Trust structures are highly regarded in many worldwide jurisdictions for their ability to successfully separate ownership of assets from their beneficial enjoyment. We are experienced, professional trustees. Our significant experience ensures that we appreciate and understand the ever-changing legal and regulatory landscape in which we need to operate to provide our clients with accurate and up-to-date advice.
We offer a comprehensive range of trust services, all of which can be tailored to the exact level of support and assistance our clients require. Trusts can be used to good effect in a range of circumstances.
Mitigate Tax Liability
In circumstances where a client is a foreign domicile and/or resident, then creating a trust structure can legitimately reduce or eliminate income tax, capital gains tax and inheritance tax.
Preserve Asset Ownership
Structured correctly, a trust can offer both families and businesses a means of preserving the ownership of assets. The main attraction of trusts is that they give the individual establishing the trust greater confidence in how assets will be used in the future. In this regard trusts offer a means of holding and managing money or property for people who may not be ready or able to manage it for themselves.
Succession Planning
Trusts are particularly useful when planning how money and assets should pass from one generation to another, especially when family structures are complicated by divorces and subsequent marriages. This, coupled with the growing frequency of marriage breakdowns, make trusts an excellent tool for establishing long-term plans to ensure a family’s financial security.
Charitable Provision
Trusts are commonly used for charitable funding. As well as the large, well-known charitable trusts, there are a wide range of smaller trusts created to help fund a particular good cause. One of the advantages of the trust structure for charitable funding, is that the person setting up the trust can simply indicate how they wish the funds to be used (for example, ‘for medical research’), but leave it to the trustees to decide over time which research projects should be funded. The settlor can leave a letter of wishes for the trustees expressing their wishes in further detail, if desired, or most decisions can be left at the trustees’ discretion. This highlights the benefit of the flexibility inherent in trust structures when someone is making long-term commitments.
- Tailored insight and advice into the appropriate trust structure
- Establishment & ongoing administration for multiple types of trusts
- Multi-jurisdictional solutions
- Access to Knox group tax advisory expertise
- Provision of key personnel (professional Trustees)
- Provide a holistic approach to serving our clients
Most flexible form of offshore trust
Mainly used in wealth protection and tax planning
Settlor normally provides trustees with a ‘Letter of Wishes’ which sets out guidance for the trustees on the future of the trust assets
Trustee powers are wide ranging and most activities are entirely at their discretion
Also known as a fixed interest trust or life interest trust
Principal beneficiary (often spouse of settlor – the life tenant) entitled to income of the trust during their lifetime, or for a fixed period
Upon death of life tenant or end of fixed period, their interest ceases and passes to a different class of beneficiaries, quite often the children of the settlor
Interest in possession trusts are commonly used for asset protection purposes
Established for purposes that are certain, reasonable, possible and not illegal, immoral or contrary to public policy
No beneficiaries, so a person acting as enforcer has power to enforce the purpose of the trust
Created by trust deed and must have at least two trustees
Sometimes referred to as an “orphan trust”, and is effective in yacht/aircraft financing transactions as it is possible to separate the ownership of the assets as part of an overall structure
Becoming increasingly popular amongst wealthy families and their advisers
Enables the client to retain a greater control over the trust assets
Can offer increased confidentiality
Enables rapid commercial decision making (such as family businesses)
Why Choose KHT?
- Clients at the centre of everything we do
- Wealth of experience, understanding and technical knowledge
- We nurture long term relations with clients and advisers
- Collective strength and expertise of the wider Knox group of companies
