What is an Offshore Trust?
An offshore trust is similar to any other trust with the key difference being that it is domiciled in an "offshore" location often under specific legislation. The trust is a contractual arrangement between the "Settlor" who transfers assets to a third party ("Trustee") to oversee and manage the assets for the benefit of parties nominated by the Settlor ("Beneficiaries") which may include the Settlor during his/her lifetime.
Offshore Trust Benefits
- Trust deeds are not registered publicly ensuring privacy
- Recognized in common law jurisdictions
- Versatility in terms of meeting specific family requirements
- More control over succession planning
- Asset protection
- May be able to accumulate assets and income tax deferred as well as for avoiding estate planning taxes
- May be used for employee pension schemes, stock options plans, insurance schemes and similar.
- Offshore trusts are free of all tax on income, gains and distributions in the domicile of the trust
Assets of Offshore Trusts
The Settlor may transfer virtually any kind of asset to be held by the Trustee as long as the asset is clearly identifiable and title can be legally transferred. Examples of trust assets include:
- Shares or any type of securities issued by private or public (listed) companies
- Other types of investments under an investment portfoio
- A life insurance policy set up by the Settlor
- Any kind of movable, immovable or intellectual property
Who should consider setting up an offshore trust?
Offshore trusts are generally suitable for individuals looking to achieve any of the following goals:
- Wealth protection for future generations
- Minimizing estate planning taxes upon the death of the Settlor
- Accumulating global assets and income in a tax efficient manner to maximize benefits for the family
- Control over how assets of the Settlor will be distributed to beneficiaries upon death of the Settlor
- Managing global assets under one central structure
Contact Sterling today to begin setting up an offshore trust!
Offshore Trust Formation Services
Seychelles Trust Quote Request
Seychelles Trust Fact Sheet 2015