Trust Formation Trust Managers Offshore Trust Formation
Trust information Offshore Trustee's Trust Formation - Management
A trust is a legal document under which property, either financial (i.e. bonds or shares) or tangibles (i.e. land or real estate), is placed into the custody of a designated person, or people, named trustees, for management on behalf of the Settlor.
Why is a trust an important tax planning tool? The trust is an immense tax planning tool because it allows beneficial enjoyment of an asset to be separated from the legal ownership of that asset. The person who established the trust no longer owns the asset that he has put into the trust, but, in a way, he retains control over them.
How can this control be described? It is possible to have a trust deed in which the Settlor retained actual control, but for tax and other purposes that might not be an advantage. The way the Settlor can retain control of the asset whilst not loosing any tax benefits is by establishing a series of rules and regulations which govern how the assets are to be dealt with. These rules do not have to be rigid rules, because the Settlor can place the assets on the trustees and then give the trustees control, subject to certain guidelines, but remaining relatively safe in the knowledge that the trustees are going to give effect to his wishes.
How are trust used? Trust are the final holding entity. A trust will separate the direct ownership of the beneficiaries from the assets or companies and underlying companies which in turn own assets
About the Author
Billy fitzgerald has been dealing with offshore Trust companies and managers for eight years.
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