To learn more about setting up a trust, please view our Set up a Trust services page.

Family trust explained

Like a general trust, a family trust is an important asset protection tool. It is a legal contract which transfers responsibility from the original owner of the assets to a group of people or a company. The person or company is located in an offshore jurisdiction and are responsible for managing the family’s assets. In order for a family trust to be a legal entity, it must consist of particular parties.

A family trust involves three main parties, the settlor, the trustees and the beneficiaries. The settlor is the person who originally owns the assets; the trustee is the individual or company that has been chosen by the settlor to manage the entity and ensure that the assets are protected in accordance with the settlor’s wishes. The beneficiaries are those that ultimately benefit from the formation of the entity; these can include the settlor’s children or relatives.

A family trust provides a mechanism to protect family assets from high taxation thresholds, and to pass assets on to future generations. Transferable assets include intellectual property, real estate and bank deposits, amongst other tangible and intangible assets.

A family trust is governed by a number of laws and conditions. These are drawn up into a deed which is specific to that particular jurisdiction. It is therefore important that you choose the correct jurisdiction to establish your asset protection entity within, which has lucid and comprehensive laws and regulations.

DeltaQuest 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.

DeltaQuest can assist you with every aspect of your foundation formation and management. To learn more, please view our Offshore Foundations services page.

Features of a foundation protector

An offshore foundation is comprised of four parties: the founder, the council members, the protector and the beneficiaries. The founder is the individual or corporate entity who has chosen to establish the structure, while the council members are those who have been appointed by the founder to manage the assets in accordance with the Charter and Regulations document. The beneficiaries are those who benefit from the formation of the foundation.

The role of the protector is to supervise the foundation council’s activity and to ensure that they are acting in compliance with the founder’s wishes. Depending on the jurisdiction that the foundation is set up in, the protector may also be responsible for confirming the decisions of the council members, and for making suggestions with regards to which beneficiaries should be selected.  In addition to the above, they also have the ability to suggest the manner in which the council members should conduct their activity.

In certain jurisdictions, such as Panama, the protector also has the power to remove and replace the council members. He or she may also assign its role to a new protector at any time. Furthermore, some jurisdictions enable the protector to name the beneficiaries. Any natural person can become a protector, provided they are of sound mind.

For more information on trust property or to find out how DeltaQuest can assist you with your asset protection needs, please view our asset protection services page.

Trust property explained

When setting up a trust it is important to be aware of the property that you wish to place in the trust, and select a jurisdiction accordingly. When setting up an offshore trust, it is fundamental to have an understanding of the trust laws of the selected jurisdiction that you intend to form your offshore trust in. This is because each jurisdiction features its own rules and regulations, which will determine the type of assets that can be held in the trust.

An offshore trust varies in type, period of validity and content. It is therefore vital that the property held in the trust will vary accordingly and in the most beneficial way for the beneficiaries. By creating a trust, this will enable you to transfer your most valuable property items into it and thus avoid the probate procedure.

There are many different types of property that a trust can protect, including both tangible and intangible trust property. Some of these types of property are detailed below:

Money
Share, Stocks and Bonds
Bank Accounts
Real estate including land and buildings
Business or Partnership interests
Family Heirlooms and antiques
Jewellery or other precious possessions
Cars and other valuable machinery or equipment
Intellectual property including trademarks, patents and copyrights

It is recommended that you seek the professional guidance of a consultancy firm that specializes in offshore trust formation. This will ensure that you select the best jurisdiction and type of trust to hold your desired assets in.

To find out how DeltaQuest can assist you with opening a Malta offshore foundation, please view our Malta Foundation services page.

Alternatively if you would like to begin the application procedure, please complete our application form.

Malta offshore foundation

Foundations are popular forms of asset protection that are established by people and corporate entities from all over the world for a number of purposes and intentions. Many people choose to set up such an entity for charitable reasons, whilst others choose this structure for the benefit of future generations. The primary intention of these structures is to provide estate planning and asset protection opportunities. They also provide tax planning opportunities, whilst offering heightened levels of privacy and confidentiality.

The Malta Foundation Law adopts principles from the Malta Companies Act, and is primarily based on Italian and French civil code provisions. When setting up a Malta foundation there are certain requirements that must be met in compliance with the 2004 Trust Act. This Act features a revised section on foundations (as amended in 2007).

Once you have decided to set up a foundation in Malta it is important to form this entity in compliance with the above mentioned Act. It must be made up of specific parties, including the founder, the council members, a protector and beneficiaries. In addition, a Charter and Regulations document must be drawn up, which specifies the wishes of the founder.

The founder is the individual or entity who has chosen to establish the structure. The council members are those that draw up the Charter and Regulations document and manage it in compliance with the founder’s wishes, whilst the protector ensures that the foundation in functioning in compliance with the founder’s wishes. The beneficiaries are those that benefit from the formation of the structure.

To learn more about setting up an offshore foundation, please view our Offshore Foundations services page.

Council members explained

When setting up an offshore foundation it is vital that it is made up of certain parties in order to be classified as a legal and operational entity. The parties involved include the founder, who is responsible for the formation of the entity; the protector, who oversees the operations of the structure to ensure they are in compliance with the founder’s wishes; the beneficiaries, who will benefit from the formation of the entity, and the council members.

The council members are the individuals responsible for the management and administration of the entity. Council members are appointed by the founder to manage and administer the foundation, and they are required to draw up a Charter and Regulations document, which stipulates the specific wishes of the founder.

