How To Protect Assets and Avoid Taxes
How To Protect Assets and Avoid Taxes
Get Lauded As A Philanthropist Like Mark Zuckerberg
By Jeff Berwick
Mark Zuckerberg of Facebook posted a “Letter To Our Daughter” stating that he would give 99% of his Facebook shares to the Chan Zuckerberg Initiative “to advance human potential and promote equality for all children in the next generation.”
The New York Times, perhaps the most economically ignorant tabloid in the world, headlined, “Mark Zuckerberg Vows to Donate 99% of His Facebook Shares for Charity.”
Countless people across the webisphere lauded Zuckerberg as a caring philanthropist who was just giving 99% of his wealth away.
In many ways what he did was philanthropic but not for the reasons that the great majority of people think.
Before we tell you why, here is what he did. He put 99% of his assets into a Limited Liability Corporation (LLC) controlled by himself.
It’s a smart move on many levels. He protects his assets from legal attacks (which are rampant and out-of-control in the US). He also gains tax benefits in that any gains made by the LLC are treated differently from his personal gains.
Depending on how it is structured (details aren’t clear) he may even be able to write-off any “donations” to the trust for a massive tax-break.
And, he also deftly avoids the estate tax (aka. death tax – yes you even get taxed for dying in the US) for his daughter, which at 40% should mean a net-savings to his daughter of over $20 billion if she is the recipient of the LLC upon her parent’s passing.
This is why it is philanthropic. Philanthropy is defined as ” goodwill to fellow members of the human race; especially : active effort to promote human welfare.” And by shielding his assets he is helping to protect his assets. Those assets, or capital, can then be used to invest. Savings (capital) and investment are the only way to create a wealthier, and healthier society.
As well, by shielding tens-of-billions of dollars from tax (aka. extortion/theft) he is keeping a large amount of money out of the hands of the largest terrorist organization in the world today, the US government. This literally saves lives.
Using LLCs To Shield Assets And Minimize Taxes
Almost any wealthy person uses LLCs and offshore trusts to shield their assets and to gain tax advantages. Warren Buffett, Bill Gates, Mitt Romney and countless others.
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