Trusts utilize a multi-system of legal relationships to serve the protection and management of assets. A settlor or grantor forms a trust and its assets are transferred to a trustee. An appointer or protector is then appointed to oversee the trustee named in such trust deed, ensuring that the trustee is holding the assets in accordance with the interests of the beneficiaries. The establishment of an offshore trust depends on an understanding of the interaction between relevant domestic and international laws. Zhong Yin Law Firm is able to provide the beneficiaries with the most complete and risk-free legal advice and, during the period of the trust, assist clients with reaching desired effects and outcomes.
- Offshore trust structure planning
- Assistance with trust establishment
- Arranging/acting as a trustee
- Legal advice on tax issues
- Drafting/advising on trust-related legal documents
- Trust asset planning
- Providing annual net asset statements
- Assisting with transfers of net assets
- Act as an appointer
- Discussing the purpose for and planning structure of special trusts
Purposes for establishing offshore trusts
- Family heritage
- Tax relief
- Asset protection
- Asset confidentiality
- Flexible distribution
- Enterprise model
- Immigration planning
- Charitable / non-profit purposes
Common offshore trust locations
- British Virgin Islands
- Hong Kong
- New Zealand
- Cayman Islands
- Labuan (in Malaysia)
Advantages of setting up offshore trusts
- Family Protection: To protect family assets, safeguarding them from abuse, preventing them from falling into spendthrift hands, and preventing family competition.
- Avoid Risks: Offshore assets are more able to avoid political and national risks
- Tax Planning: to reduce or even eliminate domestic income tax, capital gains tax, gift tax, property tax, and inheritance tax.
- Confidentiality: As assets are under the name of a trustee and the trust deed need not be registered with government agencies or publicly disclosed, personal information and interests of the beneficiaries are strictly confidential.
- Asset Protection: In some cases and as permitted by law, some trusts can protect assets from creditor claims.
- Coordination and Management of Assets: With assets being inducted by the principal/beneficiary into an offshore trust, such trust serves as a management platform that unifies and simplifies asset management.
- Asset allocation: assets are prearranged to family members, friends, charities, and other organizations. In particular, trust assets allow for flexible arrangements in an otherwise stringent environment, allowing beneficiaries to access their inheritance more efficiently.
- Flexibility: trusts retain flexibility, ensuring that beneficiaries are able to seek the best benefits for a trustee even during external environmental changes.