There are many different reasons to build offshore trusts. What comes to mind for most people is, in one sense or another, a kind of tax planning. But there are a lot of other and better reasons why trusts are formed, for example:
To protect assets abroad from taxes, currency controls and government agencies worldwide.
To ensure the anonymity of the trust owners or to consolidate the ownership.
Simplification of the management of foreign goods, minimization of property taxes or to avoid wills.
To hand over assets to trustees who are better qualified to manage the assets than those who are entitled to dispose of the assets.
The assurance that one’s own wishes and ideas will be carried out in the future, even if one is physically and mentally unable to do so.
Terms / terminology
The person who transfers the assets to the trustees.
Trustee. A person or a company that manages the assets in favor of the beneficiaries / owners.
Beneficiary (s) of the Trust Assets.
A person who oversees the acts of the trustee (s) to ensure that they fulfill their obligations as defined by the trustee, usually appointed by the trustee. The powers and functions of the Protector arise from the trust provisions.
Letter of Wishes
It is customary for the trust founder to communicate his will / dispositions to the trustees by means of a Letter of Wishes. Although not legally binding, this letter gives the trustees an idea of how the settlor seeks to have its trust administered.
What needs to be considered?
The trustees become the legal owners of the trust assets and the trustee (Settlor) gives up his rights to this property.
The trustees must hold the trust in favor of the beneficiaries and in accordance with the terms of the trust.
The trust assets are not available to creditors of the trustees.
Frequently asked questions about the Discretionary Trust
1. How long does it take to form a trust?
Usually 2 – 3 days after submission of the necessary documents.
2. Can any kind of fortune be incorporated into a trust?
Most types of assets, yes, although some holdings may sometimes cause difficulties in some countries. Therefore, it is advisable to clarify this before founding a trust.
3. Can a trust initially be formed with lower assets, which will later be used to raise additional assets?
Yes. You can have a trust with z. B. initially GBP 100 (£ 100 pounds) form, which then later assets are fed.
4. What happens if the trust founder (Settlor) dies?
The trust itself will be continued and the trustees will ensure that the trust assets continue to operate in the spirit of the trustee and trustee provisions.
5. Can the trust founder recover his assets to the trust if the trust loses its necessity?
If the trust founder himself is a member or added to the beneficiaries, he may require the trustees to split the entire trust and thus dissolve the trust.
6. Is it easy to dissolve a trust?
Yes, provided the fiduciary provisions provide for such regulations. Once the trust is split, the trust is dissolved.
Prices Offshore Trust
Establishment of a trust EUR 6,600.00
Statutory fees EUR 4.540,00
Annual fee of the trustee EUR 4,750.00
Mediation fees EUR 1,750.00
All prices are exclusive of VAT.
Other services are arranged or invoiced directly by the trustee (who is either a lawyer or a tax consultant) with the owner of the trust.