Trusts 2018-12-03T14:08:44+00:00

Trust Registration

Asset Protection Trust

A Trust is one of the most flexible existing financial mechanisms, able to handle almost any purpose. Its concept is based on the separation of legal ownership of the Trust assets (which rests with the Trustees) from the beneficial ownership (which rests with the beneficiaries). It has been specially designed to achieve the best asset protection.

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

– 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.

Most Frequent Uses of an Offshore Trust

– To offer flexibility in the distribution of the client’s assets following his or her death;
– The Trust will avoid lengthy and complicated probate court procedures as well as inheritance taxes;
– A trust, specially if operative for several years is less probably to be legally challenged than a will, specially regarding the charge of mental incompetence so often used against will written late in life;
– To keep confidential the beneficial ownership of property or share stock (assets);
– To hold property (asset) for those who cannot hold it for themselves, e.g. minors or bankrupts, or simply for those who wish 100% anonymity degree;
– To minimize taxation by means of the client divesting himself of income or assets in favour of the Trustee, who may be located in low or no tax jurisdictions;
– To protect property and other assets from legal and political actions that may be taken against the client by transferring legal ownership to the Trustees (Asset Protection).

In these privacy aware jurisdictions, 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. But in this can, you can appoint your own IBC as the Trustee, thus full controlling this feature.

Elements of a Trust

In general, a trust involves:

A Settlor or Grantor – The person, company or other entity placing property into a trust.

A 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.

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

A 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.

The 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 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.

Since the Trust is a offshore Trust, it 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 specially 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 or her selected Beneficiaries.

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

The documents that are apart of the Trust are as follows;

One US Dollar to start the Trust

Trust Deed

Deed of Transfer – When you transfer items to the trust or you purchase items in the name of the trust you must list them on a Deed of Transfer; also if you remove items from the Trust you must also list them on the Deed of Transfer and a copy of each must be sent to the Trustee.

Letter of Wishes – Since there is anyone named in the Third Schedule of the Trust Deed this is used to instruct the Trustee as to distribution of the Trust. You may submit Letters of Wishes any time you feel that it is necessary to make changes or submit a request.

Minutes of Meeting appointing the General Trust Manager
Power of Attorney to conduct the day to day of Trust

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

A Trust and a Trustee Company can be structured so that the assets of the Trust are held by the Trustee Company which in turn has its shares issued to and owned by the Trust.

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 or 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

Private relationship, for example, in Belize offshore trust deeds are not publicly registered;
Wealth protection;
Tailored to specific family requirements;
Recognized in all common law jurisdictions;
Increasing recognition in important civil law jurisdictions;
An important tool in international income, capital gains and estate tax planning;

Used by corporations for employee benefit plans, retirement and stock option schemes, insurance plans and special financing arrangements:

Important remark:

We do not include the beneficiaries in the Trust Deed for confidentiality matters; you will appoint them at any time of your convenience, by simply submitting tem in the Letter of Wishes.