with an annual income over $100,000 (source: The US Department of Commerce)
• 20% – the percentage of reported growth of foreign bank accounts filed by U.S. individuals and corporations between 1995 and 1999. (source: The Economist)
• 25% – the chances of a U.S. citizen will have a catastrophic lawsuit during their lifetime. (source: The Economist)
• 1% – the percentage of the world’s population represented by offshore financial centers. (source: The Tax Haven Guidebook)
• 50% – the percentage of the world’s wealth found in those offshore financial centers. (source: The Tax Haven Guidebook)
• 31% – the percentage of profits of U.S. multinational corporation to be found in those offshore financial centers. (source: The Tax Haven Guidebook)
• 60% – percentage of Bermuda captive insurance business provided by U.S. companies. (source: The Economist) Bermuda is the largest offshore insurance jurisdiction with over 1,500 registered insurance companies with annual premiums exceeding US$16 billion.
• 87% – percentage of offshore hedge funds which outperformed the S&P 500 in February 1999.(source: The Economist)
• 43% death tax rate or ($2,170,250 – the approximate “federal” estate taxes that would be owed by a California resident who died with a $5,000,000 estate.) California tax could be an additional 10%.
• 3,000,000 – estimated number of Visa cards issued by the Caribbean islands for the four quarters ended 3/31/99. (source: Visa.com)
• $1,300,000,000 – estimated sales volume to those Caribbean cards. (source: Visa.com)

Final Thoughts:

• Ask yourself: Why do nearby tax havens like Cayman Islands, Barbados, and the Bahamas rival such money centers like London, Tokyo, and New York? Why is that?
• Tiny pint sized Cayman Islands, 5th largest banking in the world, boasts more than 595 commercial banks exceeding estimated $600 billion deposits (unconfirmed, probably that’s more than on deposit in all California’s commercial banks in comparison by size and scope of the tiny island Vs. California, where’s the money coming from?), while Bahamas once the third largest financial center, just 50 miles from the Florida coast, has more than 400 banks and trust companies with unconfirmed estimates of $300 billion deposits. Ask yourself, why is that? Who’s money is that?
• Why are most recognizable world banks, including U.S. banks, U.S. Big Six accounting firms, and large law firms maintain fully staffed offices, offshore?

For more reading on offshore tax havens, llc, offshore asset protection, foreign llc click here: Frivolous Lawsuits, Limited Liability Company, LLC Advantages, Foreign LLC, Offshore Tax Havens, Offshore Asset Protection.

Offshore Tax Havens: Protecting Your Assets & Preserving Your Wealth

Why International Offshore Tax Havens?

In the United States, the legal system is often stacked in favor of the plaintiff and against the defendant. The corporate veil is routinely ignored. This encourages the filing of spurious lawsuits.

For a mere filing fee, a contingent fee lawyer and his client risk very little to see how things turn out.

The possibility of being on the receiving end of a ruinus judgment can instantly result in the loss of a lifetime’s accumulation of hard work. Lawyers for plaintiffs only prosecute cases they believe will pay off. The largest growing business in America are contingent-fee lawyers. Look in the yellow pages of your phone book and you’ll see what I mean.

The Internet has facilitated an exponential rate of detailed information about your personal and/or your business accounts, property ownership, investment holdings, income, savings, and many other facts about you, your business, your associates, your buying/spending habits, and so forth.

Most trial lawyers will tell you, that forming U.S. based corporations for asset and wealth protection is not worth the certificate it’s written on. Judges will inform you that if any asset is within their jurisdiction anywhere in the U.S. they have the power to redistribute your wealth.

So, what’s the answer?

Become a smaller target and internationalize your assets.

Many international, offshore tax haven jurisdictions impose less governmental regulatory restrictions and reporting, less taxes on their assets and income, greater flexibility and disclosure requirements. Individuals, professionals, entrepreneurs, and their companies adopt an aggressive policy to safeguard and preserve their wealth and assets from predators and their very clever lawyers, while significantly reducing their costs of doing business.

An offshore corporation or other offshore legal entities can conduct any type of business in the United States that U.S. corporations can. You sacrifice nothing by by having a corporate veil with real teeth. An International Business Company (IBC) is an offshore corporate legal entity that does not have to comply with a U.S. based judgment.

