There are some key advantages to holding your assets in an offshore trust. These types of trust help you to protect your wealth against any future uncertainty (whether personal, political or financial). Many individuals also use them to reduce estate taxes for loved ones after their death.

Here’s some useful information outlining what offshore trusts are, how they work, and the key benefits that they offer.


What is an offshore trust?

An offshore trust enables you to transfer your assets to a nominated trustee. They then legally own those assets, and have responsibility for their management. The trustee must also distribute the assets to the beneficiaries, according to the trust deed terms.

Offshore trusts are created in another country, not your country of residence. This is a tax haven, which offers numerous financial perks, and a greater level of privacy. When you establish your offshore trust, you’ll arrange the terms, whilst adhering to the appropriate legislation.


Who is an offshore trust for?

An offshore trust is ideal for people who wish to:

  • Transfer assets to their family
  • Protect their assets against anything unforeseen in the future
  • Enjoy the advantages of centralised reporting
  • Limit estate taxes (upon their death)
  • Consolidate the ownership of their wealth in a single location, rather than in several countries


What are the key benefits?

Here are just a few of the major advantages of an offshore trust:

  • They’re tailored to your needs

    Each offshore trust is designed to match your requirements.

  • They offer certain tax benefits

    By giving up ownership of your assets, you may be able to avoid paying certain taxes (e.g. gift or capital taxes, or higher income tax rates).

  • They provide protection

    It’s always risky holding assets, especially in particular countries in the world. For example, political instability can have a knock-on effect on the value of your assets, and can negatively impact your future wealth. An offshore trust enables you to better protect assets from the following:
    - Family issues (e.g. settling a divorce)
    - Business negligence
    - Legal claims brought against you
    - Creditors

  • They help you provide for the next generation

    If you’d like your children or grandchildren to be able to benefit from your assets, setting up an offshore trust is a great way to achieve this. Initially, their access to the assets can be restricted, then permitted when they reach a certain age.

  • They offer a good level of confidentiality

    In many offshore locations, the trust deeds aren’t registered publicly, which gives you greater financial privacy.


Other things to know about offshore trusts

Offshore trusts are a recognised way of protecting assets, in all common law jurisdictions. In fact, they’re highly useful when it comes to estate tax planning, and managing an international income.

If you’re looking to protect your wealth and want to find out more about offshore trusts, get in touch with Charterhouse Lombard today. We’re here to talk you through your financial options, and help you set up an offshore trust if required.