What is a trust
A trust is an arrangement under which one person holds legal title to property (trustee) on behalf of another person (beneficiary). It is designed to protect the assets of high net worth individuals, organizations and businesses, whilst reducing or eliminating estate tax liabilities. It also enables the avoidance of probate.
DeltaQuest can assist you with all of your asset protection requirements. To learn more please view our Set Up a Trust services page.
Characteristics of a trust
A trust is a form of asset protection designed specifically for your personal or corporate wealth. Individuals place their property within the trust, for the ultimate benefit of their nominated beneficiaries. In order for a trust to be an effective asset protection tool, it must comprise of three main parties, namely, the settlor, the trustee and the beneficiary. In many circumstances, a protector is also appointed.
The settlor is the person setting up the trust; their intention is to transfer ownership of their assets from themselves to the trustee. The trustee takes on full responsibility to manage the trust and maintain full control over all property held within the trust. When setting up a trust, the settlor must outline who will benefit from the formation of the trust (the beneficiaries). This information will be detailed within a trust deed. Finally, a settlor can appoint a protector, who is given the responsibility to supervise and approve all trustee activity.
Many people choose to set up a trust in order to protect their wealth from complex taxation obligations and regulations. Many professionals agree that the act of protecting your assets through an offshore trust in a reliable jurisdiction is one of the most valuable steps an investor can take in securing the future of their assets.
There are a range of trust types available and the type of trust selected will depend on the particular personal and financial needs of the individual. When selecting a scheme to protect your assets it is also important to select the correct jurisdiction that matches these needs. Setting up a trust requires both specialist knowledge of trust laws as well as expertise on international cross-border matters, including inheritance, banking, real estate and corporate matters. A thorough knowledge of this information will provide peace of mind when preserving your wealth.
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