Private Trusts registration

Our Trusts are specially designed trusts that can effectively protect the Settlor’s assets.

A Trust is a legal device that allows title to – and possession of – property (asset) to be held, used and/or managed by one person, the trustee, for the benefit of another different person or group, the beneficiaries.

These are a few other examples of its possibilities: it can avoid probate and inheritance taxes, invest in all kinds of securities, real estate, cash, futures, bonds, stocks, hold title of any real or personal property, business interests, insurance policies, home, boat, car, pay support in marriage, to elderly, children, medical or educational expenses, etc.

Examples for using a Trust

Trusts can be used for various purposes, and here are some common examples of how they are utilized:

Estate Planning and Wealth Transfer
Revocable Living Trust

This is one of the most common types of trusts used in estate planning. A revocable living trust allows the grantor to retain control over their assets during their lifetime, while specifying how those assets should be distributed after death. One of the main benefits is that it avoids the probate process, making the transfer of assets smoother and quicker.

Example: A person creates a revocable trust to ensure their home, investments, and personal belongings are passed to their children without going through probate.

Minimising Estate Taxes
Irrevocable Trusts

These are used to remove assets from the grantor’s taxable estate, which may reduce estate taxes. When assets are transferred into an irrevocable trust, the grantor gives up control of those assets, and they are no longer considered part of their estate for tax purposes.

Example: A wealthy individual may set up an irrevocable trust to transfer large sums of money or property to their heirs, ensuring that these assets are not subject to high estate taxes upon their death.

Charitable Giving
Charitable Remainder Trust (CRT)

A CRT allows a person to donate assets to charity while still receiving income from those assets during their lifetime. After the person’s death, the remaining assets go to the chosen charity. This type of trust can provide tax benefits, including a charitable deduction.

Example: A philanthropist sets up a charitable remainder trust with some of their investments to continue to receive income from them while donating the remainder to a charity after their passing.

Asset Protection
Asset Protection Trust

This type of trust is created to protect the assets from creditors or legal claims. It can be set up in jurisdictions that have favorable laws for protecting assets from lawsuits or creditors.

Example: A business owner creates an asset protection trust to safeguard personal assets from any potential legal actions or creditor claims related to their business.

Providing for Minors or Young Adults
Minor’s Trust

A trust can be set up to manage assets on behalf of a minor until they reach adulthood or a certain age. This ensures that the minor’s inheritance is managed responsibly and that funds are available for their education, healthcare, or other needs.

Example: Grandparents create a trust for their grandchildren’s education expenses, with the funds being made available when the grandchildren turn 18 or 21.

Spendthrift Trust

This type of trust is used to protect the assets of a beneficiary from their own irresponsible spending habits or from creditors. The trustee controls the distribution of funds to the beneficiary, ensuring they are used responsibly.

Example: A parent sets up a spendthrift trust for a child who has struggled with financial management, ensuring that the child’s inheritance is distributed in a controlled manner.

Trusts for Business Succession
Business Trust

For business owners who want to ensure a smooth transition of business ownership to the next generation or to other stakeholders, a business trust can help. The trust can hold the business’s shares and govern how they will be distributed or sold.

Example: A family-owned business owner creates a business trust to ensure that the company’s shares are passed on to their children or other key individuals, while maintaining business continuity.

Testamentary Trust

This trust is created through a person’s will and comes into effect upon their death. It allows the person to dictate how their estate should be distributed and managed, often for minor children or beneficiaries who may need assistance with managing the inheritance.

Example: A person’s will includes a testamentary trust to provide for their minor children’s education and living expenses until they reach a certain age.

Trusts are versatile tools used in many situations, ranging from estate planning to asset protection, charitable giving, and supporting loved ones. Each type of trust has specific features, so it’s important to tailor the trust to the individual’s specific needs and goals.

Most frequent uses of an offshore Trust

The Trustees aren’t allowed to disclose information about the Trust unless a local court order requires it. But in this can, you can appoint your own IBC as the Trustee, thus full controlling this feature.

Offshore trusts are trusts set up in jurisdictions outside the grantor’s home country, typically in places with favorable legal, tax, and financial environments. These jurisdictions often provide benefits like enhanced privacy, asset protection, and tax efficiency. Here are some of the most frequent uses of offshore trusts:

Asset Protection
Protection from Creditors and Lawsuits

One of the most common reasons for setting up an offshore trust is to protect assets from potential creditors, lawsuits, or legal claims. Offshore jurisdictions with strong asset protection laws (e.g., the Cayman Islands, Cook Islands, or Nevis) offer a high level of security, making it difficult for creditors to seize trust assets.

