Trust funds

Setting up foreign trusts is becoming increasingly popular since people realized how beneficial it is. You can without hesitation inform the tax authorities that you have set up a foreign trust without fear of unpleasant consequences.

This is based on the assumption that the incorporation and management of the trust is carried out correctly; and competent advice for setting up the trust is therefore imperative. When you place assets abroad in this way, they are longer subject to your home country’s legislation and will therefore no longer be easy prey for court orders and tax authorities.

We offer trust formation in the following jurisdictions:

Liechtenstein
Seychelles
Cyprus
Belize

Some basic knowledge

A trust is a legal entity that is attributed certain rights and ownership over assets, and which can be used either as a separate entity or be administrated by a person – known as a trustee. The trustee is granted full access to the assets, which the real owner – the settler, places in the trust.

A foreign trust is a useful tool to safeguard selected assets, and using a trust is now financially within reach of everyone. The trust offers a multitude of opportunities like protecting children’s savings, pension savings, investments, anonymous ownership of companies and other assets to name but a few of the many possibilities.

What is a 'trust'?

A trust is an obligation binding a person (which can be an individual or a company) called a 'trustee' to deal with 'property' in a particular way, for the benefit of one or more 'beneficiaries'.

What is a 'trustee'?

Trustees are the legal owners of the trust property. They are legally bound to look after the property of the trust in a particular way and for a particular purpose. Trustees administer the trust and in certain circumstances make decisions about how the property in the trust is to be used.

The trust can continue even though the trustees might change, but there must normally be at least one trustee.

What is 'property'?

The property of a trust can include

• money
• investments
• land or buildings
• other assets, such as paintings.

The cash and investments held in the trust are also called the 'capital' or 'fund' of the trust. This capital (or fund) may produce income, such as interest or dividends. The land and buildings may produce rental income.

What is a 'beneficiary'?

A beneficiary is anyone who benefits from the property held in the trust. There can be one or more beneficiaries, such as a whole family or a class of people, and each may benefit from the trust in a different way.

For example, a beneficiary may benefit from

• the income only, or
• the capital only, or
• both the income and capital of the trust.

What is a 'settlor'

A settlor is a person who has put property into the trust. Property is normally put into the trust when it is created, but it can also be added at a later date.

Tool for financial planning

A trust is a legal and flexible tool when looking for predictability in ones financial planning. As mentioned above a trust can be used for almost any purpose, but the main object is to protect your assets against court orders and other demands. Another general purpose may be the achieving of tax exemption or tax postponement.

Trusts can be established by expressing yourself verbally or in a written document. Such a document is called an instrument of foundation or the trust deeds. The trust can be placed in one's home country or abroad, but the latter provides the most obvious benefits in terms of asset protection and tax exemption. No matter where the trust is established, the formation and ongoing management is reasonably simple and inexpensive, and it will continue to provide the required protection as well as ensure substantial tax savings in a safe and confidential environment.

The authorities

One of the conditions for setting up and approving a foreign trust and obtaining approval from the authorities is that the control of the transferred assets is moved 100 % from you to the trust. In other words, there has to be ‘waterproof shutters’ between you and the trust.

This means that when assets are transferred into the trust you lose actual control over them. However, you will have arranged appropriate provisions beforehand, thus making sure what will happen to the assets and how they are to be managed.

Who can use a trust?

A trust is particularly useful for owning foreign companies or other international projects, on ones behalf with full discresion.

In this way you bring about 100 % anonymous ownership as the trust is effectively independent. This is often preferred by publicly known figures, royalty, sports professionals, famed business people or simply by people who wish to divorce their business profile from their private life, and who resent placing their investments or other assets in public view for scrutiny by the press and other curious eyes.

All yield generated in a trust is tax-free and will not have to be accounted for. A trust is also anonymous and the assets safeguarded against creditors, spouses, children, lawsuits etc. No assets in the trust are subject to  inheritance tax. So you decide who should inherit, how much they should inherit and in how many instalments. In short, you retain control.

Liechtenstein trusts in general

Due to the fact that Liechtenstein is somewhat different, we will have a short look at some facts and prices below. Should you have questions regarding this type of trust entity, we earge you to contact us for further information
In Liechtenstein we offer the following eneties: Trusts, Anstalt and Stiftung.

The capital for incorporating a Liechtenstein trust, has to be a minimum of 30,000.00 CHF.

The founder may carry out formal tasks within the trust, but it is important to uphold that the trust’s assets are irrevocably separated from the founder’s personal wealth and that the founder does not openly favour himself.

An annual tax of 1 per mille of the capital is payable, with a minimum of 1000 CHF.

The trust can be used as the apex of a holding construction and all related companies will then become part of the trust’s assets. The daily management of all related companies is carried out smoothly and without any interference from the trust. Only in the case of direct allocation of funds from the trust, is a formal request needed in accordance with the deeds.

Our consultants will guide you through the incorporation process. All rules and objectives of the trust require approval in Liechtenstein, after which the trust becomes active.

Trusts often have an IBC offshore company placed under them, to make control over liquid assets faster and easier. Offshore companies can hold bank accounts, where one or more persons may have direct access. Access to the company assets can be via web banking, trading accounts, debit cards or credit cards.

Plese read here to learn, 
what benefits a Seychell offshore company can offer your Trust structure!

 

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