There are many advantages to using an offshore trust structure:
A trust structure can often avoid forced heirship issues which dictate in certain jurisdictions how assets are to be distributed on death. This can be particularly beneficial should there be a vulnerable family member who will require financial security into the future.
Family Wealth Preservation
This is a common motivation for establishing a trust structure, particularly where there is a family business involved. A settlor can avoid company shares being divided between a number of heirs on death, ensuring they continue to be managed centrally so that benefits are enjoyed by future generations.
In certain situations, trusts can be used to shelter assets from capital gains, income and inheritance tax. We work with a number of specialist tax advisers who assist us in creating bespoke structures for clients to attain their specific objectives.
Trust assets can at times be ring fenced to protect them from creditors.
Trusts can be established for charitable funding purpose. These trusts will not have named beneficiaries but offer a good deal of flexibility for making charitable donations either on a fixed annual basis or at the discretion of the trustees.
Download our Discretionary Trusts product note HERE