Should You Set up an Offshore Trust Company?

Creating an Offshore Trust Company in Jersey

Many people have the idea that trusts are a very complex and time-consuming organization that only very rich people use. Nothing can be less similar to the truth, and the benefits of trust far exceed the time required to create it. This site describes in detail what the offshore trust comapny is, how you can establish trust and what are the advantages of placing your assets in a trust.

What is an offshore jersey trust?

The principles of trust are the same in all jurisdictions; trusts must always have a trust founder, a trustee, a beneficiary and a guarantor. Simply put, the founder transfers its assets to a trust, where the appointed trustee will manage and manage them. This trustee will act as a third party between the founder and the beneficiary, which received all the assets. As a result, the founder loses all property rights. There may be a need for a guarantor to ensure that the trust of the trust declaration is consistent with the activities and to ensure high management standards on the part of the trustee.

In a trust on Jersey, the trustee may not be a resident of Jersey; there is no need to pay anything for the creation of a trust, both before the establishment and during the existence of the trust as a legal entity.

Why create an offshore trust in Jersey?

Jersey’s economy is very stable and enjoys a well-deserved reputation as a jurisdiction in which it is beneficial to create trusts. Although the activities of all trusts are regulated by the Jersey Finance Commission, there is a high degree of confidentiality and security.

Types of Jersey Trusts

There are 4 main types of trusts in the jurisdiction of Jersey. These include Fixed Trust, Accumulative Trust, Discretionary Trust, and Target Trust.

– A fixed trust is a trust in which the interest to be received by the beneficiary is determined by the terms of the trust agreement, and there may be a time limit.

– Savings trusts are used by founders to provide for families and future generations, and the value of assets increases over time.

– Discretionary trusts are trusts in which the trustee is given the right to decide at his own discretion what share of capital each beneficiary will receive.

– Target trusts are trusts created for purposes other than charitable or beneficial ones.

Benefits of creating an offshore trust in Jersey

– Anonymity, as a result of which the trust should not be registered by any government agency in Jersey. Moreover, the trust’s activities are strictly confidential, since neither the beneficiary nor the founder is a Jersey resident.

– Tax planning, as a result of which a trust can legally help you avoid taxing your assets and achieve an optimal taxation option.

– Jersey has also undertaken to enter into the Agreement on the avoidance of double taxation (it has this with the United Kingdom and Guernsey) and an agreement with the United States regarding the exchange of specific tax information.

– Asset Protection

– Planning inheritance so that while maintaining confidentiality to provide for your family, which is impossible in the preparation of the will.

– Avoidance of the right to an obligatory share in the hereditary mass, which allows the founder to freely choose between whom he/she wishes to distribute his soy state and in what amount.

– Stability – when placing your assets in trust in any jurisdiction where there is a strong political infrastructure, your condition is not in danger.

– There is no capital tax in Jersey, i.e. capital invested in a trust can be increased without taxation.

– No inheritance tax.

– No tax on wealth or donation.

Creating an offshore fund in Jersey

Jersey funds can be defined as “self-government independent legal entities”. Although they are similar to Jersey trusts, they are used by corporations and, after their establishment, acquire all the qualities of a legal entity.

In October 2008, the Law on Funds was adopted in Jersey, which entered into force on July 17, 2009. Jersey has already developed methods for applying the law, and in the near future, it will be possible to merge funds, and also merge funds with other corporations.

What is an offshore fund in Jersey?

The following requirements are made for a jersey foundation: the presence of a founder, guarantor, beneficiary and members of the board. After the foundation is created, it acquires the qualities of a legal entity and takes possession of the ownership of the foundation. However, there is no requirement for a trustee, participants or shareholders in the fund.

Assignment funds to jersey

– Personal status protection

– inheritance planning

– Planning taxes on inherited property

– Avoidance of the right to an obligatory share in the hereditary mass

– High level of corporate control and management

– Employee benefits, retirement planning, and retirement planning

– Charity

– The opportunity for organizations to participate in encouraging employees to sell stocks and use insurance schemes.

Advantages of offshore funds in Jersey

– Tax benefits in terms of avoiding double taxation of capital gains

– Efficient and structured distribution management system and state management

– Reduced Inheritance Tax

– Payment of reasonable compensation for the services you provide to the fund

– donations to the fund are excluded from taxation

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