Example: A business owner facing potential legal actions creates an offshore trust to protect personal assets, ensuring that they are shielded from claims related to the business.

Estate and Succession Planning
Efficient Wealth Transfer

Offshore trusts are often used to facilitate the transfer of wealth to future generations, particularly for individuals who have substantial assets or who live in jurisdictions with high inheritance taxes. An offshore trust can avoid the probate process, providing a more efficient way to pass on assets while reducing the risk of family disputes.

Example: A high-net-worth individual in the U.S. sets up an offshore trust in a jurisdiction with favorable estate tax laws to ensure that their children inherit wealth without being burdened by heavy taxes.

Tax Efficiency
Minimizing Taxes

Offshore trusts are sometimes used to reduce taxes, particularly in high-tax jurisdictions. By establishing a trust in a country with favorable tax laws, the trust may reduce capital gains tax, inheritance tax, or other taxes that would typically apply. However, it’s important to note that tax avoidance must be legitimate and comply with international tax regulations.

Example: An individual in a high-tax country (like the U.S. or the U.K.) creates an offshore trust in a tax-friendly jurisdiction, potentially reducing taxes on income generated by assets held in the trust.

Privacy and Confidentiality
Enhanced Privacy

Offshore trusts are often used to ensure greater privacy for the trustor and beneficiaries. In many offshore jurisdictions, the names of the trust’s settlor (grantor), trustees, and beneficiaries are not publicly disclosed, providing confidentiality.

Example: A wealthy individual uses an offshore trust to maintain privacy regarding the ownership of certain assets or investments, ensuring that the public and media cannot easily trace the ownership.

Diversification and Investment Flexibility
Global Investment Opportunities

Offshore trusts can allow for the management of assets in multiple international markets, which may offer more diverse investment opportunities, better access to global financial markets, and reduced risk by spreading assets across different regions and currencies.

Example: An individual sets up an offshore trust to hold investments in emerging markets, hedge funds, or other high-yield opportunities that may not be easily accessible in their home country.

Avoiding Forced Heirship Laws
Circumventing Forced Heirship Rules

In some countries (particularly in civil law jurisdictions like France, Spain, and many countries in the Middle East), there are “forced heirship” laws, which dictate that a portion of the estate must go to certain heirs, typically children or spouses. Offshore trusts can help bypass these restrictions, allowing the grantor to distribute assets as they choose.

Example: A wealthy individual from a country with forced heirship laws creates an offshore trust to avoid having to distribute assets according to local laws and instead ensures the assets are passed on according to their wishes.

Philanthropy and Charitable Giving
Offshore Charitable Trusts

Some individuals use offshore trusts to fund charitable organizations or foundations. Offshore charitable trusts can offer benefits like tax deductions or exemptions in certain jurisdictions. They can also ensure that donations are managed efficiently across borders.

Example: A philanthropist sets up an offshore charitable trust to fund educational initiatives globally while benefiting from tax advantages available in the jurisdiction where the trust is established.

Protecting Family Wealth
Generational Wealth Preservation

Offshore trusts are often used by individuals looking to preserve family wealth for multiple generations. By establishing a trust, the grantor can set rules for how the trust’s assets are to be managed, ensuring that wealth is maintained and passed down through the generations without being depleted by taxes or mismanagement.

Example: A family business owner establishes an offshore trust to ensure that the wealth created by the business is preserved for future generations and managed according to the family’s values.

Retirement Planning and Pension Funds
Offshore Pension Trusts

Some individuals use offshore trusts to manage pension funds or retirement assets in jurisdictions with favorable laws regarding pension planning. Offshore pension trusts can provide additional retirement income and allow for more flexibility in managing retirement assets.

Example: A retiree sets up an offshore pension trust to manage their retirement funds, taking advantage of the jurisdiction’s favorable laws for pension management and tax deferrals.

Incorporating Family Businesses
Business Succession and Continuity

Offshore trusts can be used to hold shares of family businesses, providing a structure for smooth succession planning. The trust can govern how shares in the business are distributed to family members and manage the continuity of the business after the grantor’s death.

Example: A family-run company is placed into an offshore trust to ensure that the shares of the business are passed down to heirs without disruptions in management, and without the company being divided up.

