Offshore Trusts

Offshore Trusts

Offshore Trust is one of the most secure, effective financial planning vehicles available today.

By establishing Offshore Trust you can gain confidentiality and protect your assets from unforeseen financial risks.

Services Seychelles Belize
Establishment of the Trust.
(Includes our time for drafting and settling a new standard form discretionary trust deed and time required for standard compliance work; registration of the trust.)
0 0
Annual fee for provision of Trustee, if provided by us.
(Free for the first year, recurring annually thereafter.)
0 0
Government Fee for registration of an International Trust. 0 0
Legal advise, consulting, various disbursements. Time-based fees Time-based fees
Total 0 0
Annual fee from 0 from 0

Order Order

No estate, inheritance, succession or gift tax, nor any stamp duty is applicable to Offshore Trust either.

Avoidance of forced heirship is one of Offshore Trust greatest benefits. As Trust may largely fulfill the function of a Last Will and Testament.

Another great benefit is that Offshore Trust may also be created for charitable purposes, this way you have to create your Trust for a certain purpose, but listing of beneficiaries is not required.

The Trust as a legal instrument, the Trust dates back to Middle Ages or even earlier. It continues to be widely used in all jurisdictions whose legislation has been developed on the basis of the British Common law. The modern Civil law, as currently adopted in many countries of the world (notably, most of continental Europe), utilizes an alternative concept of "property", which is largely incompatible with the concept of the Trust relationship. Nevertheless, Trusts continue to serve excellently as an asset protection, and estate planning instrument for millions of individuals all over the world, regardless of their country of residence.

Today the Trust concept is well established and quite developed in many countries around the world, including most of the leading offshore jurisdictions.

A Trust is not an entity, but a specific legal relationship, which is widely recognized in Common law jurisdictions. By means of a Trust, property owners transfer their property to an independent third party, or trustee. The Trustee, in turn, is legally bound to maintain and manage these assets for the benefit of another person or group of persons ("Beneficiaries"). The core principle of Trusts lies in the separation of legal title (ownership) to an asset from the benefits (equitable title) derived from that asset. Because legal title is severed from benefits, the control over the asset (right to dispose with) is also separated from the benefits derived from that asset.

International offshore trusts are one of the most secure, and effective financial planning vehicles available today. By establishing a trust, you can gain confidentiality and protect your assets from unforeseen financial risks. When you transfer your property into a trust, you insure that that property will stay uninterrupted and will continue to be held and managed by trustee, even if unexpected death, probate or other formalities happen.

Main benefits of an Offshore Trust

  • Privacy – Trusts may be created purely for privacy. The terms of a will are public and the terms of a trust are not. For some individuals this element of privacy alone makes the use of trusts ideal.
  • Asset Protection – Trusts allow individuals to protect assets they would otherwise own from creditors. By putting property in trust the settlor ensures he is no longer the owner of the property, which extinguishes creditors’ claims. This means that future creditors will be prevented from reaching those assets, even though they may be able to bankrupt the individual. One potential asset protection arrangement can be achieved by creating a Seychelles International Trust for which the unnamed settlor is the protector, and a beneficiary, but not the sole beneficiary. Such an arrangement can allow a settlor to discreetly be in a position to benefit from the trust assets, without actually owning them, which means the assets will be unavailable to his creditors. Such a trust will typically have a completely unrelated name and thereby fully preserve anonymity.
  • Corporate Structures – Business arrangements can utilize trusts as holding vehicles for other entities or structures. This can help to maximize efficiency of planning and control of interrelated entities, while also maintaining confidentiality and protecting beneficial owners. For example, a trust may be the sole shareholder of an IBC, thereby allowing beneficial owners to discretely enjoy the benefits of their business.
  • Tax Planning – In many situations the tax consequences of using a trust are better than the alternative, and trusts are therefore frequently used for legitimate tax minimization and avoidance.
  • Wills and Estate Planning - Trusts frequently appear in wills, and are an effective way to administer an estate.
  • Charities – Trusts are often used for charitable purposes, such as the eradication of poverty or education. Seychelles supports the creation of charitable purpose trusts.
  • Unit Trusts – Trusts have proven to be so flexible as to be capable of working as an investment vehicle, sometimes called the unit trust.
  • Pension Plans – Employee pension plans can be set up as a trust, with the employer as settlor, and the employees and their dependents as beneficiaries.
  • Remuneration Trusts - Trusts can be set up for the benefit of directors and employees, or their families, or dependents.
  • Co-ownership – Joint ownership of can be achieved by a trust.
  • Spendthrift Protection - Trusts can are useful for protecting beneficiaries (e.g., one´s children) against their own inability to handle money. This can be achieved by setting up a trust with a corporate trustee who may only distribute funds to beneficiaries for causes specifically articulated in the trust document.

So, is an Offshore Trust the right choice for your situation?

  • If you are looking to preserve your wealth (from political, economic or family related uncertainty).
  • If you want to transfer your wealth to your heirs in a tax-efficient manner.
  • If you want to plan your estate by maximizing the benefits of your wealth to your family members and others.
  • If you want to make a transfer of your wealth to your heirs following your wishes without being hamstrung by the burdensome, and expensive succession and inheritance laws of the country in which you live.
  • If you want to consolidate the ownership of the assets you owe throughout the world in one location.
  • If you want to minimize or eliminate estate taxes that arise on the death of the settlor.

Currently we offer Trustee Services in Belize, and Seychelles, and are nearing the approval process for trust licenses in numerous other jurisdictions.