Judgments are not enforceable in non-United States jurisdictions. U.S. contingent fee lawyers and their clients have a significant jurisdictional problem: only citizens of the tax haven jurisdiction can practice law. U.S. lawyers or their clients will have to hire a local law firm and pay up-front legal fees, post bonds, pay court costs, and pre-pay other expenses to pursue their claims. Generally speaking, foreign generated claims and judgments are frowned upon by the local authorities. “You are in your home country.”

The need for international diversification arises because of perceived shortcomings in the U.S. judicial, legislative, and political processes. Once the plaintiff sees the uphill battle involved, plus the enormous costs out of his/her own pocket, he/she may may either revaluate the merits of filing a lawsuit or settle for a fraction of the settlement he/she may have received in a U.S. Court. This fact alone, can become your catalyst for good, solid financial, estate planning and save thousands off your liability insurance premiums.

Did you know the United States government offers “Tax-Haven” status to NON-U.S. citizens.

Foreign investors consider the United States as their “offshore” “tax-free tax-haven jurisdiction” due to favorite treatment of their investments and tax-free status afforded to them. There’s NO Capital Gains Taxes on securities purchased in the United States and sold by foreign investors. According to US tax code section 871(a)(2), non-resident aliens (NRA) who invest in stocks and commodity securities in the USA are not subject to tax on any gain from such investments by the USA if the gains are not “effectively connected” with a US trade or business and if the NRA is not present in the US for more than 182 days in the taxable year. Gains on the disposition of debt securities such as bonds may be exempt from tax if there is no original issue discount on the bonds.

How Foreigners use the United States as their “International Offshore Tax Haven”:

NON-United States citizens may establish a United States Virgin Island Exempt Company, invest in Canadian Utility Bonds with a 12% interest coupon rate and pay NO United States Taxes on the interest and NO-taxes on it’s capital gains. All, perfectly legal.

This tax break is NOT available to a U.S. Person

Foreign investors receive preferential tax treatment by utilizing tax exemptions created by Internal Revenue Code (IRC) §881; §897(c)(3); §936; U.S. Treasury Regulations §864-(C)(1) and §864-(C)(2); further enhanced by the Canadian / Mexican / United States Tax Treaties.

For example, if a French citizen(or any foreign individual) purchased Canadian utility bonds through a U.S. Virgin Islands exempt company, his interest is not subject to Canadian or U.S. taxes, his capital gains is not subject to Canadian or U.S. taxes and he has no estate taxes; but but he has availability to use the U.S. court system?

The United States Virgin Islands, comprised of 68 islands and cays in the Caribbean Sea; 1,075 miles southeast of Miami and 40 miles east of Puerto Rico including St. Thomas, St. Croix, and St John are part of the United States and mirror the U.S. Tax Code except that it’s afforded special exemptions as a “possession.”

Special exemptions” under IRC §936 apply to The U.S. Virgin Islands, Puerto Rico, Guam, the Northern Mariana Islands, and the American Samoa. These “possessions” of the United States have “mirror systems of U.S. taxation” by transforming the Internal Revenue Code (IRC), as amended, into a “local code” by substituting “its name” for the name of the “United States” when appropriate. Residents are United States Citizens, but for “tax purposes” they can become “offshore” with access to the U.S. Court Systems and all bi-lateral tax treaties.

60+ offshore international tax haven financial centers

International diversification aggressively safeguards and preserves your assets and wealth against risks associated with an increasingly litigious society; financial uncertainties created by your business environment; economic and social factors creating financial uncertainties; ever increasing demands from regulators, potential creditors, and other predators determined to exploit your wealth.

Major Offshore Financial Regions by Countries, Territories, and Jurisdictions:

Anguilla, Antigua, Aruba, Bahamas, Barbados, Belize, Bermuda, British Virgin Islands, Cayman Islands, Costa Rica, Dominica, Grenada, Montserrat, Netherlands Antilles, Panama, Puerto Rico, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Turks and Caicos Islands.

Andorra, Campione, Cyprus, Dublin, Ireland, Gibraltar, Guernsey, Isle of Man, Jersey, Liechtenstein, London, U.K., Luxembourg, Madeira, Malta, Monaco, Netherlands, Switzerland.