Elements of a Trust

Settlor or Grantor

The person, company or other entity placing property into a trust.

Trustee

The individual, company, another trust or other entity who receives the property to be managed for the benefit of those individuals, companies, trusts, or other entities named as Beneficiaries.

Beneficiary or Beneficiaries

The individual, individuals, company or companies, trust or trusts or other entities named to benefit from the trust property.

Protector

An independent third party or corporate entity given the authority to perform certain duties with regard to a trust to insure that the wishes of the settlor are fulfilled. The trust protector can be given a limited or expanded list of powers, but be aware that the more powers the trust protector is given, the closer the protector comes to acting in a fiduciary capacity and, therefore, being subject to a fiduciary duty. At a minimum, trust protectors should be given the power to remove and replace trustees. In addition, trust protectors can be given the power to settle disputes among co-trustees or between trustees and beneficiaries; change the trust provisions due to unanticipated circumstances, such as changes in economic circumstances or changes in tax laws; terminate the trust; modify the powers given to the trustee; change the situs of the trust; and correct ambiguities or errors made when the trust was drafted. Under the laws of some states, the trust protector will be able to exercise these powers without the need for court approval, which will minimize the costs incurred in administering the trust.

Trust Document

The Deed or Declaration of Trust – Is the written instrument which details the duties of the Trustee, Names the Beneficiaries and Lists the Property in the Trust Corpus or body of assets.

Privacy of Settlor

The Trustee of a Trust can be any person that is of the legal age who under the laws of respective jurisdiction of incorporation, has the capacity to own and transfer property can be a Trustee.

Documents of a Trust

Trust deed

The beneficiaries’ protection

When incorporating a Trust, we do not include the Beneficiaries in the Trust Deed and you can state who you want to be the Beneficiaries at any time. You simply submit it in the Letter of Wishes.

How to maximize a Trust structure

With this type of structuring, these two entities become most beneficial for estate planning and particularly useful for the avoidance of inheritance taxes, income and capital gains taxes, forced heirship provisions and probate procedures. This can result in very substantial tax and non-tax related advantages which accrues during the lifetime of the Grantor and ultimately provides continuity for the beneficiaries of the Trust as well as a double layer of privacy and long-term asset protection.

In most of these privacy aware jurisdictions as mentioned above, there is no requirement to register the Trust with the government, and the terms of the Trust agreement and the beneficiaries are protected against disclosure, they are not available in public records either. The trustees aren’t allowed to disclose information about the trust unless a local court order requires it.

The main advantage of non public registration is that privacy of the Settlor, so the Trust’s activities and the identity of the beneficiaries are fully protected. Usually, a Trust imposes no tax of any kind on the Settlor, the beneficiaries or in the income or capital gains earned by the Trust.

Furthermore, there is no requirement for the Trustee to file Trust accounts with the local tax authority thus further preserving the confidentiality of the Trust’s activities.

Depending upon the residence for tax purposes of the Settlor and the beneficiaries, it is often possible to make distributions of capital or income from the Trust completely free of tax. In this matter, many reporting requirements are either eliminated or vested in the trustees. Our Trusts are specifically designed Trusts that can effectively protect the Settlor’s assets from attack by erstwhile creditors, thereby preserving the Settlor’s assets for the enjoyment of the Settlor and his/her selected beneficiaries.

Which assets can be held by an offshore Trust?

• Shares and stocks in both quoted and unquoted companies;
• Investment portfolios;
• Real and intellectual property;
• Bank deposits;
• Life assurance policies issued on the life of the Settlor;
• Most other types of asset.

The advantages of an offshore Trust

An offshore trust offers various advantages, depending on the specific goals of the settlor (the person establishing the trust). Below are the primary benefits of setting up an offshore trust:

Asset Protection
Protection from Creditors and Legal Claims

Offshore trusts can provide a high level of protection from creditors, lawsuits, or divorce settlements. In certain jurisdictions, the trust can safeguard assets by making them difficult for creditors to access, especially if the trust is set up in a jurisdiction with strong asset protection laws (e.g., the Cook Islands or Nevis).

Benefit: This is particularly valuable for individuals in high-risk professions (e.g., entrepreneurs, doctors, or business owners) who are concerned about potential legal claims against them.

