Offshore Trusts

In basic terms, a Trust is a legal private agreement (“Trust Deed”) between the person who place the assets in the Trust (“Settlor”) and the individual or corporation entrusted with the protection, management and ultimate distribution of the assets (“Trustee”) for the persons entitled to benefit from the capital assets and/or income held in the agreement (“Beneficiaries”).

The person transferring assets is called the Settlor or Grantor; the person receiving the assets in trust is called the Trustee (a licensed company recommendable) and the recipients of the assets and/or interests are the beneficiaries.

When a trust is established in a suitable offshore jurisdiction, provided that residents of the offshore jurisdiction are excluded from receiving benefit from the offshore trust, then there will be no local taxes applicable to the assets and income of the trust.

Offshore Trust Solutions for Individuals

A trust is the solution for individuals who:

1. Want to preserve their wealth against uncertainty, political, economic or family.
2. Want to transfer wealth to their heirs in a tax-efficient manner without estate probate or court procedure.
3. Want to transfer wealth to their heirs in accordance with their wishes and not in accordance with the laws of the country where they live.
4. Want to consolidate the ownership of assets owned throughout the world in one location.
5. Want to minimise or eliminate estate taxes arising on the death of the Settlor.

BENEFITS:

Whilst a Trust can have many benefits, mainly these fall into one or more of the following categories:

Taxation
The Trust is relieved entirely from local taxation.

Asset Protection
The Settlor is able to provide long-term protection to his/her assets outside the country of his/her residence ordomicile free from the danger of expropriation by government agencies. The assets are held in the name of the Trustee or its nominees and so worldwide central control is obtained. The Settlor can advise on tthe administration of the assets up to his/her death (including this in the Trust Deed or in the Letter of Wishes). The Settlor will also advise who is to benefit and in what proportion after his/her death. These aspects are particularly attractive to residents in countries that have strict laws on inheritance and can enable payments to be made to people who might have to be excluded from a will made in the Settlor’s homeland.

Anonymity and flexibility
The Trust Deed is a confidential document. No information whatsoever of its contents is available on public records. Flexibility may be provided by including in the Trust Deed certain special clauses, i.e. the possibility of revoking the Trust, allowing the removal of the Trustee and the continuation of the Trust in another jurisdiction should it be thought that worldwide political developments make this a prudent precaution.