Why use an Offshore Trust?

Why use an Offshore Trust?

Here are the main advantages for establishing an offshore trust and an offshore foundation:

Privacy – Is a highly sought after and key feature of forming a trust or foundation. A settlor, a founder and their beneficiaries can remain anonymous and their assets managed in a confidential manner.

Asset Protection – Asset protection is achieved as a trust or foundations property is secure from third party claims, be it creditors or via forced heirship rules. By forming a trust or foundation in a stable and growing jurisdiction it will prevent the assets being devalued in the event of an economic or political crisis.

Flexible Terms – A trust or foundation can be erected in a matter of days, at little or no cost and you can manipulate the trusts structure to be specifically tailored for your needs. Moreover, a wide range of assets can be held in a trust or foundation, these include; stocks and shares, real estate, intellectual property and so on.

Flexible Application – Trusts are commonly used by individuals for asset protection and estate management for future generations. Both trusts and foundations can be used for the following: employee benefit schemes, stocks and shares, insurance plans, retirement schemes, pension plans, and charity groups. Foundations can take the form of both charitable and non charitable entities.

Financial Security – Offshore trust and foundation assets are protected from the domicile instable government and financial infrastructure.

Legality – Trusts are recognized under common law, however in many civil law jurisdictions they are increasingly becoming known. Moreover, many jurisdictions do not recognize foreign judgements.

Legal Distinction – A foundation enjoys its own legal personality, thus becoming the owner of the property held in the foundation. It can enter into third party agreements, open bank accounts, sue or be sued and own multiple other corporations.

Tax Planning – Offshore trusts and foundations serve as an effective tax planning tool where by the property can be exempt from exchange controls, capital gains taxes, income tax and inheritance tax. It is a legitimate way to profit from another jurisdictions bespoke tax system. For foundations, tax deductable donations are applied for income tax purposes. In addition to this, compensation can be given for reasonable work carried out by individuals.

Tax Exemption – Income derived from a trust is exempt from local taxation if the trust beneficiaries are non residents of that jurisdiction.

To benefit from the above advantages, EFSAG can supply you with a tailor-made offshore trust or foundation solution. Contact Us, or complete our Application Form to find out how EFSAG can help you setup an offshore trust or foundation today.