Why open a trust

Why open a trust

A trust is a legal tool that enables investors to protect their assets from external creditors. They are an appropriate form of asset protection for business owners and individuals of high-net-worth, as they offer ultimate asset protection and wealth management services. Primarily, trusts are established to protect an individuals valuable assets from heavy taxation regulations; however opening a trust also offers anonymity and security on your capital investments.

EFSAG offers a wealth of trust formation services. To learn more, please view our Offshore Trusts services page.

Features of a trust

Opening a trust in a dependable jurisdiction is an important step in protecting your valuable assets. For high net worth individuals or corporations, to create such an entity is crucial in investing your personal or corporate wealth from heavy taxation in a highly confidential and secure environment. This is one of the primary reasons why people choose to establish a trust: they offer protection from heavy tax regulations in ones country of domiciles, whilst many offer full exemption from tax levies in highly developed financial markets. This gives assets greater value and security and avoids major financial losses.

When opening a trust in an offshore jurisdiction, you can ensure that your wealth is protected from external regulations put in place by your country of domicile. By opening a trust, your assets are subject to the laws and regulations established by your selected jurisdiction, and are therefore protected from creditor claims and the probate procedure.

There are countless reasons why people choose to open a trust. They offer protection on inheritance property for your children or for future generations, thus providing complete peace of mind that your assets are secure and not at risk of legislative intervention.

Once you have established your trust in your chosen jurisdiction you are free to invest your wealth as you wish. A deed will be drawn up that specifies what assets you have chosen to transfer to the trust, and how those assets will be distributed. Assets placed in the deed can range from personal or intellectual property, to insurance and jewellery.