Cook Islands, Guam, Hong Kong, Japan, Labuan, Malaysia, Macao, SAR, Marianas, Marshall Islands, Micronesia, Nauru, Niue, Philippines, Singapore, Tahiti, Thailand, Vanuatu, Western Samoa.

Djibouti, Liberia, Mauritius, Seychelles, Tangier.

Bahrain, Israel, Lebanon.

To quote the International Monetary Fund (IMF): “OFCs (Offshore Financial Centers) can be used for legitimate reasons, taking advantage of: (1) lower explicit taxation and consequentially increased after tax profit; (2) simpler prudential regulatory frameworks that reduce implicit taxation; (3) minimum formalities for incorporation; (4) the existence of adequate legal frameworks that safeguard the integrity of principal-agent relations; (5) the proximity to major economies, or to countries attracting capital inflows; (6) the reputation of specific OFCs, and the specialist services provided; (7) freedom from exchange controls; and (8) a means for safeguarding assets from the impact of litigation etc.

They can also be used for dubious purposes, such as tax evasion and money-laundering, by taking advantage of a higher potential for less transparent operating environments, including a higher level of anonymity, to escape the notice of the law enforcement agencies in the “home” country of the beneficial owner of the funds.”

“In truth, there are very legitimate financial reasons for an American citizen to `go offshore’. These include avoiding exposure to costly domestic litigation and excessive court damage judgments and jury awards, protection of assets, unreasonable SEC restrictions on foreign investments, the availability of more attractive and private offshore bank accounts, life insurance policies and annuities, avoidance of probate and reduction of estate taxes.” – source: Statement of Hon. Ron Paul of Texas, 2000 Congretional Record, page E1868-E1869. October 19, 2000. (//paul.house.gov/index.php?option=com_content&task=view&id=446&Itemid=60). (//www.house.gov/paul/congrec/congrec2000/cr101900money.htm)

That great economist, Wilhelm Roepke, once wrote: ‘It is very easy to awaken resentment against people who not only have money, but also the boldness to send that money abroad in order to protect it against all manner of domestic insecurity. It’s vital that people in their means of existence, that is, capital, still have the chance to move about internationally, and when absolutely necessary, to escape the arbitrariness of government policy by means of secret back doors.’ – source: Statement of Hon. Ron Paul of Texas, 2000 Congretional Record, page E1868-E1869. October 19, 2000. (//paul.house.gov/index.php?option=com_content&task=view&id=446&Itemid=60) (//www.house.gov/paul/congrec/congrec2000/cr101900money.htm)

Warning: Avoid legal and harmful, unpleasant results. There’s a myriad of reporting requirements by a “U.S. Person” some of which may have financial penalties, tax adverse consequences, and/or criminal sanctions. An incompetent advisor can cost you more than just money. When contemplating doing business internationally be certain that the advice you receive is from a competent professional familiar with such matters. Foreign professionals, foreign banks and foreign institutions cannot be relied upon.

Asset Protection using Offshore/Foreign LLC (Nevis LLC) and How to Avoid Fraudulent Conveyance

November 7, 2000

Wenham, MA 01984

Re: Using Offshore Limited Liability Companies for asset-protection planning, specifically addressing "fraudulent conveyance."

Dear Rick,

You have asked me about the importance of using Foreign Limited Liability Companies (FLLCs) in certain circumstances where one of the members may be under attack by a creditor and the possible "fraudulent conveyance rules" bearing on the transfer of underlying assets.

A justice system run amuck. We have a highly unusual judicial system. Contingent-fee lawyers act like predators, armed street gangsters. Judges and juries act like Robin Hoods, determined to redistribute your wealth. Statistics are staggering: you will be sued more times than you will have a hospital stay.

And what’s outrageous is that our judicial system helps them by:

1. making it easy for your predator-plaintiffs to sue
2. predator-plaintiffs and their lawyers will sue you for just about anything they can dream up and
3. plaintiffs don’t need to pay their lawyers in advance

They will work for a percentage of whatever they can squeeze out of you. The Trap has been set! Clever gold-digging lawyers have been successful in casting you as the villain. You are the "greedy rich" at the expense of working stiffs. Judge and juries are out to get even.

