Advantages and Uses of an Offshore Trust

Tax planning

Assets held in a Trust can be protected from inheritance and wealth taxes, as well as capital gains taxes. Assets held in a Guernsey Trust are not taxable in the offshore jurisdiction.

Estate and succession planning

Assets placed in a Trust are completly separate from a person’s estate. A Trust structure can be used to protect assets against onerous forced heirship rules which applying 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

There is no requirement for the registration of trust deeds in Guernsey, so complete confidentiality is assured for a settlor and beneficiaries. 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 mangement.

Corporate offshore schemes

Offshore trusts are being increasingly used by corporate clients, in order to hold certain assets off‑balance sheet, set up employee benefit trusts (including share schemes) and unapproved retirement benefit‑schemes.