
Offshore trusts play a vital role in international tax planning. Offshore companies are often owned by offshore trusts or Foundations.
Their main function is to hold valuable assets, such as shares in offshore companies, in a tax exempt environment. These assets are owned by the trustees, and do not belong to the estate of the settler or the trust for obvious tax planning benefits.
Trusts allow for flexible devolution of assets to members of the founder's or settlor's family. Local courts of the offshore trust will not entertain claims from third parties who seek to challenge these arrangements.
Each trust needs to be carefully formulated and an analysis of the tax aspects. The appropriate jurisdiction, the rights of the settlor and beneficiaries, their place of residence and the location of the assets need to be considered. InCuria provides necessary guidance with regard to trust law and national tax law. Our London office is specialised in UK, Seychelles, Cyprus, BVI (VISTA) and Jersey trust law.
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