What You Need to Know About Offshore Trust Formation

An offshore trust is a trust that is formed under an offshore jurisdiction’s laws. It is generally similar to onshore trusts in terms of effect and nature, but depending on where you set it up, it may be a better way to manage and protect your assets. The trust will still involve your trust property (the assets), a settlor, the trustee, and the beneficiaries. Offshore trust formation services can help you set up your trust in a preferred jurisdiction, like Seychelles. They can be beneficial for financial and tax planning purposes, especially for your family or any other beneficiaries. The primary advantage of offshore trust formation is the protection it will provide to your assets. With an offshore trust, you can keep your assets out of reach from any potential financial enemy. It is usually completely legal to set up an offshore trust provided any necessary reporting is performed.

Offshore trust formation may be for purposes of establishingunit trusts used as a mutual fund, or as an orphan structure in trade finance transactions of capital markets. Reputable providers of offshore trust formation services offer trustee services from their local offices. In Seychelles, trustee service providers must be licensed and registered with the International Trust Services Provider and regulated by the Seychelles Financial Services Authority. Seasoned trustees are trustworthy and qualified members of STEP (Society of Trust and Estate Practitioners).

Service providers of offshore trust formation may provide consultation and advisory if you are looking to establish an offshore trust for any objective. They take time to understand and assess your requirements before recommending the best trust structure and a reasonable scope of services. Once agreed, an experienced team will start drafting the crucial documents, like the Trust Deed. The final aspect of offshore trust formation involves transferring of assets from the settlor to the service provider, which will be named as the trustee. Offshore trust formation specialists can prepare and execute other legal documents needed to make the transfers effective and successful.