At a time when offshore trusts are under a magnifying glass, some clients and their U.S. financial planners are looking for alternative strategies. One such strategy may involve the use of Foreign Limited Liability Companies (FLLCs) for absolute strong asset protection and wealth preservation legislation. I’m presenting to you the use of a "Nevis Limited Liability Company" as the preferred "legal entity" alternative because of Nevis’s strong asset protection legislation against fraudulent conveyance.

Nevis is an offshore island in the eastern Caribbean Sea consisting of Saint Kitts (Saint Christopher) and Nevis. Nevis became independent from the United Kingdom in 1983. Under the Nevis Business Corporation Act (the ACT) of 1984, tax holidays are provided to all companies that carry on business outside its tax-haven jurisdiction. Major banks such as Barclays International, Royal Bank of Canada, and the Bank of Nova Scotia are located in Nevis with excellent banking facilities and wire transfer services.

All 50 American states have adopted Limited Liability Company (LLC) legislation and many foreign jurisdictions including tax-free Nevis, are familiar with this legal entity. The LLC is a hybrid of the limited partnership and the corporation. A limited partnership is comprised of a general or managing partner, and a group of investors or limited partners. The appeal of an LLC stems from the fact that it will be treated as a partnership for tax purposes, while still providing its members with corporate-style protection from liability.

The problem however, as with any United States legal entity(ies), is the application of "fraudulent conveyance rules" for any asset transferred while an existing or potential creditor could possibly under even the most unusual circumstances place a claim, as frivolous as it could be. The U.S. courts have been extremely sympathetic, as they have time and again enforced equity over legal precedence.

Under such circumstances, Nevis legislation would treat the conveyance as a fair market value exchange, which would not be caught by Nevis laws on fraudulent transfers.

This dilution strategy can provide additional protection of the debtor-member’s assets. Under this strategy, other existing members would undertake to contribute proportionate shares to the LLC at some future date. This would leave the debtor-member with a minority interest in the LLC, even though he or she contributed all or most of the LLC’s present assets.

In the United States, the courts may, based on case law, say that such transfers impair the creditors and is therefore equivalent to a fraudulent conveyance.

An additional advantage of the LLC is that the only remedy available to the creditor of a debtor-member is to obtain a charge against the member’s interest in the LLC.

This charge would give the creditor certain rights to the profit or liquidation proceeds of the LLC, but would not entitle the creditor to seize the LLC interest of the debtor-member.

A properly engineered Nevis LLC will delegate all important duties to the managing director, who acts in a similar capacity as a managing "member." An operating agreement would require the unanimous consent of all the members in order to replace the managing director. A creditor would not, therefore, be able to obtain a court order to force the replacement of the managing director.

Common to all Foreign Limited Liability Companies (FLLCs) and Foreign International Companies (IBCs) are the dedication to business use outside the incorporating island jurisdiction. Bearer shares are permitted in some jurisdictions, one person may act as the sole shareholder/director/officer and does not have to reside within the country of jurisdiction. "Bearer Shares" means he who owns the shares (undisclosed) owns the company. Shareholder meetings, corporate records, accounting records need not be kept within the country of jurisdiction. It’s entirely possible that the identity of the shareholder/director/officer may never be disclosed to the government or any potential creditor.

A secondary reason why noted people like Michael Jackson and others do business using foreign legal entities in tax haven jurisdictions is for the unbending asset protection and wealth preservation and uncomplicated legislation. Creditors and their very clever contingent fee lawyers cannot seize, lien or investigate bank records in tax haven jurisdictions due to strong bank secrecy laws. All of the largest banks in the world have to go through the local courts. Judgments are not enforceable in non-United States jurisdictions. U.S. contingent fee lawyers and their clients have a significant jurisdictional problem: only citizens of the tax haven jurisdiction can practice law. U.S. lawyers or their clients will have to hire a local law firm and pay up-front legal fees, post bonds, pay court costs, and pre-pay other expenses to pursue their claims. Generally speaking, foreign-generated claims/judgments are frowned upon by the local authorities.

