US persons are amongst the most heavily taxed in the world.
Unlike all other nationalities, US persons do not generally benefit
if they go and live in lower taxed countries as they continue to be
fully liable to US tax on their world-wide income and capital
gains. However, contrary to popular belief, there are ways in which
US persons can legally and legitimately mitigate their taxes.
The Rabbi Trust was so named because one of the first such
arrangements approved by the IRS was developed by a synagogue for
its Rabbi.
The Employer acts as the settlor of a trust and pays into that
trust a proportion of the Employee's agreed compensation.
The Employer would, subject to local legislation, get a
deduction for the payment into trust but those monies would not be
taxable in the U.S. on the Employee while they are held in trust
and, as long as the trust is correctly structured and managed
offshore, those monies could also be reinvested on behalf of the
Employee and rolled
