Tax Efficiency, Asset Protection & Seychelles Offshore Trusts

Looking at the benefits and features of Seychelles offshore trusts such as tax reduction, privacy, security and confidentiality

Offshore trusts are practical solutions used by many people seeking tax efficiency and confidentiality who want to avoid forced heir-ship issues and ensure that they have planned properly to protect their assets, their wealth and their beneficiaries for the future.

In this particular report we’re going to be looking at tax efficiency, asset protection and Seychelles offshore trusts which provide both of these benefits and many more to those who choose the jurisdiction for the creation of their trust structure.

The Seychelles is a jurisdiction increasingly chosen for both personal and business asset protection purposes.  Trust law in the Seychelles is well established and trusts, trustees and all parties relevant to the establishment and management of a Seychelles trust are closely regulated, giving the Settlor (the person placing their assets in trust) greater confidence in the jurisdiction.

In terms of the direct asset protection and preservation benefits a Seychelles offshore trust can potentially offer a settlor, they include shielding assets that are vulnerable to attack from for example: -

• Legal claims – if you are known or thought to have wealth you are an obvious target for legal claims
• Inflation, currency and financial market fluctuations
• Expropriation by governments and other related “country risks”

Another reason why many use a trust established in the Seychelles is for taxation reduction purposes because Seychelles International Trusts are exempt from taxation in the Seychelles and what’s more, where appropriate tax can be reduced and/or deferred through the use of a trust for the Settlor and/or the trust Beneficiaries in their countries of residence or domicile – such taxes that can be avoided, deferred or reduced include inheritance, income and capital gains taxes.

Upon their death, a trust established in the Seychelles can also help a Settlor provide for their surviving spouse, children and even subsequent generations without those affected having to wait for the probate process before they can receive income or capital distributions or retain or take up occupation of real estate held within a trust.

In certain nations such as France and Dubai for example, there are statutory property rights such as forced heir-ship or enforceable spousal rights following a divorce that can pose a direct challenge or threat to wealthy individuals and their families.  A Seychelles offshore trust can provide the solution to these issues in certain circumstances – for example it’s the case that under Seychelles trust law the transfer by a Settlor of property into a recognized International Trust structure cannot be invalidated by any foreign rule relating to forced heir-ship.

And finally, trusts enjoy a high degree of confidentiality and offshore trusts in the Seychelles are certainly no exception to this rule because no trust information is available on public record in the Seychelles.