The Benefits Of Offshore Trusts

We are an independent trustee and do not operate under any bank or organisation. Our team is comprised of highly qualified individuals that includes lawyers and accountants, who take pride in providing excellent service to clients

The Benefits Of Offshore Trusts

The use of an offshore trust can produce many substantial benefits. As always, proper professional advice needs to be taken in one’s country of citizenship, residence and domicile before implementation. The major advantages of an offshore trust include:

Asset protection: An increasing purpose for using offshore trusts is to protect property from attachment by creditors. Certain professionals, such as medical practitioners, company directors, accountants and lawyers may be particularly vulnerable to unexpected and costly litigation. The consequences of divorce in many countries may also be severe. Please refer to the Zetland Guide to Asset Protection for more details.

Intergenerational planning: The use of an offshore trust is an ideal tool for ensuring that property can be allocated in a manner that suits the settlor’s wishes and avoids the consequences of forced heirship or inheritance laws. Family succession planning: A trust provides great flexibility in providing for long term succession. For example, the education and maintenance of grand children or the exclusion of bankrupt or spendthrift relatives.

Privacy: A trust is a private agreement between the settlor and trustee. By establishing a trust in an offshore jurisdiction, privacy is greatly enhanced. Most offshore jurisdictions have strong privacy protection legislation and few of them have tax treaties permitting the exchange of information between governments.

Better environment: By moving offshore, one may take advantage of a less regulated environment with many opportunities. There may also be other international business benefits such as including the use of offshore companies owned by the trust.

Tax planning: An offshore trust may allow the reduction of liability to property, wealth or inheritance taxes in many countries and is a powerful tax planning tool for high net worth individuals. This largely depends on the nationalities of the settlor and/or beneficiaries. Tax savings: An offshore trust set up in a tax haven or low tax jurisdiction will suffer no local taxes on income or capital gains, thus maximising the productivity of capital owned.

In general, the cost of setting up an offshore trust is not high although as mentioned above proper advice should be taken in the settlor’s own domicile and this may incur initial expenses.

Offshore trusts are particularly useful as holding structures for the ownership of offshore companies, investment portfolios and offshore insurance policies. The use of an offshore trust should also be considered carefully before major lifestyle changes, for example, retirement or moving residence to a new country.

Basic Features Of Trusts

A trust is a relationship whereby a legal person (the trustee) holds property donated by a settlor (grantor in USA) for th...

Hong Kong Trusts

Hong Kong has a modern and competitive trust law on par with the standards of other major trust jurisdictions such as UK, ...

The Benefits Of Offshore Trusts

The use of an offshore trust can produce many substantial benefits. As always, proper professional advice needs to be tak...

Control and Protection Issues

The essence of a trust lies in the transfer of legal ownership of property from a settlor to the trustees. How can the set...

Investment Issues

The discretionary investment of trust assets is probably the single greatest area of difficulty for trustees. As noted, tr...

Professional Advisers

The advice of an experienced professional in the country of residence/citizenship of the settlor should always be sought b...

Zetland's Approach To Trust Administration

Zetland’s approach to trust administration may be summed up in just two words: devotion and objectivity. Devotion sinc...

Cost And Fees

Zetland charges trust fees on the following basis and does not generally charge fees as a percentage of assets under manag...

Glossary Of Trust Terminology

Asset Protection Trust - an offshore trust whose main object is the protection of a settlor’s property from future attack ...


Other Zetland Guides and Info Sheets available on request: Asset Protection; Belize Companies & Trusts; Belize International Foundations; Foundations; Hong Kong Trusts; Hong Kong Visas; Effective Offshore Operations; Seychelles; Mauritius; Singapore Residency; Trusts; Wills and Probate in Hong Kong; Offshore RMB and info sheet on Hong Kong company ongoing obligations.