A trust can be used to hold family wealth, for future generations
Simply put… A trust means exactly that
- Incorporation services
- Secretarial and registered office services
- Directorship services through in-house corporate directors or individuals
- Accounting services, including payroll, management accounting and statutory submissions
- Opening and operation of bank cash and investment accounts with leading financial institutions
- Tax planning services are available through our associated law firm Hassans and its network.
The idea of a trust is firmly embedded in Common Law jurisdictions dating back centuries. Trusts are frequently created to define how money and property should be passed to children and other beneficiaries.
How the trust should be governed is described in a trust deed. The owner (settlor) places assets into trust and transfers title to a trustee.
The trustee has legal obligations to the settlor (up to the point of creation of the trust) and also to those who will benefit from the assets (the beneficiaries). Trustees are required to act in the best interests of the beneficiaries.
Giving shape to your family’s charitable and philanthropic goals
- Create a framework for your donations
- Plan the timing of your financial commitments
- Retain a say by way of a protectorship committee
- Teach the younger generation about your family values through actions
Keeping a higher level of control with use of a Private Trust Company
- A “PTC” allows you to retain control over the trust assets. If your circumstances are right, these allow you to own or influence your own trustee
- PTCs can also be useful in the context of a family office, or other similar arrangement to manage a discrete structure
- Careful planning is needed as tax benefits often associated with settling assets into trust may not be available
We can provide the services of a Registered Administrator to allow the PTC to meet its statutory duties
We can also provide administrative assistance to the board of the PTC with its duties as trustee
Protecting wealth through Asset Protection Trusts
- Popularly known as “Asset Protection Trusts”, or “APTs”, these are specific arrangements made to protect settlements into a Gibraltar trust
- Most typically used when family wealth may be at risk from, for example: future litigants if the settlor carries out a high litigation risk profession
- A sworn Declaration and an Affidavit of Solvency by the settlor, together with independent legal advice, allows the procedure to be triggered
- A disposition registered under the legislative framework is protected against claims by future creditors
- We have clearance from the regulator to act as trustees of APTs
Taking advantage of tax-neutral status as a Category 2 HNWI in relation to trusts
A HNWI with Category 2 status in Gibraltar is treated as non-resident for the purposes of trust taxation
- If you are a HNWI coming to live in Gibraltar and will have Category 2 tax status, you can also think about setting up a trust
- Category 2 individuals (and all family members who share the status, such as spouse and children) do not affect the way a Gibraltar trust is taxed (unlike an “ordinary” resident would)
- A trust settled by a Category 2 individual would only be subject to taxation in Gibraltar should there be any Gibraltar source income