A trust is a kind of legal relationship whereby a person or an institution (referred to as the "principal" in a trust relationship) based on this legal relationship, transfers its ownership of assets to another person or institution (referred to as the "trustee" in a trust relationship), allowing the trustee to manage or dispose of the principal's assets in the interests of the beneficiary or for a particular purpose in accordance with the purpose of the trust contract.
The Purposes and Functions of Offshore Trusts
- Family planning
- Tax saving
- Property independence
- Protection of property
- Estate succession
- Corporate structure
- Planning of immigration
- Charity/ Non-profit purpose
The Benefits of Setting up Offshore Trusts
- Family Protection:
Providing protection for family assets and protecting assets from infringement; for example, assets will not fall into the hands of extravagant heirs, or the family is fighting for property, etc.
- Asset Confidentiality:
As the trust assets have been transferred to the trustee's name, and the trust contract neither needs to be registered with the government agencies, nor to be publicly disclosed, the personal information and interests of the principal and beneficiaries are kept absolutely confidential.
- Risk Avoidance:
Through the internationalization of assets, political and national risks can be avoided.
- Asset Protection:
With the permission of the law, the establishment of a trust protects the assets from creditors' claims.
- Asset Coordination and Management:
Putting together the overseas assets of the principal and beneficiaries in one trust management platform simplifies and unifies management.
- Asset Allocation:
Prearranging assets to allocate to family members, friends & relatives, charities and other institutions. In particular, in countries with inheritance restrictions, trusts can flexibly arrange assets to inherit and to exempt wealth from being affected by complex probate procedures, so that designated beneficiaries can inherit the deserved property as quickly as possible.
- Tax Planning:
Reducing or even exempting from domestic income tax, capital gains tax, gift tax, property tax, estate tax, etc.
- Flexible Usage:
The trust contract can maintain a moderate degree of flexibility, to ensure that as the environment changes, the trustee can still seek the best benefits for the beneficiaries.
Consulting for Offshore Trust Planning
Setting-up Services
- Reviewing and amending the completed documents
- Second review of the completed documents
- Account-opening documents become effective after signing
- Standardized trust contracts and tailor-made trust contracts
Perennial Services
- The annual consideration of the matters related to trust
- Annual accumulation earnings; annual meeting minutes
Other Services
- Acquisition or disposal of assets and allocation
- Addition or removal of beneficiaries
For business consultation, please contact us