Trump’s Election Sends Wealth Offshore
Thursday, December 8th, 2016
Donald Trump's successful campaign clinched him the presidency, but his 'America First' foreign policy has raised concerns in the global community and among the affluent Americans discouraging investors from keeping their wealth in the U.S. It is not unusual for governments with a nationalist bend to restrict the outflow of wealth.
A lot of our wealthy U.S. clients have contacted us about moving wealth offshore. Some have expressed concerns about the uncertainty of the Trump presidency, the future of the U.S. economy, possible currency controls, prohibitions against foreign investment and currency risks. These clients are looking to diversify their wealth out of the U.S., access foreign markets, diversify their currency portfolios and set aside a secure box of wealth beyond the reach of the U.S. government.
Analysts speculate that trade and investment will drop sharply because Trump's proposed foreign policy will place a strain on alliances and trade agreements, leading to instability. An unstable economy makes investors fearful.
The fear of economic and financial instability is the primary reason for the flight of capital out of the U.S. Clients can establish offshore wealth holding structures like foreign trusts and private foundations, and set up offshore bank and investment accounts ensuring that all offshore structures are protected from creditors and anonymous to the greatest extent possible, without running afoul of the tax laws and government mandated disclosures.