Why go Offshore?
High net worth individuals are constantly worried about their wealth, investments, estate, liabilities for taxes and future creditors. Many of them have already taken measures to protect their assets. In an increasingly complex world, it is no longer just a concern only to high paid professionals, executives, business owners, and developers. It is everyone’s concern.
Today’s world is an environment filled with lawsuits, taxes, accidents and financial risks that can easily wipe out anyone’s assets. No matter how safe you feel, you can never be certain that the wealth you have built up over a lifetime won’t suddenly be taken from you tomorrow. Whatever your occupation or lifestyle, we all sail close to financial disaster and potential liability. If you are one of those people, you may now work through trust companies, custodians and banks which are licensed and fully regulated in the selected jurisdictions. Think about it, when you work hard for the financial rewards, you deserve a better way to protect your assets and you may have to work even harder to achieve this aim.
Protect your assets
With a properly located and structured offshore company, you can sleep at ease at night without worrying that your assets may be attached to a potential law-suit, that your investment be subject to a heavy tax penalty, or that your business be restricted by legislation and their private affairs.
Your privacy is our number one priority. We have the most stringent standards with regard to our client’s privacy. On occasions we do offer nominee services for clients. We can incorporate for you within a very short period of time an offshore company in a country outlined in this site. In fact, if you choose from our list of ready-made shelf companies, we can even begin to transfer your assets offshore today. These offshore companies allow you absolute control over your assets with utmost privacy. All business, including investment and banking, is conducted under corporate ownership, keeping the names of the shareholders, directors and officers anonymous. There is no corporate registry to review the names of past and current shareholders, directors and officers for companies incorporated in Bahamas, British Virgin Islands (BVI), Cayman Islands and other countries we offer. You can also benefit from extremely flexible legislation, ease of operations, no taxes and political stability. Of course, it is always prudent for you to check with a lawyer in your country to confirm the legalities of relocating your assets.
Nominee Directors and Shareholders
In order to ensure complete privacy, you may consider the service of Nominee Directors and Nominee Shareholders / Board Members offered by us. Employment of professional nominees who agree to undertake an appointed corporate position may sometimes be one of the ways to avoid unnecessary disclosure of details of your affairs.
The advantages of using trusts
The use of trusts has for many centuries be regarded as an effective and legal tax planning method. It enables people to avoid the consequences of legal ownership of property and money while enjoying the benefits of ownership. A trust is a legal entity of almost unlimited flexibility, for holding and disposing of property.
The concept of a trust is a unique feature to ‘common law’ or English speaking jurisdictions. A trust is created when one person (known as the Settlor) transfers his or her assets to independent third parties (known as Trustees) who manage and control the disposed assets in favour of either known or unknown beneficiaries. By doing so, property rights are divided, the Trustee is recognized as the sole owner of the trust property at law and that the beneficiary’s interest is only recognized in equity. The ultimate effect of this division allocates to the trustee the burdens of property ownership and to transfers to the beneficiary the benefits arising therefrom.
It is essential that full autonomy be given to the Trustees to ensure that the trust is effective. Otherwise, the trust could be challenged as not settled and therefore was not a properly constituted trust instrument. If this happens then the Settlor would still be legally deemed to be the owner of the trust’s assets and therefore still liable to pay tax as an individual. Serious consideration must be given since the Settlor will not have any direct control over what were formally his assets after the formation of the trust. A tailor made trust agreement or deed is therefore required to specify how the trust’s capital and income are to be held, managed and distributed as well as the investment powers of the Trustees. The Settlor may also appoint a protector (normally a trusted member of their family or business associate) who will oversee the Trustees and normally be a co-signatory to the Trust account. Besides, a trust establishes a fiduciary relationship with respect to property, subjecting the Trustee who holds title to the property to equitable duties to hold and administer the property for the benefit of beneficiaries. Thus, the Trustee must have fiduciary duties to perform and the beneficiaries must be named or ascertainable. Additionally, the beneficiaries are the only persons with the right to enforce the trust agreement or deeds.
Types of Trust
Fixed trust agreements set out precisely who will benefit and when under the trust arrangement.
Discretionary Trust are normally used in the ‘offshore’ world to ensure that the Settlor has divested himself of his assets. It also provides sufficient benefits to the intended heirs by leaving the amount of capital and/or interest to be paid to the unnamed beneficiaries at the sole discretion of the Trustees. The Trustees not only have the ability to control when and what type of payment should be made but also ensure that the beneficiaries are not immediately tax accountable.
Irrevocable and Revocable Trust
Trusts may be either irrevocable or revocable. In the latter case the trust is called a “grantor trust”. In the case of an irrevocable trust, the trust assets are not usually considered to be part of a deceased Settlor’s estate, and passes to the beneficiaries without probate or estate taxes.
Who can use a Trust
Until recently, there were virtually no restrictions on who could make effective use of a trust. However, both common law and statute have severely reduced the legal employment of trusts for those tax domiciled in countries such as the United Kingdom and the United States. Notwithstanding these restrictions, Trusts are still very valuable weapons in the tax planners since virtually no civil law country has any effective anti-trust legislation, meaning that they have become increasingly popular with those located in Europe and the Asia.