Who is involved in an offshore trust
The effective set up and management of a trust typically involves four main parties regardless of where the trust is established. Most jurisdictions adopt the same structure for a trust to operate efficiently and legally however in some countries, one individual can take on more than one role. This is explained in more detail below.
For further information on the set up of a trust please click on the following link to view our Offshore Trust page and see how DeltaQuest can assist you.
Individuals party to an offshore trust
The typical set up of a trust will involve the trust owner (known legally as the Settlor), the trustee, beneficiary or numerous beneficiaries, and the protector. The majority of offshore trusts set up will have acquired the initial assistance of a professional consultancy firm and in some cases, the consultancy firm can offer trust administration and management services, thus acting as the trust’s trustee.
The Settlor is the individual wishing to establish a trust for the purpose of safeguarding their assets and planning their wealth as they see fit. Settlor will typically be a high net worth individual however this is not always the case as many offshore trusts do not require a start up capital deposit.
The Trustee is an individual or company chosen by the Settlor to administer and manage the trust on their behalf for the eventual benefit of the trust’s beneficiaries. In some jurisdictions, a Settlor has the right to also be the trustee of the trust. A trustee will administer the trust in compliance with the rules and requirements laud down by the Settlor in the trust deed.
Trust beneficiaries are the individuals selected by the Settlor, to benefit from the assets held in the trust when the Settlor requests so. In many cases a trust Settlor will request that the assets held in the trust are given to his/her beneficiaries on the death of the Settlor. Some jurisdictions allow for the Settlor to also be the beneficiary of the trust, and this structure is normally adopted for tax planning purposes.
The Protector is an individual charged with the responsibility of supervising the management and administration as conducted by the trustee. The protection will ensure the trustee complies with the trust deed and the relevant trust laws of the country where the trust is established.
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