While International Business Companies (IBCs) and offshore trusts are still preferred by planners, The Nevis Foreign Limited Liability Company is potentially the strongest asset protection devise that can be implemented, even under the creditor’s very nose and still avoid "Fraudulent Conveyance."

If you have any additional questions, feel free to contact me.

We create liquidity by exploring advanced solutions to your problem of wealth.

“Information” is NOT “knowledge.” Our operating strategy is to leverage our collective knowledge and resources providing you with competent multi-dimensional financial engineering strategies, designed to protect your assets from potential frivolous lawsuits, preserve your wealth by recapturing lost tax dollars, defer capital gains taxes, reduce taxes on your income streams, eliminate probate and estate taxes. Finally, we provide tax efficient wealth transfer to your next generation.

EXECUTIVE SUMMARY:

Uncompromising, Alternative & Exceptional Multi-dimensional Estate & Trust Financial Planning Services

We provide the following services for a pre-determined fee, tailored to your specific financial goal(s):

• The ULTRA TRUST®
• The VERTEX TRUST®
• The MEDALLION TRUST®
• Limited Liability Company – Domestic LLC or Foreign LLC
• Family Limited Partnership
• Family Limited Liability Company
• International Business Company (IBC)
• International Insurance Company
• International Asset Protection Trust
• International Bank Account
• Captive Insurance Company wrapped around hedge-fund
• §157;501(c)(15) UNADVERTISED special Tax-Exemptions for small and closely held profitable businesses
• §501(c)(9) U.S. Voluntary Employee Benefit Association (VEBAs) – U.S. Congress Legislated Tax-Reduction Loophole for any profitable small or closely held business
• IRA and Pension “TAX-TRAP” required distribution – TWO Simple but COMPELLING financial solutions to drastically reduce taxes on your qualified pension or IRA rollovers of $500,000 or more
• Innovative Engineering to Taxable Stock Options, income streams, or other spectacular “once-in-a-lifetime” financial gains
• Limited Partnership (Domestic or Foreign)
• Class “A” Foreign Bank within 8 weeks of approval

Call me at (508)429-0011 if you have a complex financial goal. One size does not fit all.

Advanced solutions you probably currently do not have:

• Deferred Capital Gains Taxes on any highly appreciated asset(s). Minimum gain required: US$500,000 short term; $1 million long term. Qualifying assets: Sale of your highly appreciated stocks, bonds, real estate, your business, notes receivables at least 2 years old or any highly appreciated asset(s).
• Deferred Income Taxes for highly compensated planning on your salary or any 1099 compensation. Minimum excess cash required US$150,000. We can possibly re-engineer your “income stream” to fit this mold: salaries, commissions, bonus, consulting fees, finders fees, patents, royalties, rental income, business income, day trading.
• Elimination of “strictly voluntary” probate and estate taxes

Don’t blame your accountant. We specialize in tax-deferred, wealth preservation strategies. Financial engineering, with a twist. How many attorneys and accountants could expound on such divergent concepts as: VEBAs, ESOPs, closely-held or self-employed employee leasing, transfer pricing regulations, CFC regulations, Foreign Sales Corporations (FSCs), offshore asset protection, small insurance companies, shared appreciation, equity stripping, charitable support organizations, private foundations, Section 1031 transfers, Section 1035 transfers, offshore foundations, private annuities, etc.

Tax Traps: An incompetent advisor will cost you more than just money. Make certain that the person you hire is competent and familiar with such matters.

Client profiles: Successful high net worth entrepreneurs, investors, entertainers, senior executives, key employees, industrialists, physicians, inherited wealth, highly compensated individuals, and others with commercial rights to income streams seeking to protect their wealth, eliminate frivolous lawsuits from predators and their contingent-fee lawyers. We can reduce your tax liabilities by using good legitimate, logical, and suitable methods of tax-deferral, relying on law and not secrecy and by planning and thinking ahead (out of the box).

“The avoidance of taxes is the only intellectual pursuit that carries any reward.” — John Maynard Keynes

“It’s fiercely competitive out there. In order for you to survive, you must be flexible, learn to restructure, outsource, downsize, subcontract, become lean, agile, quick, and form new alliances.” — Rocco Beatrice, CPA, MST, MBA

® Registered Trademark, Estate Street Partners, LLC.

