In TNT 

LC: How Private Banking Clients Protect their Bank Accounts in the Bank’s Trust Department

I am reposting this again to remind everyone, FDIC is not important if your funds are in the bank’s trust department.

Dear All TNT Dinar & Open Mic Family Members;

I would like to inform everyone about my experience as a current private banking client of Wells Fargo Private Bank.

I would like to put to bed about possible banks failures after you get your blessing from exchanging your currencies. You need to ask yourself this question, why do the wealthy customers don’t worry about their investments disappearing out of their accounts.

The reason they don’t have that concern is because their investments in the “bank’s trust department” is considered “off  balance sheet” and therefore these investments are not owned by the bank and not reportable to Wall Street. Additionally, the wealthy customers’ investments are titled and owned by them personally or titled and owned by a trust or entity you control.

So, this is where a third party comes in to play. My private bank (Wells Fargo Private Bank) use Depository Trust Company (DTC) one of the world’s largest securities depositories that will be the clearinghouse and safekeeping for my transactions.

Now you say, what if something happens to Wells Fargo Private Bank. Well, since they don’t own your investments, you only need to contact Depository Trust Company to now instruct them to name a new private trust bank (i.e. Northern Trust, U.S. Trust or bank’s trust department).

Just remember, the private trust bank’s trust department is only a fiduciary that help manage your investment needs.

Please review the further detailed info on the Depository Trust Company that holds trillions of dollars of securities in their custody.

Furthermore, my private banker explained to me that generally his multibillion and multimillion dollar clients don’t have Excess Deposit Insurance because the bank don’t have title to the investments to be a part of a bank failure.

Finally, this will not protect you from losing money on bad investments. Private trust banks generally carry insurance for your protection if they put you in an investment without careful due diligence and you lose your money as a result of their recommendation.

This is why everyone should relax and make sure you put your funds in a bank’s trust department to remove this concern. That’s what the wealthy and the 1% do. We do not need to reinvent the wheel.

Good luck to everyone and I hope that I helped ease everyone concerns



Shybaby:  Offshore Versus Domestic Asset Protection

Offshore Asset Protection

There has been much publicity over the last few years on the erosion of Swiss banking secrecy and the IRS offensive against “secret” foreign accounts, including jail sentences for Americans with non-compliant accounts at UBS and HSBC.

Against this background, it is important to question whether protection of assets by moving them offshore is still viable.  The answer is that offshore asset protection is not only still viable but remains extremely effective against civil creditors, provided that the offshore structure is tax compliant.

Americans can legally invest in foreign markets, own foreign real estate, own foreign businesses, and deposit their assets into foreign bank and brokerage accounts, provided that they disclose their foreign accounts to the U.S. government and pay U.S. tax on foreign income.

Placing assets in a foreign asset protection trust is legal and effective against future creditors.  At the same time, it is crucial to recognize that while the assets are outside of the reach of creditors, they are not outside the reach of the IRS.  Settling a foreign trust, for example, is legal and will safeguard your assets from creditor attack, but the IRS still considers trust assets to be your assets, and you will be obligated to declare and pay income tax on any gains in the foreign trust.  Going offshore for asset protection is a legitimate strategy; going offshore to hide income from the IRS is foolish.

There exist effective, tax compliant offshore strategies to accomplish tax minimization.  These strategies utilize tax-favorable treatment of foreign annuities and foreign life insurance.  Preferential tax treaties between the U.S. and foreign countries are also utilized for tax minimization.  Asset protection is also a byproduct and additional benefit of these offshore tax strategies.

Domestic Asset Protection

In other cases, domestic asset protection is more appropriate than an offshore approach.

Domestic asset protection can be totally effective if implemented by individuals with no current claims against them.  Domestic asset protection is also usually used to protect real estate which cannot be moved offshore.

As an added bonus, some structures for asset protection, like the family limited partnership, also offer excellent tax minimization and estate planning benefits.

The family limited partnership is probably the most beneficial structure available for wealth preservation via asset protection, estate planning and tax minimization.

Who Needs Asset Protection

People sometimes have the misconception that in order to engage an asset protection attorney, they need to have significant wealth.  In fact, many different people, of diverse backgrounds and all levels of affluence, already protect their assets.

For instance, young entrepreneurs seeking to protect their assets from the risks of their next business ventures; small business owners trying to discourage “deep pocket” or “nuisance” law suits; retirees seeking to preserve their assets for their children and grandchildren; people seeking to protect their home from mounting medical bills; and high net worth individuals with various assets and holdings (personal and business) should consider protecting their assets.

All types of people, with all types of assets, need asset protection.  You need asset protection if:

  • you are facing a current or expected lawsuit
  • you are in a profession with a high degree of liability (real estate investor, real estate developer, landlord, doctor, lawyer, financial advisor)
  • new laws may impact your business or create new liabilities (e.g., the Fair Labor Standards Act and the proposed “sweat” law in New York state)
  • you are a debtor and/or a guarantor
  • you face a potential tax or other government liability
  • you have accumulated, or are about to receive, significant wealth (e.g., inheritance; investment or business success; vesting event; business buy-out, etc.)
  • you (or your children) are going to get married or divorced
  • you are concerned about the financial viability of your business

Asset protection is an effective legal strategy that can safeguard wealth and assets from attack by future, unsecured creditors.  Proper asset protection is the best pre-emptive defense, and often discourages lawsuits in the first place.

Proper asset protection strategies offer peace of mind and provide the protection needed to withstand the inevitable attack.

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