Advantages of a fixed trust
A fixed trust has many advantages to both the settlor and beneficiaries of the trust and is a commonly set up trust structure used in countries across the globe. The most definitive feature of a fixed trust is that the settlor chooses who the beneficiaries will be and how they will benefit, thus leaving the trustee with very little or no scope to alter these decisions as made by the settlor. In order to gage a clear understanding of how a fixed trust can benefit you it is advised that you seek the advice of a professional consultancy firm that specialize in setting up trusts in favorable locations.
For more information on the different types of trusts available or to find out how DeltaQuest can assist you with your trust requirements, please Contact Us.
The benefits of setting up a fixed trust
Setting up a fixed trust in a favorable jurisdiction will benefit not only the settlor, but also the beneficiaries in many ways. Most settlors want to decide who their beneficiaries will be and how their assets held in the trust will be distributed but with many other trust structures such as discretionary trusts this is not the case. A fixed trust allows the settlor to have the control and ultimate deciding power to select their beneficiaries to suit their own requirements.
The range of associated advantages of fixed trusts in favorable jurisdictions, some of these include:
- Tax planning benefits where the trust is set up in a country with a bespoke taxation system
- Capital gains taxation benefits, whereby unit holders are provided with a 50% discount on capital gains from asset received from the fixed trust
- High levels of asset protection
- The settlor retains control over the trust beneficiaries
- A fixed trust can be treated as a fixed unit trust whereby it can be regulated under Land Tax legislation
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