The Convention has been ratified by Australia, Canada, Italy and the United Kingdom and came into force on 1 January 1992. Apart from the tax planning and asset protection benefits afforded by offshore trusts, the other important advantages are Confidentiality and flexibility. The US has arduous reporting requirements concerning the transfer of assets into trusts and their ongoing management. In essence, these requirements extend to trustees, settlors and beneficiaries. There may be practical difficulties in utilizing trusts in civil law jurisdictions.
Trusts can be difficult to establish and administer.