This provides anonymity for the parties involved and professional Trustees are well aware of the need to maintain confidentiality at all times. Trusts were originally, and commonly still are, used to protect the wealth of individuals and family groups. Taxes differ from country to country and may be assessed on income, capital gains, gifts, wealth, and on death. By transferring assets into a trust it may be possible to reduce or eliminate taxes arising in an individual's country of residence, citizenship, or domicile. What is more likely, however, is that taxes can be eliminated in other countries in which the individual wishes to invest some part of his wealth.
Assets held in an individual's name are often on public record.
Further, when an individual dies, it is usually necessary to undergo Probate formalities before the assets are realized. This can cause delays, raise costs, and potentially expose the ownership of the assets to public scrutiny. However, assets that can be transferred to and held in a trust may no longer be legally owned by the individual and need not be declared. Assets may be at risk of expropriation or similar confiscatory measures in the individual's country of citizenship, domicile, or residence. By transferring assets into a Trust governed by the laws of another country these risks may be reduced or eliminated.