Offshore Trust Company

It is said that every year there are a number of investors who are attracted towards formation of offshore companies, offshore trust company, offshore mutual funds and offshore banks. Studies have revealed that more than 60% of the world’s wealth is held in offshore accounts using offshore companies and trusts.

A trust that is formed under the laws of an offshore jurisdiction is defined as an offshore trust. Offshore trusts are similar in nature to the traditional trusts. They have a settlor who transfers assets, which are the trust property, to the trustees. This is done to enable the trustees to manage the trust property for the benefit of the person/s called beneficiary or beneficiaries. The provisions are made in a binding, written legal form known as the ‘Trust Deed’. The trustee and the trust company which has been given the charge of the management of the trust are bound by a fiduciary duty to uphold and respect the agreement, and that they agree to the rules and requirements that are set down in the trust deed.

Once it has been decided to form the offhsore trust company, the settlor must select the type of trust to be formed, and decide on the other associated details. These details would include duration of the trust, whether the trust is revocable or not, whether it is discretionary or not, and decide on the rights, duties, and obligations of the trustee. Revocable trust can be revoked at any time by the settlor. Some trusts, with pre-determined life spans and which do not have any provisions to be revoked will conclude when the term of creation of the trust deed are met.

In recent times, a number of offshore jurisdictions have modified their laws to make their jurisdictions more attractive to settlors and in the process attract more business. Many people are not very comfortable about handing over control of their assets to a totally unknown third party. Many people are afraid that handing over their assets to a trust leaves them in a very weak position as far as protection and management of their assets is concerned. It is to overcome this fear or apprehension that offshore trust companies have come up which give the settlor a far more degree of control over his assets.

You enjoy the following benefits when you utilize the services of an offshore trust company:

• Family members can be directors within the Private Offshore Trust Company (PTC) and take any decision relating to the management and control of assets
• A PTC is more effective than the normal ‘letter of wishes’ which is the only means of control a settlor has over a traditional trust managed by third party trustees.
• It is advisable to employ the services of a professional trustee on the trust board to ensure that the trust meets with all the legal requirements and ensure tax efficiency.
• The majority of the directors should be offshore to maintain tax efficiency.
• Make sure that you take professional advice at every step of the way to ensure that all legal requirements are met and the trust remains tax efficient.

Offshore trusts company offer major benefits to many investors and individuals with substantial capital assets. So, do take advantage of these benefits and form your Offshore Company Trust.