The Dreaded Phase-In of the 2001 Tax Act has increased your need for Estate and Gift Tax Planning. see table below

A TRUST is nothing more than a private CONTRACT.

The purpose of a TRUST is to create an “Artificial Legal Person” to hold, preserve, and manage your wealth for the benefit of your heirs.

The Medallion Trust®

(Registered Trademark of Estate Street Partners, LLC)

In anticipation of congress making additional changes to the estate tax and gift tax rules, the MEDALLION TRUST® has been financially engineered to take advantage of your “legal exceptions/exemptions loopholes” – by claiming your tax exemptions, now!!! You can give away up to $1,000,000 of your wealth this year ($1,000,000 for the year 2002 to 2009, and back to $675,000 in 2010 (see table below). NOTE: The Dreaded Phase-In of the 2001 Tax Act has increased your need for Estate Tax and Gift Tax Planning.

By “GIFTING” your assets to the MEDALLION TRUST® and by filing IRS Form 709 (United States Gift and Generation-Skipping Transfer Tax Return) you can claim your unified credit against taxes that would normally be paid by your estate. Thus, for the year 2006 you and your spouse each can “GIFT” up to $1,000,000 ($2,000,000 combined) of your wealth without incurring any tax liability. (For the new Tax Act, see below)

Tax Neutral

There’s absolutely no downside risk with the MEDALLION TRUST®. By engineering your assets around “legal exceptions and tax exemptions” you can avoid unwanted taxable results by claiming your loophole, now!

• ESTATE – The Fair Cash Value of anything (in your name) on the date of your death.
• ESTATE TAX – Anything in your estate (in your name) is taxable up to 55% with small reductions under the new Tax Act of 2001. Anything NOT in your name, is NOT taxable.
• PROBATE – Anything in your Trust, avoids probate. Anything NOT in your Trust, goes to probate, with or without a will.
• WILL – A listing of your wishes to be executed on the date of your death. A will does not avoid probate.
• TRUST – An “artificial legal person” created by private contract.

Congress: “Death and Taxes”

Various tax proposals were being bandied about, including House Ways and Means Chairman, Bill Archer, who said that he was “pushing” to “g-r-a-d-u-a-l-l-y phaseout” the death tax within the next 10 years. (The word “gradually” has been emphatically stretched out.) “Death by itself should not trigger a tax” said Chairman Archer. The Dreaded Phase-In of the 2001 Tax Act has increased your need for Estate Tax and Gift Tax Planning. (see table below)

The federal government has done all it can to ensure they become your largest “heir” by collecting estate taxes from 37% to 55% on 100% of your wealth. The 2001 Tax Act stretches out a small reduction but not eliminated. Only Japan has a higher rate of estate taxes at 70%. Germany takes a maximum of 40%, while Australia and Canada, take nothing.

“I believe, we all should pay taxes with a smile. I tried, … but they wanted cash.”

-anonymous, The Penguin Dictionary of Humorous Quotations

Add it all up!!! Federal tax, state tax, probate fees, legal fees, accounting fees, appraisal fees, administrative and executor fees, and etc. fees; it could easily cost you 70 to 80% of you hard earned estate. You can avoid these unwanted results.

Some statistics on death & transfer taxes:

• 13 times in 25 years, congress has changed the rules. Congress is always tinkering with the “Death Transfer Tax.”  They believe, they know better than you, how they should spend your money; before and after your death.
• 43% federal death tax rate or $2,170,250 owed by a California resident who died with a $5,000,000 estate, plus an additional 10% payable to the state of California. (source: CA-Probate.com)
• 70% – percentage of Americans who die without a will. (source: Wealthcare.com)
• 35% – the percentage of widows aware of the 55% federal estate tax.
• 60% to 85% – the percentage of gross household income that you will need for your retirement to sustain your current lifestyle. (source: Wall Street Journal)
• $23,500,000,000 – the amount of tax dollars collected from 1998 estate tax returns filed. (source: US Treasury Department)

The MEDALLION TRUST® was meticulously crafted and specifically engineered to take advantage of your “Gift” and “Estate Unified Tax Credit.” This legal exception/exemption (LOOPHOLE) is presented in the table below.

