LiveOffshore - Expatriate, International Living, Embassies

Offshore Trusts

Offshore trusts are trusts that are formed under the laws of an offshore jurisdiction.

A trust is an independent legal entity created by a settler to hold assets such as money and property for the benefit of certain persons or entities, with a trustee managing the trust.

The trustees are the the legal owners of the trust property, but they are legally obligated to hold, invest, manage, and otherwise administer the assets of the trust for the benefit of the beneficiaries. The trustee can be either a person or legal entity such as a corporation.

Trusts are one of the most innovative contributions to the western legal tradition. They may have a multitude of purposes and objectives:

1. They may protect assets from future personal liability.

2. Trusts may be used for tax planning to minimize estate, inheritance, capital gains, and income taxes.

3. Provide for those unable to manage their own affairs.

4. Provide for an efficient and timely distribution of assets at the time of death.

5. Privacy.

6. Wealth preservation.

7. Business continuity.

8. Ownership of assets and investments such as real estate, cash, stocks, bonds, negotiable instruments, and other types of personal property.

9. The creation and provision for charities.