Isle of Man Trusts
As a concept, the 'trust' dates back to England during the Middle Ages, specifically during the Crusades, and developed as a method by which mediaeval knights could plan for, and protect their assets while they were fighting in foreign lands.
The trust is an arrangement whereby one party, the Settlor vests the title to property in a second party, the Trustee, for the benefit of a third, the Beneficiary. All three parties must be present for a valid trust, though there is nothing to prevent one person or entity being any two of the parties. The same person cannot act in all three positions.
Benefits of Creating an Isle of Man Trust
The benefits and practical uses of a trust are varied, depending of course on the particular scenario but they are often used advantageously in the following circumstances:
- To enable the Settlor to plan for future generations of his or her family;
- To ensure that the wishes of the Settlor are honoured after his or her death;
- For advantageous tax planning purposes, often structured with Isle of Man companies;
- To enable assets to pass outside of the Settlor’s estate and thus avoid the probate procedure;
- To protect the Settlor’s estate and assets, perhaps from spendthrift or irresponsible family members;
- To provide funds for educational purposes;
- To benefit charitable causes;
- To make provision for a vulnerable or incapable family member; and
- In specific cases, to avoid forced heirship rules.
With the correct planning it may be possible for an individual, family or business to take advantage of these benefits through the utilisation of an Isle of Man trust or in conjunction with a corporate structure.
Corporate Options Limited is be able to offer full trustee services including but not limited to:
- trust formation;
- acting as a trustee;
- trust administration;
- acting as a protector; and
- acting as an enforcer (for Purpose Trusts).
For more information please feel free to contact [email protected] or call 00 44 (0)1624 612888.