The term ‘trust’ is used in Common Law, and was developed in the UK. It is used in a number of Commonwealth countries and in the USA. The concept involves a person (settler) transferring money or assets to a company that is managed by a trustee (the trustee is an administrative person who helps to ensure that the capital is managed in the best interests of beneficiaries).
In a letter to the trustee, the settler describes his wishes, including the beneficiaries of the trust.
Guernsey or Cayman Island
In contrast to a foundation, an underlying company is created, in which the assets are invested. The most commonly used destinations for such companies are Guernsey or Cayman Island. In these destinations the settler and the transferred capital are not registered, which provides them with a high degree of discretion.
A trust is normally used in connection with tax and inheritance planning.
Contact us for more information about trust.
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