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Offshore Trusts
A trust is established through a written legal document called a “Trust Deed”. Much like a corporation, a trust is a distinct legal entity with its own property separate from the assets of the individual who initially established it.
A person (The Settlor) who wishes to form a trust creates a trust by transferring assets to an independent third party (known as the Trustee). The trustee then invests, handles, administers and manages the Settlor’s former assets for the benefit and on behalf of whomever the Settlor chooses (known as the Beneficiaries). A Settlor, the creator of the trust, may be an individual, a corporation or another legal entity.
The trust is one of the most flexible legal mechanisms available and can be of much benefit when properly set up and managed.
A trust can conduct a business; hold title to and invest in real estate, cash, stocks, bonds, negotiable instruments and all sorts of personal property; take care of minors or the elderly; pay medical, educational or other expenses; provide financial support in retirement, marriage or divorce; assist in the execution of a premarital agreement; and serve as a major avenue of avoidance for the muddle of probate and the burden of inheritance taxes.
At the time a trust is created, the original owner of the assets (the Settlor) places personal property, real estate, cash, investments or any other assets into a trust to be administered by a trust company, bank, or individual (the Trustee). The trustee then administers the assets for the benefit of certain persons named in the “Trust Deed” (the Beneficiaries).
The most important motivations for transferring assets in to a trust are: Inability to hold property personally, Preserving family wealth, Tax planning, Protection from unrest, political and country risks, and future frivolous legal claims.
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