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| Offshore Trust Formation | |
| Offshore trust formation is a highly effective tax planning and asset protection tool. Healy Consultants assists with all aspects of offshore trust formation. The following information will help you determine whether offshore trust formation will fulfill your personal or business objectives. | |
| Advantages of Offshore trust formation | |
| 1. | With offshore trust formation, the Settlor divests asset ownership. Since they are legitimately held offshore, trusts are unattractive for creditors. |
| 2. | With offshore trust formation, the Settlor's investments, as well as those of the Beneficiaries, remain confidential since the assets are held in the Trustees' name, whose details remain private. |
| 3. | Offshore trust formation is a tax-efficient structure since they are a private agreement between concerned parties and therefore need not be registered with any tax authority. |
| 4. | There is no legal requirement to file the accounts of a trust or have them audited following offshore trust formation. |
| 5. | If well managed, offshore trust formation is an excellent way to avoid liability for asset transfer tax or inheritance tax. |
| 6. | Some businesspeople use offshore trust formation to hold and manage an offshore company which is trading internationally. Stocks, bonds and cash investment products gained during international operations may legitimately be held in offshore trusts without being taxed. |
| 7. | Offshore trust formation is an ideal way for expatriates living in unstable countries to protect their assets. |
| 8. | Offshore trust formation can be used like a Will to arrange for business ownership, investments or other wealth to be passed to inheritors. However, they are easier to administrate than Wills. |
| 9. | Offshore trust formation is an excellent alternative for property ownership than a Limited Partnership, since the home mortgage deduction of interest is retained if property is placed in an offshore trust. |
| Disadvantages of Offshore trust formation | |
| 1. | The principal disadvantage of a Trust is that the Settlor must renounce control or benefit from the Trust absolutely. If our client is both a Settlor and Beneficiary, he/she is open to claims by creditors that the Trust is a sham and they are wilfully seeking to defraud them. |
| 2. | There are sometimes practical difficulties in transferring assets across national boundaries and this may be illegal depending on the nature of the assets and the country of origin. We encourage clients to seek professional tax guidance from Healy Consultants prior to offshore trust formation. |
| Other points to note with offshore trust formation | |
| 1. | If the Trust Settlor dies, the Trustee continues to handle the assets of the Settlor according to the Letter of Wishes and distributes the Trust benefits (payments, shares, yields, compensations, various financial or material advantages, etc.) among Beneficiaries. |
| 2. | A trust is a relationship in which a person or entity holds legal title to certain property, but is bound by fiduciary duty to exercise that legal control for the benefit of one or more individuals or organisations. |
Healy Consultants fees for offshore trust formation Our fees for offshore trust formation depend on your chosen jurisdiction. For further information on the different options availablem, kindly follow this link. |
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| Contact Us | |
| For more information on trusts, email email@healyconsultant.com or telephone us at (+65) 6735 0120. | |
| Back to Trusts and Foundations page. | |
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| © 2003 Healy Consultants Pte Ltd | OFFSHORE COMPANY SET UP SERVICES |
