We work closely with High-Net-Worth clients to structure and protect their wealth to secure their financial future. Our global footprint includes world-leading jurisdictions for trust structuring, offering clients robust protection and compelling financial benefits.
A Trust is a relationship where assets are held by individuals or a corporate entity for the benefit of another and are widely used vehicle for asset protection, security and wealth planning. They have a wide variety of uses and offer protection for property, investments, bank deposits and life insurance policies.
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Provision of professional, independent or corporate Trustees
Formation, registration, transfer or termination of Trusts on your behalf
Assurance of adherence to the investment objectives
Provision of bespoke solution to regulatory constraints
Maintenance of the Trust’s records and preparation and execution of Trustee resolutions
Management of Secretarial and governance aspects relating to your Trust
Signing and execution of any required statutory documentation
Arrangement and facilitation of Trustee meetings
FAQ
You ask, we answer
How to choose where to establish a Trust?
The choice of jurisdiction on where to establish a trust is a critical decision as this will determine the level of protection, control and financial advantages available. Key characteristics to look for are a stable political environment, with a robust legal system to provide strong protection. Many choose an offshore jurisdiction, such as the Isle of Man, due to its attractive fiscal benefits.
Why establish a Trust in the Isle of Man?
The Isle of Man has a well-established and reputable trust law system, which is based on English common law principles. The Islands robust legal environment offers strong protection for both the settlor and the beneficiaries. The Isle of Man Trusts Act 2001 offers a broad range of structures to meet individual needs. In addition the jurisdictions legal environment, it has an attractive tax environment offering clients many compelling benefits.
What Trust structures are available in the Isle of Man?
Discretionary Trust: the trustee has the discretion to decide how and when the trust’s assets are distributed to the beneficiaries. The settlor does not specify an exact distribution plan but instead provides guidelines or a “letter of wishes” to the trustee. This type of trust is often used for estate planning, family wealth preservation, or asset protection.
Fixed Interest Trust: the settlor specifies the exact shares or amounts that each beneficiary will receive from the trust. This means the trustee has no discretion over the distribution of trust assets. This structure provides clear and predetermined distribution plans, which can be useful for straightforward estate planning and ensuring that beneficiaries receive fixed portions of the trust’s assets.
Purpose Trust: established for a specific, non-charitable purpose rather than for individual beneficiaries and often used for purposes such as charitable activities, protecting assets for a particular cause, or maintaining family assets. A purpose trust requires a clearly defined purpose and a trustee to administer the trust in alignment with that purpose. It offers flexibility for long-term objectives, such as preserving family estates or ensuring that assets are used in a way that supports a non-profit cause or a business venture.
Charitable Trust: set up to benefit a specific charitable organization or cause. These trusts are generally exempt from certain taxes, making them an attractive option for philanthropists and individuals wishing to make charitable donations while enjoying tax benefits.
Life Interest Trust (or Income Beneficiary Trust): gives a beneficiary the right to receive income (or other benefits) from the trust for the duration of their life. After their death, the assets are distributed according to the terms of the trust to the remainder beneficiaries. Its commonly used in estate planning to provide for a surviving spouse or family member during their lifetime while ensuring that the trust's assets are preserved for future generations.
Settlor-Reserved Power Trust: allows the settlor to retain certain powers over the trust, such as the ability to change the beneficiaries, modify the trust terms, or remove trustees. While the settlor retains control over certain aspects, the assets are still technically held by the trust. These trusts provide a balance between maintaining control and achieving asset protection.
Protective Trust: designed to protect the assets from potential claims, such as creditors or in the event of divorce. This type of trust often has provisions to safeguard the assets of the beneficiaries in certain circumstances. It’s ideal for high-net-worth individuals looking to safeguard family wealth from creditors, divorce settlements, or other claims.
What privacy and confidentiality do the Isle of Man have to offer?
The Isle of Man offers a high level of confidentiality, known for its strong privacy protections. Information about trust beneficiaries and assets is not publicly disclosed, and the jurisdiction does not require the registration of trusts, ensuring confidentiality for settlors and beneficiaries. For those who prioritise privacy in financial matters, the Isle of Man offers a level of discretion that is not available in all jurisdictions.
What are the taxes in the Isle of Man?
• One of the most appealing features of the Isle of Man is that it does not levy capital gains tax, which can be especially beneficial for trusts holding appreciating assets such as real estate, stocks, or other investments. • There are no inheritance or estate taxes in the Isle of Man, which allows assets to pass to beneficiaries without the burden of additional tax liabilities. • The Isle of Man has a favorable income tax system, with a maximum rate of 20% on income. Certain income derived from investments may be subject to favorable tax treatment, depending on the structure of the trust. • Trusts in the Isle of Man are not subject to inheritance tax, which can significantly reduce the tax burden on beneficiaries when assets are passed on.
Does the Isle of Man impose Stamp Duty?
No, the Isle of Man does not impose stamp duty on trusts, which can be a significant cost-saving compared to other jurisdictions that charge stamp duty on the transfer of assets into a trust.
Does the Isle of Man offer strong asset protection?
The Isle of Man has a Tier-1 licence, which depicts robust regulatory controls, a reputable status in the global market and ease of doing business with banks and payment service providers.
What are the benefits of establishing a Trust in the Isle of Man?
• Robust legal environment • Transparent Regulatory environment • Attractive fiscal landscape • Political and economic stability • Flexible range of trust structures available • Excellent trust management services • Strong asset protection • Leading international reputation • No exchange controls
What succession planning benefits do Trusts have to offer?
Trusts are protective method to pass on wealth to future generations and can offer many financial advantages. By establishing a trust, individuals can control how their estate is distributed and manage the tax liabilities associated with inheritance and wealth transfer. Many individuals utilise trusts to preserve family wealth over multiple generations. Trusts can protect assets from mismanagement or wasteful spending, ensuring that wealth is preserved for future generations.
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