Trust Formation

Why an offshore trust?

Trusts may be established for a variety of reasons including estate and tax planning, asset protection and continuation of business activities.

Asset Protection. One of the most common uses of an offshore trust is for asset protection. The trust provides security and comfort against potential litigation, creditor and damage awards.

These days, corporate directors use trusts to protect their personal assets from personal liability claims that could arise as a result of the assumed liability that comes with the directorship.

Obviously, the tax advantages and consequences of using an offshore trust will depend on the unique circumstances of each individual. However, when it comes to tax planning, a trust can be set up to segregate wealth and avoid the often-times punitive domestic tax load imposed on the disposition of an estate through inheritance.

For individuals who are nearing retirement and are contemplating emigrating to a warmer climate, offshore trusts offer some very attractive tax planning opportunities. As a general rule, the earlier you establish your offshore trust, the greater the tax benefit.

Offshore Trusts Defined

Print this page