In the field of offshore, we speak of offshore business, helping you to optimize your income, benefiting from attractive taxation in foreign jurisdictions. But we often talk about foundations, trust or offshore trust, which also seem to interest more people, especially to better manage their wealth.
The benefits of using the Trust or Offshore Trust
Thanks to offshore Gibraltar you can protect your capital, benefiting from favorable taxation (inheritance taxes). In addition, you also protect yourself from the consequences of lawsuits after a divorce, or the political instability of your country. But for that, you can not be the trustee of the assets yourself.
The trust or offshore trust allows you to plan your estate against inheritance. Once in the trust, your assets will be protected because the rules of inheritance will no longer apply. This can replace a will, allowing you to divide your wealth as you wish, without wasting time and money certifying a will. In addition, this succession planning through the trust is entirely confidential, contrary to the terms of a will. In this context, it is important to note that the offshore Trust can be created during the lifetime or after the death of a person, by means of a will. The creator can safely transfer the ownership of his property while keeping the final control.
Even if the Trust can not do business, you can invest money for your trust. Thus, even if the Trust or the Offshore Trust is often used for humanitarian, educational, philanthropic purposes …, it can also help you in your wealth management.
The Trust, what is it?
The Trust is a legal agreement very often used in the concept of offshore tax exemption. Thus an offshore trust is generally used with an offshore company, particularly very effective for the protection of your offshore assets.
Also called Trust, the international trust is the relationship between the person who creates the Trust, called the settlor, the person in charge of the Trust, including the trustee, and the beneficiary, that is, the person to whom the Trust benefits.
The different types of Trust or Offshore Trust
The types of Trust or offshore trust are generally determined by its objectives.
- We speak of a charitable trust when its purpose is to help causes or charities. The Charity Trust generally benefits from tax advantages defined by the laws of the jurisdiction in which its activities are carried on.
- There is also an offshore Trust or Trust for the sole purpose of protecting your wealth. Specifically, the assets will be transferred to the Trust, and will no longer be attached to the owner.
- The Trust or the Offshore Trust also serves to plan the estate, or manage the estate, as a testament. With this type of Trust, you can divide your assets according to your wishes.
- Finally, the Trust also allows you to protect yourself against the squandering of your assets. Thus, this Trust prevents your assets from being wasted if you would never be able to take care of your financial affairs, illness, addiction, or other problems …
Creation of a Trust or Offshore Trust
How to create a Trust usually depends on each jurisdiction. But to build trust, you usually have to prepare a trust contract if you are the settlor. This contract can also be called a trust contract or a declaration of trust. Then, the property will be transferred to the trustee for the benefit of the beneficiaries. Once these steps are completed, the Trust should be valid. As a settler, you can write a letter of greeting, also known as a memorandum, in addition to the trust agreement, detailing exactly what the trustees can do.
To help you build your trust, it is advisable to use the services of professionals. Indeed, the laws could differ from one country to another. In most cases, an offshore trust or trust needs an authorized agent and a head office located in the offshore jurisdiction or tax haven where it is incorporated.