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Adding a Trading Account to your Offshore Trust or Foundation
You can have your Offshore Trust or Foundation open a
Trading Account and use it the same way you
would use one yourself with your local broker. This enables you
to recommend trading activities to your Trust/Foundation - who will then
typically perform them as you request. This is a simply way to
invest funds from your Trust/Foundation in stocks and bonds. Maybe also
currencies, precious metals, commodities - whatever your
Trustee/Council has organized.
You should inquire
with your Trustee/Council how this is all set up.
- With most Trustees/Councils, you can request a Trading Account opened for your Offshore
Entity anytime, also at the time of establishing it.
- You transfer money to and from this account by means
of a Letter of Wish (LOW).
- For your trading to be efficient, you must have access
to on-line trading through your
Trust's broker - technically, you send a LOW to the Trust/Foundation about a
trading recommendation. In reality, the Trust/Foundation will take
action (or decline) almost instantly, so you will not really feel
having the Trust/Foundation between you and the broker...
- The broker charges the Trust/Foundation a nominal trading fee for each
transaction carried out, just as you are used to from
you current broker... (expect such fees to be around
$10-20 per transaction).
- All transactions are carried out by and for the Trust/Foundation,
so there is no liability and no obligations on your part in
regards to taxes, and no need for you to report the
transactions to anybody, your own government included.
Setting up a Trading Account for your Trust/Foundation is
fairly simple. You should not have to pay more than $500 for
access to an on-line trading program.
Other than this, you only need to pay the
individual transaction fees to the broker.
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