Offshore trust companies

An offshore trust company is an agreement for the holding and administration of property under which the property or legal rights are vested by the owner of the property, also known as the Settlor in a person or persons known as the Trustees. The trustees manage the trust assets and distribute them to the Beneficiaries according to the trust deed and the proper law of the trust. The flexibility and protection offered by trust agreements have become an important part of long term wealth management.

By using an offshore trust company, it is possible for family assets to be preserved over succeeding generations free from taxation, probate requirements, succession laws, expropriation and foreign exchange controls.

An offshore trust company can only be created by an instrument in writing which should state the object, subject, intention and duties and powers of the trustees.

The trust company created by a written document can be classified as follows:

• Settlement: a document signed by the settlor and trustee that states the intentions of both parties and the obligations of the trustee.
• Declaration of Trust: a document entered into and executed only by the trustee that states that the trustee has received property, specified in the document, to hold upon the regulations set out in the document. It is often more convenient to create a trust company by declaration of trust than by settlement in case the settlor is not available to sign the document when it is prepared.

Types of Offshore Trust Companies

• Private: includes discretionary, accumulation, maintenance, life interest and fixed interest trusts.
• Corporate: includes pension and employee benefit trusts.
• Charitable: solely for the benefit of charitable organizations.
• Purpose: trust companies with no beneficiaries and are established for purposes that are certain and reasonable.

Offshore Trust Companies Jurisdictions

The most popular jurisdictions where trust companies are created include Cook Islands, Nevis, Isle of Man, Belize, Switzerland, Sweden and other countries in Europe. The laws in these jurisdictions provide unsurpassed asset protection and strong privacy laws that favor Beneficiaries.