Trust structures are created and used to place assets under the ownership of a separate legal entity, thus distancing the former owner and permitting certain types of protection and tax advantages. The purpose of this article, is to highlight some of the benefits that may be available to someone considering such a structure. Another key advantage to the trust structure is the benefits achieved when planning for estate taxes or transfer of assets to heirs. By maintaining a trust structure in an offshore tax haven, one has the opportunity to pass along trust assets free from inheritance taxes. In addition, if one is concerned that a child may squander the inheritance, the trust vehicle provides a mechanism where not only there are tax benefits, but also controls as to how the beneficiaries are to obtain funds.
Trusts also provide another advantage.
Most likely, this would be you. That is to say, the person or entity placing property or assets inside the trust. The person, persons, company, bank, attorney or whom-ever has been assigned with the task of managing and safeguarding trust assets. In reality, the trustee could be either a natural person or a company. Regardless of who is named as the trustee, it is that entities responsibility to manage the trust assets sensibly and to make sure that the wishes of the grantor are carried out.