Learning the Various Aspects of Offshore Trust Formation

An offshore trust is just like any other trust. The only difference is that it is based on an "offshore" location that is usually under specific legislation. To establish an offshore trust, a “settlor” would  transfers assets to a  licensed “trustee,” to be held on  “trust” and managed in accordance  with a trust deed, which is a contractual arrangement between the settlor  and the trustee to oversee and manage the assets for the beneficiaries you nominated. There are a number of benefits associated to having an offshore trust, such as the following:

• Trust deeds are not registered publicly, so privacy is ensured.

• A trust is recognized in common law jurisdictions.

• It is versatile when it comes to meeting specific family requirements.

• There is more control over succession planning.

• Assets are protected.

• Assets may be accumulated, and income tax deferred. It also helps avoid estate                   planning taxes.

• It may be used for employee pension schemes, stock options plans, insurance                       schemes and the like.

• There is no tax on income, gains and distributions in the domicile of the offshore trust.

Being the settlor, you may transfer virtually all sorts of assets to be held by the Trustee. The asset just need to be clearly identifiable, with a title that can be legally transferred. Here are some examples of trust assets:

• Shares or other types of securities that were issued by private or public companies

• A life insurance policy that was set up by the settlor

• Any type of movable, immovable or intellectual property

If you are looking to achieve any of the following goals, then offshore trusts may be suited for you:

• You seek to protect your wealth for future generations.

• You want to minimize estate planning taxes upon death.

• You are interested in accumulating global assets and income in a tax efficient manner           to maximize benefits for your family.

• You want to have control over how your assets will be distributed to your beneficiaries           upon death.

• You wish to manage global assets under a single central structure.

For convenience, consult with a leading provider of offshore trust formation services. It should be able to accurately assess your requirements and identify the best way to structure the trust.