Raoul and Maria decided that they would need to migrate to another country. In the meantime, they set up a New Zealand foreign trust. They transferred their investments to the trust.
The trustee of this trust was a New Zealand resident company which held the investments for the benefit of Raoul and Maria. Those investments were now out of the reach of Raoul and Maria’s home country. They were not taxed under New Zealand law as the investments were held in bank accounts outside New Zealand (but owned by the New Zealand trust). Not only was Raoul and Maria’s nest egg safe, it had no liability to pay tax anywhere, allowing wealth to accumulate much faster than would otherwise be the case.