Establishing a Trust @ Healy Consultants

Tax implications of establishing a Trust
Establishing a Trust is a popular and efficient way of tax planning as there are several ways in which a Trust can reduce your tax exposure. The following information will help you determine whether establishing a Trust is the best solution for you.
Tax issues to consider when establishing a Trust
1.	A Trust can help reduce tax by:
	Eliminating the wealth tax which would normally be imposed on valuable assets
	Eliminating the capital gains tax resulting from the sale of assets
	Deferring or eliminating income tax, as long as the assets are kept within the Trust and no distribution is made.
2.	Transmission of assets to a Beneficiary may give rise to inheritance tax on the death of the Settlor, or if new Beneficiaries are substituted for those no longer alive. However,with proper tax planning, a Trust can help minimise such taxes.
3.	The property vested in a Trust is normally subject to gift tax, unless the Trust is revocable. This tax may be reduced by applying for the more favourable rate charged on donations to the Settlors' children. It is also possible to sell the assets to an underlying offshore company controlled by the Trust, if the resultant capital gain or profit tax is lower than the gift tax.
Contact Us
For more information on establishing a Trust, please email email@healyconsultants.com or telephone us at (+65) 6735 0120.
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Tax implications of establishing a Trust