Wealth Services

An asset protection trust is the generic term for any trust arrangement intended to shield assets from unwanted claims. Use of a trust for asset protection is a tactic that dates back to the very inception of the trust, before there was any codified law or case precedent relating to how a trust arrangement is viewed by the courts. The early prototypical use of trusts dates back to the days of the crusades, when knights would place legal ownership of their estates with their friends and trusted companions "trustees". The necessity for legal codification issue arose where the knight would unexpectedly return from the campaign and the trustee had mismanaged the asset. Court would then be asked to rule upon the disputes therefore arising. Based upon the rulings of the chancellor, (whose role later became that of the courts of equity), the law relating to trust arrangements became standard

Trusts, those ubiquitous structures that govern large parts of our commercial and legal experience, tend to be shrouded in mystery. In our society, wealth and power flow through trust structures, out of sight of the public eye, in private and privy only to those who create, administer or benefit from them. The rich frequently use trusts to ensure that their wealth expands without erosion through taxation. Within the courts of equity, judges rely upon these structures to pass judgements, construing their existence within all manner of unexpected scenarios. Within the courts of equity it is actually not necessary for a trust deed to exist, or indeed even for the actors in the relationship to be aware that a trust exists, for a judge to decide that a trust exists. However, for the purposes of asset protection, it is essential that trust deeds are in place and that there is very clear un

A particular advantage of using offshore trust structures is that tax liabilities are only incurred when money is taken into the UK. Capital gains can frequently be realised tax free, and therefore the accumulation of capital funds can occur far more quickly than when tax is deducted annually irrespective of whether the funds are taken and utilised or not. Should you be considering the purchase of a home abroad for example, it is often pointless to pay tax in the UK on money which ultimately will never be spent here. A well established offshore trust will usually be operated in a tax free or low tax jurisdiction. Every piece of an offshore tax planning strategy must be carefully designed to ensure compliance with tax laws, legally watertight management and ownership of underlying assets, and that the distribution of these works harmoniously with the overall plan. A further cruc

For the purpose of wealth protection, privacy and asset management, international tax planning and wealth management practices frequently make use of trusts and private foundations. These can be located on-shore or offshore, and used correctly they provide tremendous benefits in terms of reducing the taxation that wealth attracts. Differences in each clients personal circumstances, objectives, lifestyle choices and risk profile all need to be taken into consideration in planning the use of these vehicles, and choosing the tax jurisdiction in which they should be based. The experience, expertise, integrity and knowledge of the trustees is also of paramount importance, while a protector is also a good position to establish to ensure that the trustees act in a correct and proper manner. Within trust vernacular, the one who establishes the trust or contributes the assets (also known as

Offshore trusts are an essential tool for asset protection. In many countries, inheritance law determines who should be the recipient of ones’ estate, irrespective of your wishes. Divorce settlements may also compel outcomes not in accord with an owner’s desire. In these instances, the protection both of the assets and the grantor / beneficiaries’ privacy can be successfully achieved through the careful use of well planned offshore trusts. For wealth management purposes, tax planning, and asset protection, the offshore trust is often an essential tool. Given the complexity of the relationships that need to be created, experienced international tax planning advice is crucial. An expert in the field will allow you to understand and consider all of your options before implementing your strategy. No two individual’s circumstances are alike, and therefore no two tax planning str

Property trusts usually refers to a type of discretionary trust where the body, corpus or asset held in trust is one or more properties. There are a number of benefits to the creation of such a trust, namely: Inheritance Tax Planning – where the beneficiaries of the estate may not have to sell a property to pay for a large inheritance tax bill on the death of the settlor; Capital Gains Tax planning – the trust arrangement may reduce CGT; Rental Income – Rental income from properties held in trust will remain in trust, there can be reduced taxation on rental income. In order to ensure that the trust is legally correct it is important to have a trust deed drafted which reflects the purpose of the trust and the beneficiaries associated with it. The use of a protector to oversee the trustees can also be a very wise check / balance to ensure the smooth running of the trust over