In a Forbes study of 433 people, whose wealth ranked between $1 million to over $10 million, 56% of women and 36% of men said they had hidden or protected assets. Those with more than $10 million were three times as likely to have hidden or protected assets. Yet, very few of these asset-hiders had obtained a pre- or post-nuptial agreement to shield those assets. How do they protect their wealth?

Some millionaires practice “wealth preservation strategies” with trusts set up in offshore accounts to keep creditors, spouses, ex-spouses, and others from finding their assets.

“Offshore asset protection trusts (OAPTs), are popular protection vehicles because once established, OAPTs are nearly impossible to collect against, even with a valid judgment from the U.S.,” states Marlene M. Browne, Esquire.

In order to hide assets, some travel to the international tax havens of their choice to set up an account, but do so by using a second passport. Others simply arrange for a debit card attached to an offshore bank account established over the internet. This arrangement allows for traceless, tax-free spending and depositing.

However, the down side of this strategy for the asset-hider is that the U.S. requires full disclosure of any movement of money offshore. This means there should be a legal trace of the transfer of money in their taxes. Be wary of those who will only supply part of their taxes when subpoenaed; they are probably leaving out the forms that have hidden assets.

“If you think you might be dealing with an offshore issue in your life, scrutinize your partner’s 1040, Schedule B, carefully. Also, make sure you request and inspect pertinent tax forms, e.g., Form TD F 90-22.1; Form 56; Form 709; Form 926; Form 3520; Form 3520 and Customs Form 4790,” states Marlene M. Browne, Esq.

There are plenty of opportunities to hide money in the U.S.

Search for Hidden Assets in:

• Trusts
• Family-limited partnerships
• Holding companies
• Charitable Foundation
• Limited Liability companies
• Equity Reduction Plans (ERPs).

With an ERP, the owner remains on title to the real estate or business, while a third party depletes its value, typically through a bogus mortgage or other arrangement where the asset is used as collateral or security for a debt.

If you need help in uncovering hidden assets, A.M. Golden Accountancy Corporation offers a free initial consultation. The majority of our clients are located in San Diego, Orange, Los Angeles and Riverside Counties; however, we serve clients outside this area as well. To speak with Mr. Golden immediately, please call his direct line by dialing (760) 634-0990.  If you’d prefer, you may also send an email: al@amgolden.com

Mr. Alvin Golden specializes in providing expert witness, litigation support, income and estate taxation, comprehensive business valuation, forensic accounting, complete CFO and controller services. He is a Certified Public Accountant (CPA), Certified Valuation Analyst (CVA), a Diplomat of the American Board of Forensic Accounting (DABFA), Certified in Financial Forensics (CFF), and is a member of the American Institute of Certified Public Accountants, the National Association of Certified Valuation Analysts, and the American College of Forensic Examiners.