The Advantages of Trusts

Asset Preservation

The trust can be a useful tool in protecting family assets for the settlor and their family.

The trustees having control of the assets of a trust may ensure family members who are unable to manage their own financial affairs are protected and that distributions are managed in order to protect the long term interests of such family members.

The assets in trust may be protected from claims made by future creditors.

Individuals or companies resident in politically unstable areas may protect assets by the transfer to a jurisdiction such as Guernsey which is politically stable and has a high level of financial probity.

Management of Probate

Trusts are very well suited to manage the succession of assets. They may be used to avoid forced heirship rules, lengthy probate and ensure the rapid distribution of wealth. And in certain cases to mitigate inheritance tax on death.

Tax Planning

Trusts for non-resident Guernsey individuals (settlors and beneficiaries) would not normally attract any tax liabilities in Guernsey.

This can give considerable scope for the management of worldwide assets and or a world-wide class of beneficiaries whilst mitigating or deferring tax liabilities.

It should be noted that there may be tax consequences for the settlor and or beneficiaries of a trust depending on their residence, domicile or nationality. It is essential that professional advice be sought in this area prior to the formation of any trust. Owen Trust Limited does not provide Tax advice in Jurisdictions outside Guernsey.