The concept of protecting and securing assets by placing them within a trust structure dates back to the 11th century and today those who offer wealth management services often find that the utilisation of an offshore trust is fundamental to protecting their client’s confidentiality and asset security.
Because assets held within an offshore trust are held under the name of the trustee rather than the settlor the settlor’s privacy is protected, furthermore a trust document is not a public document therefore the assets within the trust and beneficiaries of the trust are also protected.
Wealth management used to be a term used to define the careful investment of an individual’s financial assets, nowadays however wealth management has far more to do with asset protection because not only has the world become a far more litigious place but international governments are becoming greedier and finding more and more ways to extract taxation and restrict freedom.
An offshore trust structure can be useful to an individual wishing to remove assets away from the reach of unfair litigation for example and because a trust removes a layer of transparency it can be harder for someone to decide whether or not an individual is a financially interesting target to sue.
Those who have substantial business and personal assets often find that an offshore trust structure is essential to their personal wealth management needs and also for the protection and security of their business.
An offshore trust can also help with ongoing tax planning and estate tax planning but care must be taken to ensure that the settlor who wishes to establish the trust does not create a taxable action by placing assets within the trust structure. Offshore trusts and taxation are incredibly specialist areas of expertise and careful selection of a trust company, trustees and offshore jurisdiction are essential for the individual to ensure their actions are legal, tax efficient and appropriate for their requirements.
Anyone considering establishing an offshore trust would be wise to seek professional advice and assistance. Trust law is complex and because assets placed within an offshore trust are placed outside the direct reach of the settlor it is essential that the trust is structured perfectly for the settlor according to his direct wishes and requirements.
Those who have specific wealth management needs may find that an offshore trust structure satisfies certain criteria, but such a structure usually forms part of an overall financial strategy that will base its success on diversification and ongoing management.