The New 2001 Tax Act:

1 – OLD LAW – this is the old law where the exemption amount that could have been gifted per person and not subject to a gift tax or estate tax.
2 – ESTATE TAX – in effect 2002 and thereafter. This estate tax exemption is the amount that may be exempted if you die in that year.
3 – GIFT TAX – in effect 2002 and thereafter. This gift tax exemption is limited to an individual’s lifetime total of $1 million.
4 – ESTATE TAX MAX – the maximum percentage of estate tax

YEAR	OLD LAW EXEMPTION (GIFT & ESTATE TAX)1	ESTATE TAX EXEMPTION2	GIFT TAX EXEMPTION3	ESTATE TAX MAX %4
1999	$625,000	N/A	N/A	55%
2000	$675,000	N/A	N/A	55%
2001	$675,000	$675,000	$675,000	55%
2002	$700,000	$1,000,000	$1,000,000	50%
2003	$700,000	$1,000,000	$1,000,000	49%
2004	$850,000	$1,500,000	$1,000,000	48%
2005	$950,000	$1,500,000	$1,000,000	47%
2006	$1,000,000	$2,000,000	$1,000,000	46%
2007	$1,000,000	$2,000,000	$1,000,000	45%
2008	$1,000,000	$2,000,000	$1,000,000	45%
2009	$1,000,000	$3,500,000	$1,000,000	45%
2010	$1,000,000	$0 (repealed)	$0 (repealed)	55%
After 2010	$1,000,000	$0 (repealed)	$0 (repealed)	55%

If you know the year you’re going to die you may be able to maximize your estate and gift taxes.

CONGRESS is always tinkering with the “Death Transfer Tax” by eliminating, reducing your legal exceptions loophole, or who knows? Why take this unnecessary risk? You can avoid these unwanted results. There’s NO downside to implementing your MEDALLION TRUST®. The Dreaded Phase-In of the 2001 Tax Act (presented in the above table) has increased your need for Estate Tax and Gift Tax Planning.

The new Tax Act created two layers:

One for the transfer of your wealth at death;

The other for how much you can give away in your life-time.

Can you trust them?

You can avoid these unwanted results with the MEDALLION TRUST®

The MEDALLION TRUST® is designed to LOCK-IN your LOOPHOLE without any downside risk.

• If your exclusion goes up you merely add additional assets to your MEDALLION TRUST®
• If your exclusion is reduced or eliminated, you have LOCKED IN your LOOPHOLE.

Additional benefits of the MEDALLION TRUST®:

• Income Tax Neutral – absolutely no downside to all “income tax” benefits from underlying asset(s), i.e. you receive deductible real estate tax, mortgage interest on your form 1040.
• Defers Capital Gains Taxes on Real Estate (under certain conditions). Contact us for more information.
• Eliminates the expensive, time consuming “Probate Process” that could take years and consume your wealth.
• Eliminates Estate Taxes and Legal Fees in settlement of your hard earned estate

HOW DO I GET A MEDALLION TRUST®?

1. Your TRUSTEE which could be your best friend, lawyer, accountant, … any individual you select will set up:
   “The —Name— MEDALLION TRUST® under the laws of your state.
2. You “GIFT” your private residence or any other valuable assets(s) at Fair Market Value, to:
   your MEDALLION TRUST®
   Note: your Non-Taxable gift(s) are subject to your legal loophole amounts (see above).
3. You and your spouse each will file a “Gift Tax Return IRS Form 709” for the value of the asset(s) gifted to:
   your MEDALLION TRUST®
4. A checking account is established in the name of your trust with power of attorney granted to you or your spouse (as the attorney in fact). All your expenses are paid through your MEDALLION TRUST®

What’s the difference between an UltraTrust® and a Medallion Trust®?

