Why are the assignment companies located in the country of Barbados?
First off, most people are alarmed simply when reading the name “Barbados”. To the untrained eye this is alarming because of the abusive tax shelters used in the past 15 years that utilized countries such as Barbados. For one, the Structured Sale is not a tax shelter. Two, it is not the country of Barbados that should be labeled with this negative connotation. The abusive tax shelters used to avoid taxes all together have abused the tax relationship that the U.S. and Barbados have formed and given the country a bad name. These assignment companies are located in the country of Barbados for one reason. To ensure that 100% of the annuity premium funds are actually used to purchase the annuity. For instance, if these assignment companies were located on the U.S. mainland, the premium funds sent to the assignment company for the purchase of the guaranteed annuity would be taxed by the IRS as income for the assignment company. As you can imagine, the assignment company cannot pay this tax o
