Offshore trusts are the strongest asset protection tools in the world. Offshore trusts are similar to traditional trusts in that they consist of a relationship among “Trustees”, “Settlors” and “Beneficiaries”. The “Trust Deed” is the written legal document that establishes the provisions of the offshore trust. Offshore trusts can hold title to assets and property, manage assets and provide many benefits to the person or group of persons appointed as the beneficiaries. The trustee or trust company that manages the trust must uphold the agreement and provide for the beneficiaries as well as protect the assets from predators.
Offshore trusts are often formed in low-taxation or low-regulation havens that are known to have a reputation for the successful management and execution of trusts and trust funds. However, it is not absolutely necessary for a suitable location to be a tax haven or have tax regulations. Many of the successful trust formation jurisdictions and countries simply offer renown, experienced trust companies with superb confidentiality and with substantial asset protection. One common characteristic is that these jurisdictions base their trust regulations and statutes on the English Common Law. Other European jurisdictions that offer successful trust administration, such as Luxembourg, Malta, Switzerland, etc., have adapted their statutes and regulations to conform with the proper trust administration models set out by those based on the English Common Law.
