The most important aspect of a trust is its asset protection features. The trust concept has truly stood the test of time and has been evolving for centuries. Trusts are most commonly used as estate and tax planning vehicles (for family wealth preservation), and as commercial vessels (to facilitate commercial transactions).
A common misconception is that the offshore trust is reserved for the wealthy. This statement makes more sense if you substitute the word wealthy with prudent. It is prudent and wise for a person to manage his affairs in such a manner so that his wealth is protected from the vicissitudes of life.
A trust is a legal arrangement whereby a person (the settlor/grantor) settles assets into the custody of a trustee, who in turn manages and administers the assets to the benefit of the trust beneficiaries. Ultimately the trust concept legally separates ownership and beneficial interest in the trust property.
Careful planning is essential to implement the correct trust structure. Upon the proper settlement of a (discretionary asset protection) trust, ownership of and title to the assets are transferred to the trustee that henceforth owns the assets (in their capacity as trustee of the trust), whilst the beneficiary obtains an equitable right to the trust property referred to as beneficial interest. Thereafter, the assets no longer form part of the Settlor’s estate and is therefore out of reach of creditors. Likewise, upon the Settlor’s death or for taxation purposes, the assets previously settled upon trust do not fall within his or her estate and is not subject to probate or taxes.
The Bermudian trust is often used as an estate planning vehicle in concert with a Settlor’s onshore advisors. Within the commercial sphere the Bermudian trust and underlying company (incorporated anywhere in the world) is utilised as a vehicle to facilitate a wide variety of commercial transactions from a tax neutral jurisdiction.
Bermuda is the oldest British Overseas Territory with a high degree of self-governance. The official head of State is the Queen, who appoints the Governor as her representative. St. George’s Trust Company Limited is licenced by the Bermuda Monetary Authority (BMA) to conduct unlimited trust business. The BMA also serves as the regulatory authority with strict terms and conditions legislatively attached to the trust license. Bermuda has modern asset protection legislation relating to both Companies and Trusts.
The economic landscape was changed radically in the space of a few short weeks during the third and fourth quarters of 2008. As the world is licking its wounds it is apparent that poor management and insufficient corporate governance at a variance of levels played a major part in this meltdown. Due to the development and flexibility of a trust structure a person can indirectly (or even directly) retain an overseeing role with the trustee and maintain a degree of continued involvement.
There are numerous international law firms in Bermuda and a wide array of specialist firms dealing in corporate affairs. Bermuda’s proximity to the United States of America and Canada provides a significant advantage over competitive jurisdictions.
By settling a Bermudian trust with St. George’s Trust Company Limited, the management and administration of the trust assets are placed in the hands of seasoned professional trustees who are approachable, accountable and responsible and have a proven track record of excellence. We provide personalised service, tailored to each client’s specific needs. Bermuda is a leader in the field of commercial and trust law development. Coupled with a stable economy, government and strong international relations it is clear why Bermuda competes as a top international financial centre and St. George’s Trust Company is the best option for your trust needs.
