Is a Foreign Grantor Trust for you?

by Mogens Eliasen

Mogens Eliasen - the author of this article
on Foreign Grantor Trusts

Obtaining financial freedom through trusting other governments to keep your personal data confidential is like asking a fox to guard your chickens. Sooner or later, International treaties will jeopardize your privacy. Governments of small countries can easily be put in a situation where they have much more to win by sacrificing your privacy than by honoring their promises to you.

The only safe protection you have against this is that you set up your offshore entities in such a way that you do not have to rely on any government at all… It begins with a Foreign Grantor Trust.

What is a Foreign Grantor Trust?

A Foreign Grantor Trust (FGT), when set up through a non-US service provider is an artificial person, set up in accordance with law in another country. It can and should be set up in a way that leaves your name off any public record and government registration, and it poses no tax liability for you in your own country - if you use it right.

The Trust owns itself and is managed by a Trustee who accepts you as a client and allows you to furnish input in regards to what activities to engage the Trust in. With such a financial vehicle, you can legally do things (and abstain from doing things) that would make you break the laws of your own country if you tried to do the same yourself, as a person and citizen of your country.

You are not the Beneficiary of this Trust. Neither are you the Grantor or Settlor. And you are not the Trustee, and not the Protector. In other words, in legal terms, you are nothing, as far as this Trust goes... And you can truthfully sign to that effect on your tax return, unless you later engage in action that jeopardizes this.

Also, the FGT is not "an account" for you. It is not something you own, like a bank account or a business.

This is all great news because it leaves you with no liability in regards to your government, as far as this Trust and its establishment goes. This makes a FGT an unsurpassed tool for asset protection, as long as the assets are generated by the Trust, not donated to it by you. This is not to say that a FGT cannot be used to protect assets that currently are in your ownership. However, getting them transferred in such a way that you remain free of liability for those assets takes more than a simple "transfer of ownership" (=donation or "settlement", as the common term is), as you would typically do with a traditional Trust - for which you retain the tax liability for the assets 100%.

Securing yourself against being conned into a scam...

You do not control a FGT by means of any written documents that will nail you, as far as liability goes - and oblige you to report about it to your government or your personal creditors or enemies. You control it because there is a stable win-win situation established between you and the Trustee through the set-up as well as through the way the Trustee manages the Trust by reversing crucial controls to you - without reversing the ownership or the liabilities.

In order for you to escape your government's control, you have to use different tools than what the government uses. This takes a different paradigm and a different way of thinking, as most people have been taught for a lifetime that control is obtained through ownership. The government just comfortably fails to teach you that the control that is obtained through your registered ownership of assets is the government's control over you! Those assets are nothing more than collateral for your compliance with its tax demands...

A FGT makes it possible for you to "go offshore" in complete privacy. And privacy you need, if you want freedom. But privacy alone is not enough. You also need to be sure that the operations and financial transactions you initiate offshore will not backfire and serve you a personal tax liability. That's why you cannot set up your FGT in such a way that it becomes "yours", by traditional legal means! If you want control by getting "ownership", "power-of-attorney", or other documented, signed court-enforceable rights to dictate the actions of the Trust, you are asking for tax liability for it! There is no compromise possible on that.

But you can still, for all true practical concerns, remain in control! If you want to understand how you can accomplish this, you should check out this e-book: "Trusting the Trustee...?" where this concept is explained in the detail you need to understand in order to feel comfortable with it. For now, just accept that this is possible for those who want to learn it.

Asking the wrong questions...

When starting their due diligence on "going offshore", most novices learn from public sources that they first of all have to find "a politically stable jurisdiction with a solid financial infrastructure".

This is like starting your vacation buy looking for suppliers of wheels so you can build a vehicle...

It would make more sense to buy a functional, complete vehicle from a dealership that contracts with a reliable manufacturer....

The truth of the matter is that the specific jurisdiction where your FGT gets established simply doesn't matter. Except for this: you want it in a country where you do NOT want to invest!

So, what about this "great advice"? Sorry to disappoint you, but the truth is that it addresses a completely irrelevant problem and thus only illustrates the incompetence of the person who gave it to you...

Why you would do this?

A FGT is for people who

  • trust their own ability to create wealth if they can do it without government interference;

  • want to conduct their financial affairs in complete privacy and without risk of snooping from any outside parties, including government, banks, credit bureaus, private detectives, etc.;

  • want to create and control assets in a fully protected, tax-free environment;

  • want to enjoy the full use of those assets as they see fit, including daily personal use of them;

  • are willing to invest first in their personal education, second in the right tools, and third in the specific money-making programs they believe can make them wealthy;

  • accept the fact that assets already owned by them cannot be protected without incurrence of additional costs and hassle, if the full benefits of the FGT are to be maintained.

Honestly, a FGT is not for "everyone". It is a very fancy financial vehicle, yet quite inexpensive. Driving it is simple, yet it takes that you learn how to do it, so you fully understand not only the vehicle's properties and limitations, but also the boundaries set by law. It is for people who believe in themselves and trust in their future. It is not for financial dummies that refuse to "think outside the box". It is for the serious novice investor and the home-based business owner. It is an effective tool for privacy - and the foundation for financial freedom. It is NOT something you "just add to your current portfolio" of tools and options. It is the very base for your entire financial planning; in order to get full benefits from it, you have to subordinate everything else to this.

The FGT is not something you consider because you want to add something to your toolbox in order to "cover" or "fix" any current problems. Although it CAN be used for this, you have to realize that transferring asset OUT of your government's current control is NOT going to take place without the government doing everything possible to restrict and sabotage it, and you have to be extremely careful about not crossing the line to crime when doing this....

In other words: the FGT is something you want in order to get rich. You do not need to get rich first - in fact, it will cost you significantly more money to go about it that way, not only in taxes while you grow your assets, but also in transfer costs later. The only way it makes sense is to CREATE your wealth through the FGT. So, when you have big plans for your own future, the FGT is your first and foremost investment. Everything else comes after that, unless you want to prove that you really do not have the slightest understanding of managing finances...

Unless, of course, you prefer to pay taxes on everything you create....


Mogens Eliasen


Mogens Eliasen holds a mag. scient. degree (comparable to a US Ph. D.) in Chemistry from Århus University, Denmark, has an extensive military education in tactics and Intelligence services, and has 30+ years of experience working as business entrepreneur and education planner, and as consultant for small business owners and private investors in Europe and North America. He is a strong advocate of personal freedom, and has published several books and home-study courses on topics related to using International law in order to obtain financial liberty. He publishes a newsletter "The Doggy Bone" containing lots of tips and advice on matters pertaining to personal rights, "going offshore", asset protection, and legal ways of avoiding tax liability.

For more information about Mogens Eliasen, including links to other articles he has published, please .

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Available publications by Mogens Eliasen:

"Making Yourself Financially Invulnerable" - the principles for protecting your assets, in privacy and financial freedom; why "going offshore" works! But it takes way more than "just opening an account"...

"Trusting the Trustee...?" - how you avoid being conned into a scam, and still control assets without ownership and with no liability. This is a must-read for anyone contemplating "going offshore"...

"Eliminating Your Business Income tax" - a simple concept that is used by all multinational companies; now also available for even home-based businesses! The concepts are applicable for any existing business.

"Setting Up Your Business For Financial Freedom" - your "driver's license" for operating offshore financial vehicles! The homework assignments of this course are literally your to-do lists for your due diligence, through establishing your offshore entities as well as getting them structured and organized for your benefit. Nobody should "go offshore" without this knowledge...

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