A foundation is a flexible entity as it enables the founder to place assets within its structure as and when he or she desires. The council members are responsible for administering the funds and ensuring that the foundation is operational in compliance with the founder’s wishes. Although it is possible to deposit funds, in most respects, the assets placed within a foundation cannot be withdrawn by the founder, as their ownership has been transferred from themselves to the council members.

To learn more about the different types of trusts available, or to find out how DeltaQuest can assist you with your asset protection requirements, please Contact Us.

Blind trust features

In addition to providing absolute confidentiality, a blind trust is also an excellent form of asset protection. Depending on the country in which it is set up in, it can provide complete exemption from additional gift tax, estate tax or any other form of tax.

Further to the above, a blind trust works well for a lottery winner, as it provides the individual in question with complete anonymity when handling their funds. In addition, it allows for the appointment of a legal representative (trustee) to maintain full administrative responsibilities over the trust.

This particular form of asset protection is particularly advantageous for those who are not experienced in dealing with large sums of money, as all responsibility is transferred to the trustee. It also works well as a financial tool to assist high net worth individuals in managing their assets. With the help of financial advisers, the trustee manages the funds on behalf of the settlor. He ensures that the money is correctly invested in order for the appointed beneficiaries to receive maximum benefit from the funds.

Finally, the greatest advantage to establishing this sort of structure is that the funds are protected from external creditors.

DeltaQuest is experienced in offshore foundation formation and can assist you with the complete formation procedure in the jurisdiction of your choice. To learn more, please view our Offshore Foundations services page.

Scope of a Founder

A foundation is a form of asset protection tool that protects family or corporate assets from creditor claims and strict governmental taxation laws. It is a legal entity that is completely separate from its creators, and is used for estate planning, privacy and anonymity, amongst other reasons.

A foundation has no owners, as the assets held within its structure take on a separate legal identity. A foundation must be made up of particular parties in order to be regarded as a legal entity; these parties include the founder, the protector, the council members and the beneficiaries.

The founder of a foundation is the individual or company who has chosen to set up the entity. They are responsible for deciding how it will be structured and who will benefit from its formation.

There are a number of reasons why individuals and companies choose to set up a foundation. They offer complete protection from creditor claims and enable assets to be protected from complex governmental taxation laws. The founder will appoint council members to administer their wishes, and will establish who will benefit from the formation of the foundation (the beneficiaries). A founder will also appoint a protector of the foundation, who is responsible for ensuring that the entity is fully functioning in compliance with the founder’s wishes.

To find out how DeltaQuest can assist you with opening a Liechtenstein offshore foundation, please view our Liechtenstein Foundation services page.

Alternatively if you are ready to begin the application procedure, please complete our Application Form.

How to form a Liechtenstein offshore foundation

Foundations are popular asset protection strategies set up by individuals and companies from across the globe. Their primary purpose is to act as an estate planning and asset protection tool, and they can be established in many countries internationally, including Liechtenstein.

When setting up a foundation in Liechtenstein, it must be formed in compliance with the Liechtenstein Foundation Law 2008. The structure is very similar to that of a trust, but it differs in that it has a corporate element. It is a separate legal entity in that it does not have members or shareholders. It is generally established to reflect the wishes of the founder, who is the individual or corporate entity who has initially chosen to set up this particular asset protection structure.

All wishes of the founder are contained within a specially drawn up document known as the Foundation’s Charter and Regulations. Liechtenstein foundations can be set up for a fixed period or an indefinite period of time, and can be used for a number of reasons, such as charitable, commercial or family purposes.

A Liechtenstein foundation must encompass a protector, council members and beneficiaries in order to be a legal entity. A protector is appointed to supervise all activity, whilst the council members are responsible for ensuring full compliance with the Charter and Regulations document. The beneficiaries are the individuals selected by the founder who will ultimately benefit from the creation of the foundation.

Many people select Liechtenstein for the formation of their offshore foundation because of its favorable foundation legislation. Such structures protect assets from excessive taxes, as well as claims against creditors, forced heirship or political instability. A range of tangible and intangible assets can be held, including bank deposits, investment portfolios and intellectual property.

DeltaQuest offers offshore trust services in a range of jurisdictions. To learn more, please view our Trust Jurisdictions services page.

Features of an offshore trust

An offshore trust is an asset protection vehicle that is generally adopted by individuals of high-net-worth. Nevertheless, it is a solution available to anyone who requires protection of their assets. It involves the personal wealth (or property) of an individual being transferred into a binding legal document, known as a trust deed. Once the deed has been drafted, the legal ownership of the property transferred is no longer connected to the settlor.

A person who chooses to set up this particular structure is known as a settlor. Their assets are transferred into an agreement, and are managed and administered by a trustee. The settlor ascertains who will benefit from the formation of the structure (beneficiaries), and how the property will be administered. A settlor can also appoint a protector, who is responsible for monitoring the activity of the trustee and ensuring that it is fully compliant with the settlor’s wishes.

An offshore trust is regarded as one of the strongest asset protection vehicles available, provided the most suitable jurisdiction is selected. A number of jurisdictions offer optimal advantages that cannot be matched in onshore jurisdictions. These include complete protection from creditor claims, as assets placed within this structure cannot be seized. They also offer full exemption from taxes, as well as ultimate confidentiality and security for the effective planning of one’s estate.

The establishment of an offshore trust can provide for sound peace of mind for anyone who wishes to protect their assets now and to provide for their children and future generations in the long run.