Offshore Trusts Print

 

Trusts have been used successfully in Great Britain for several hundreds of years the origin emanating for the need of the land or assets to be held “in trust” on behalf the absentee landowner. The transfer of assets to a third party can effectively be used for tax planning and inheritance purposes and/or in conjunction with an “offshore corporation”.

Trust are generally used for –

Tax planning, asset protection, and the distribution of asset to heirs or others

There are many countries in which it is possible to set-up a trust. It is important to choose a jurisdiction, which has a strong tradition of enforcing trusts and that that has passed modern legislation to allow newer concept of trusts. In 1990 Gibraltar modified its law to facilitate trusts designed to provide a higher degree of creditor protection.

In combination with a suitably located company ‘on-shore’ or ‘offshore’ it may be possible to transfer all or part of the shareholding of your trading company into a trust. There are various types of trusts to consider-

  • Asset Protection Trusts
  • Employee Benefit Trusts
  • Retirement Benefit Trusts

These types of trusts can be utilised to-

  • Hold the assets for your family which would not be subject in normal circumstances to capital gains or inheritance taxes.
  • For a company to divest itself of a percentage of the shareholding which may be put ‘into trust’ for political reasons to restrict the passing of the control of the company to an undesirable partner. This could be to the benefit of current and future employees and or private family members.
  • Own the family home or a holiday home. Which upon the death of the settler (the former owner) would pass to the beneficiaries (usually the remaining family)
  • Motor vehicles, Stocks, shares, insurance policies, and cash on deposit


Many countries such as the USA and UK have passed anti avoidance legislation making it difficult legally to set up a trust if the purpose is to avoid paying taxes. This is a complex area and specialist advice should be sought. Directors of the Keylink Group would be pleased to discuss your questions concerning Trusts.

For a no obligation informal discussion please Contact Us