UK Offshore TrustsOffshore trusts may be used to protect personal and commercial confidentiality. The protective element can be crucial for an expatriate living in a jurisdiction where the appearance of affluence could have adverse consequences. In extreme cases this can even mean kidnapping for ransom, or at least the levying of a tax demand based on the appearance of wealth. The confidentiality achieved by an offshore trust can also protect an individual where, for example, the trust is used as the vehicle for negotiations regarding patents, trademarks, or royalties. An offshore trust can also be used to collect income and dividends, and to own assets used for commercial or for
investment purposes. UK Offshore Trusts & Property ManagersProperty can be owned, and property managers employed, through an offshore trust, although ownership of property occupied by the expatriate settlor might be vulnerable to look-through legislation.
However, where a long-term expatriate uses one or more offshore trusts to sever the direct link of ownership with assets such as property that would otherwise link him to a specific ‘onshore’ jurisdiction, he can begin to achieve significant tax advantages. The simplest of these is that transactions affecting an offshore trust’s assets will not incur any tax liability for the settlor of the trust. More importantly, the non-ownership of any assets within a jurisdiction can have the effect of limiting any claim that jurisdiction might make to levy tax on the individual. The primary and necessary condition for success in the use of offshore trusts is that the settlor should not exercise control over the actions of the trustee. This means that the sacrifice of ownership of the trust assets by the settlor should be genuine and irrevocable. UK Offshore Trusts & The Right TrusteeChoosing the right trustee will depend on the circumstances and nature of your trust. Take the time to choose a trustee in whom you have absolute confidence, whether it be a corporate or individual trustee. For a small trust that has been set up to provide for a family member, it's probably best first to consider another family member or a trusted family adviser to oversee the trust. For larger trusts with multiple beneficiaries and possibly multiple jurisdictions, it would be wise to consider the choice of a bank or institutional trustee. UK Offshore Trusts & Larger InstitutionsTypically, this type is backed by larger institutions with a wide range of services and larger financial resources should any problems arise. Another consideration, naturally, is cost. Costs for corporate trustees can vary enormously depending on the needs and requirements of the trust. The best course of action would be to consult your financial adviser and ask him for introductions to several trustees in order to compare the size, scope and range of services available before committing to a decision. Costs will be based on the value of the assets involved or a fixed charge when the trust is
established. For more relevant news items and magazine articles please click the links below: Article: Offshore Bonds - solutions for all seasons Glossary: Rensburg Fund Management Ltd Article: Jurisdiction on Jersey 
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