Advantages and Uses of an Offshore Trust
Inheritance and wealth taxes, as well as capital gains taxes can be minimised by holding the assets in a trust. Assets held in a Guernsey Trust are not taxable in the offshore jurisdiction.
Estate and succession planning
Assets placed in a Trust are completely separate from a person’s estate. A Trust structure can be used to protect assets against onerous forced heirship rules which apply in certain jurisdictions. By the specific wording of a Trust Deed, a Settlor can ensure that on his death his assets will pass to his beneficiaries in accordance with his wishes. Alternatively a Settlor may wish to provide for the future education of his children and this can be arranged by the creation of a Trust established for this purpose.
Inability to hold property personally
The use of a Trust relieves an individual of title to the assets placed into a Trust and transfers title of same to the appointed Trustees.
Confidentiality and flexibility
Trust deeds in Guernsey are confidential documents and are not publicly registered. Settlors moving between jurisdictions may wish to place assets into a Trust to provide a nest‑egg for the future in a favourable tax environment. Similarly, clients moving to a high‑tax area may wish to deposit funds into an offshore trust en route.
Ease of administration
By the creation of a trust structure a settlor can centralise his world‑wide assets and ensure continuity of management.
Corporate offshore schemes
Offshore trusts are being increasingly used by corporate clients in order to set up employee benefit trusts (including share schemes) and retirement benefit‑schemes.