OFFSHORE COMPANIES, TRUSTS & ASSET PROTECTION

Legal Network Solutions is an independent Fiduciary Service Provider licensed by the Financial Supervision Commission of the Isle of Man to provide corporate and trust services.

In association with Behan Legal, it provides professional offshore and international company incorporation and related services for Behan Legal clients who:

• Carry on business or invest internationally; or,
  
  
• Wish to establish a company offshore; or,
  
  
• Work away from their home country, or provide services internationally, or,
  
  
• Wish to maximise tax benefits.
   

TRUSTS

A trust is a fiduciary relationship that protects assets and wealth, provides business and ownership continuity and succession, and provides taxation benefits. This relationship binds the Trustee over the management and distribution of assets and income.

The Trustee must administer the trust assets for the benefit of the beneficiaries strictly in accordance with the terms of the trust.  

TRUST MANAGEMENT SERVICES

• Personal advice about the creation of offshore trusts;
  
  
• Trustee and related services;
  
  
• Administration of the trust funds;
  
  
• Trust accounting & maintenance of asset portfolios;
  
  
• Appropriate reporting & filing.

OFFSHORE TRUSTS

A trust comes into existence when assets are transferred to a trustee, who as legal owner, manages, and distributes the assets, and income to the beneficiaries of the offshore trust according to the trust deed. The trust deed and trust legislation enacted in many common law jurisdictions govern these trusts.  

ADVANTAGES OF ISLE OF MAN TRUSTS

• No public register of the trust deed;
  
  
• Wealth & asset protection from uncertainty, political, economic, or family;
  
  
• Consolidation of ownership of assets owned throughout the world in one location;
  
  
• Personalised to particular requirements;
  
  
• Accepted in all common law jurisdictions;
  
  
• Increasing acknowledgment in many civil law jurisdictions;
  
  
• An effective vehicle in international income, capital gains, estate tax planning, transferring wealth to heirs in a tax-effective manner;
  
  
• Used for employee benefit plans, retirement and stock option schemes, insurance plans and special financing arrangements, and,
  
  
• When a trust is established offshore; if residents of the offshore jurisdiction are excluded from receiving benefits from the offshore trust, then no local taxes are applicable to the assets and income of the trust.

TYPES OF OFFSHORE TRUSTS

An offshore trust enables a Settlor to donate assets to a Trustee, who holds the assets and administers them for the benefit of Beneficiaries nominated by the Settlor as set out in the trust deed.

An estate created under the will of a deceased person is a trust. A trust created by a person prior to death is an inter-vivos trust and most offshore trusts are inter-vivos trusts, which may be revocable or irrevocable.

The Settlor can end or vary a revocable trust at any time, while the Settlor cannot terminate or vary an irrevocable trust. These trusts may be either discretionary or fixed interest trusts.  

FIXED INTEREST TRUSTS

The interests of beneficiaries are fixed in the terms of the trust deed and the trustee has no power to vary those interests.  

DISCRETIONARY TRUSTS

These trusts give the Trustee discretion to determine the allocation of income and capital to beneficiaries, thereby allowing for greater asset protection and tax benefits. The Trustee can appoint additional beneficiaries or remove existing beneficiaries. The Trustees can distribute the income and capital of the trust to the beneficiaries in varying amounts and at various times. When a Settlor establishes a discretionary trust, he will generally provide the Trustees with a Letter of Wishes, which provides guidance to the Trustees on how he would like them to administer the trust and manage the assets.  

INTEREST IN POSSESSION TRUSTS

Beneficiaries are entitled to receive income and capital from the trust as set out in the trust deed.  

ACCUMULATION & MAINTENANCE TRUSTS

Usually established for the benefit of children. The offshore trust deed will specify that the trust fund be used for the education and maintenance of the children up to a certain age, with surplus income being accumulated by the offshore trust. Once the beneficiaries reach a set age, they are entitled to receive income and capital from the offshore trust as set out in the trust deed.

NEED MORE INFORMATION

For an appointment, call 03 9646 3334.