Tax Efficiency
Minimizing Taxes

Offshore trusts are often used to reduce or defer taxes, especially in jurisdictions that offer favorable tax laws. By establishing a trust in a low-tax or no-tax jurisdiction, a settlor can potentially reduce estate taxes, capital gains taxes, or income taxes on the trust’s assets or income.

Benefit: For high-net-worth individuals in high-tax countries, this can lead to significant tax savings, although it is important to comply with local tax laws and regulations (e.g., FATCA in the U.S. and CRS internationally).

Confidentiality and Privacy
Enhanced Privacy

One of the major advantages of offshore trusts is the increased privacy they provide. Many offshore jurisdictions do not publicly disclose the names of the settlor, trustee, or beneficiaries. This ensures that the details of the trust and its assets remain private.

Benefit: This is particularly appealing for individuals who value discretion or want to keep their financial affairs confidential from public scrutiny or prying media.

Estate and Succession Planning
Efficient Wealth Transfer

Offshore trusts can help ensure smooth wealth transfer to beneficiaries, avoiding the delays and costs associated with probate processes in some jurisdictions. Furthermore, offshore trusts can bypass certain inheritance laws that might otherwise complicate the distribution of assets (e.g., forced heirship laws).

Benefit: For individuals with significant wealth, this can streamline the transfer of assets to heirs, minimize administrative hurdles, and protect the estate from unnecessary delays.

Protection from Forced Heirship Laws
Avoiding Forced Heirship

Some countries (e.g., France, Spain, and many Middle Eastern countries) have forced heirship laws, which mandate that a portion of the estate must go to specific heirs, such as children or spouses. By setting up an offshore trust, a settlor can bypass these rules and have more control over the distribution of their estate.

Benefit: This allows for greater flexibility in how assets are allocated, making it possible to provide for non-family members or make charitable donations without being bound by local inheritance laws.

Control Over Asset Distribution
Customizable Distribution Terms

Offshore trusts can be structured with specific terms and conditions for asset distribution. The settlor can set rules about when and how beneficiaries can access the trust’s assets (e.g., for educational expenses, purchasing a home, or after reaching a certain age).

Benefit: This ensures that the wealth is used according to the settlor’s wishes and can help protect beneficiaries from squandering inherited assets or making poor financial decisions.

Diversification and Investment Flexibility
Global Investment Opportunities

Offshore trusts often allow the trustee to manage the trust’s assets across multiple global financial markets. This can provide broader access to diverse investment opportunities, including international stocks, bonds, real estate, and private equity investments that might not be available in the settlor’s home country.

Benefit: This can enhance the overall performance of the trust’s portfolio by taking advantage of global investment trends and diversification strategies.

Protection from Political or Economic Instability
Geopolitical and Economic Safety

Offshore trusts can offer protection against political or economic instability in the settlor’s home country. By holding assets in a stable offshore jurisdiction, the settlor can ensure that their wealth is less affected by local political crises, hyperinflation, or currency devaluation.

Benefit: This is particularly useful for individuals in countries with volatile economies or regimes that may affect private property rights or financial security.

Philanthropic Goals
Charitable Giving

Offshore trusts can be used to support charitable endeavors, providing benefits like tax deductions and exemptions available in certain jurisdictions. Charitable remainder trusts or charitable lead trusts set up offshore allow the settlor to contribute to causes they care about while benefiting from tax advantages.

Benefit: This structure can help ensure that charitable donations are handled efficiently and in alignment with the settlor’s long-term philanthropic goals.

Privacy for Beneficiaries
Minimizing Public Exposure

Because offshore trusts can be established in jurisdictions with strict privacy laws, beneficiaries often have greater protection against public disclosure of their financial matters. This ensures that heirs or other beneficiaries can inherit wealth without attracting unwanted attention.

Benefit: This is particularly appealing for those who want to shield beneficiaries from public scrutiny or media attention.

Global Asset and Business Holding
Holding International Assets or Businesses

Offshore trusts can be used to hold assets such as international real estate, investments, or business interests. The trust structure allows for more flexible management of global assets, making it easier to navigate cross-border legal and tax considerations.

Benefit: This is especially useful for individuals with international business interests or those with property and investments in multiple countries.

Pension and Retirement Planning
Offshore Pension Planning

Some jurisdictions offer favorable tax treatment for offshore pension funds and retirement accounts. By using an offshore trust, individuals may be able to defer taxes on retirement savings or create more flexible retirement plans.

Benefit: Offshore trusts can be used to enhance retirement planning, particularly for expatriates or individuals working internationally.