Avoidance of forced heirship rules
There are many options available to individuals to avoid their country of domicile’s forced heirship rules, but the most popular and secure method of doing so, is through an offshore trust. Setting up and management an offshore trust in a favorable jurisdiction will require a geed understanding of the trust laws and requirements in your selected country. It is therefore highly advisable to seek the advice and guidance of a professional consultancy to guide you on the best offshore trust solution to meet your needs.
For more information on the avoidance of forced heirship rules, or to learn about the offshore trust and foundation services DeltaQuest can assist you with, Contact Us.
How to avoid forced heirship rules
Although forced heirship rules are not evident in every jurisdiction, these set of rules are prevalent in many, and as such a growing proportion of the population are seeking to obtain the freedom in deciding the beneficiaries of his/her estate as they desire after their death.
The main option available to individuals is to set up an offshore trust in a country of their choice, provided the country they select does not enforce forced heirship rules. An offshore trust is a legal relationship between the trust settlor and the trustee. The settlor is the owner of the trust while the trustee is a nominated individual selected by the settlor to manage and administer the trust on his/her behalf. In an offshore trust, the settlor (typically a high net worth individual) can declare in his/her trust deed how much of the trust assets are to be given to whom, thus giving the settlor complete freedom to decide the fait of his/her estate.
An offshore trust must act in accordance and compliance with the relevant trust laws in its country of establishment however most countries offer highly bespoke trust laws to ensure the support and benefits of a trust can be fully enjoyed by both settlor and its beneficiaries.
An offshore trust will require not only the settlor, trustee and beneficiaries to administer it but also the presence of a ‘protector’. The protector’s role is to ensure the trustee administers the trust in compliance with the trust deed.
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