Offshore trusts are the same as onshore trusts, but due to their being formed in an offshore jurisdiction become highly effective devices for tax minimization and wealth protection. Most commonly this is an arrangement where assets (money / property / investments / intellectual property) are transferred to a trustee. The administration of the trust is strictly governed by rules and regulations to ensure that the assets are managed for the advantage of nominated beneficiaries.
Trusts are popular because of their many benefits:
- wealth protection
- can be tailored to specific requirements
- recognised in most international tax law
- tax minimisation for capital gains, income tax, estate tax and inheritance tax
- consolidation of assets Why establish a trust offshore?
Because offshore jurisdictions have laws favourable to the establishment and running of a trust including privacy laws, low tax levels and trust-friendly legislation.