A trust has traditionally been one of the most preferred modes of asset protection in offshore jurisdictions. It basically requires two persons to start a trust, a Settlor and a Trustee. A settlor basically provides the assets for the trust and through the trust deed provides the guidelines through which the trustee should manage the assets for the ultimate owner of the trust- ‘The beneficiary.’
The Trustee just acts as the intermediate owner and the ultimate owner of the ‘Trust assets’ is the beneficiary. A trust is preferred as an investment option as it is considered as a separate legal entity under which the assets provided to the Trust no longer belong to the settler. The Courts under almost all circumstances do not look into the trust assets and leave them aside from the assets of the settler.
A trust also generally provides tax benefits and trust assets and income are not taxed. It also provides legal recognition as a Trust Registration document is normally globally recognised and on the other hand it also ensures privacy as a trust composition document is normally not available for public access.
Normally, three types of trustees are available for selection –
- A Licensed Professional Trustee (It is normally a Company registered and licensed to act in financial services in the jurisdiction). They are professionally managed and offer continued and reliable service.
- A Private Non Professional trustee who is normally a family member or a friend who acts as a trustee.
- A Private Trust Company, a type of company which is specifically established to act as a trustee. We explain it in detail in the tab Private Trust Companies
At Empire, we understand that a trust may be required for a number of varied purposes and we can provide you with guidance to select the ideal form of trustee and trust structure based on your needs.
No designation has been made by the Texas Board of Legal Specialization for a Certificate of Special Competence in this area.