Features/Benefits	the ULTRA TRUST®	the MEDALLION TRUST®
Purposed Tax Law Changes: Twelve times in 24 years – the number of tax overhauls. Tightenings for some; headaches for all. Congress is always tinkering with the idea that they know better than you about where your money should go.	TAX NEUTRAL the ULTRA TRUST® was meticulously crafted to hold your primary residence and all your other significant assets with total positive income tax benefits, i.e. real estate tax and mortgage interest deductions on your Federal form 1040. Under certain conditions it may defer your capital gains taxes. Assets in your trust, avoid probate.	TAX NEUTRAL (same as UltraTrust) In addition, the MEDALLION TRUST® was carefully engineered to take advantage of your Estate Gift Tax Unified Tax Credit Exemption LOOPHOLE. Congress is always thinking of amending, reducing, eliminating and who knows what eles? The MEDALLION TRUST® will freeze your legal loophole. If it goes up, you can add to your trust. If it goes down, you are locked in. It’s specifically engineered for this benefit.
How is the trust funded?	Assets to the ULTRA TRUST® are “exchanged” at Fair Market Value in return for a Private Annuity	Assets are “gifted” at Fair Cash Value to the
Why Transfer your assets in your trust now!	If you put assets in your ULTRA TRUST® now! you will escape Probate and you will NOT pay Estate Transfer Taxes. Your Gross hard-earned estate is taxable up to 55% federal tax, plus your state may also impose a tax.	If you gift your assets to your MEDALLION TRUST® now you will escape Probate and you will NOT pay up to 55% Estate Transfer Taxes. Of significant tax deferral benefit if you gift assets that will appreciate significantly over time i.e. stocks, bonds, real estate, a business, tetc.
Forms filed with the IRS	At initial set-up, none. Thereafter, yearly information return to beneficiaries through K-1 “Information Return”	IRS Form 709, “U.S. Gift Tax Return” is filed with the IRS by April 15 after the gift is made. Thereafter, same as ULTRA TRUST®
Dollar Limitations that can be transferred to the Trust	UNLIMITED NO DOLLAR LIMITATIONS ON MONEY TRANSFERRED TO YOUR ULTRA TRUST® (specifically engineered for this benefit)	LIMITED to your Estate Gift Tax Unified Tax Credit Exemption LOOPHOLE: Amount that can be gifted and not subject to a gift tax exemption (per person): 1999 – $625,000 2000 & 2001 – $670,000 2002 to 2009 Congress created two layers. One for Estate Tax, One for Gift Tax. (see table above) The Amount you can give away in your lifetime is capped at $1million. – $1,000,000 2010 and thereafter – $675,000
Assets that can be transferred	Personal residence, other real estate, your cash account, your investment account, your automobile, your insurance policy, your sub “S” stock, your Limited Liability Company, General Partnership interest in a Limited Partnership. All your valuable assets.	Same as the UltraTrust. However, assets transferred to the MEDALLION TRUST® are subject to the above Gift/Estate Tax Unified Credit dollar limitations. Note: If the credit goes up, you add to your trust. If the credit goes down or eliminated, you are LOCKED IN.
Asset Protection Wealth Preservation	YES (specifically engineered for this benefit)	YES (specifically engineered for this benefit)
Eliminates the Probate Process	YES (specifically engineered for this benefit)	YES (specifically engineered for this benefit)
Eliminates Estate Taxes	YES (specifically engineered for this benefit)	YES (specifically engineered for this benefit)
Tax Benefits to your Federal Form 1040	YES (specifically engineered for this benefit) All tax-deductible attributes of underlying assets transferred to your ULTRA TRUST® ultimately are “passed through” to your Federal Form 1040.	YES (specifically engineered for this benefit) All tax-deductible attributes of underlying assets transferred to your ULTRA TRUST® ultimately are “passed through” to your Federal Form 1040.
Cost to implement	US$12,500	US$12,500

Click here for Advanced Estate & Trust Planning and Wealth Management

When your VERTEX TRUST® is combined with an international platform, your Domestic Irrevocable Non Grantor Trust, will postpone your capital gains and all income taxes on re-investments. When correctly engineered and implemented by a team of qualified competent professionals, such as Estate Street Partners, the possible results are permanent tax deferral of capital gains taxes, permanent deferral of income taxes on accumulated earnings, elimination of probate, elimination of transfer taxes and inheritance taxes.

VERTEX TRUST® (Registered Trademark of Estate Street Partners, LLC)
“Knowledge” is our most important “product.”