In many people’s minds trusts are perceived as a tool used in complex schemes designed to minimize tax liabilities or as a means of providing for the structured succession of property. Whilst trusts may be used to resolve such problems, the development of the scope and application of trusts has changed dramatically from their original use. They have become increasingly flexible in structure and diverse in application.

It is now relatively common for financial advisors to recommend trusts for many reasons, for example:

• Protection of assets.
• Holding property and other investment assets.
• Employee benefit schemes.
• Facilitation of “off-balance sheet” transactions.

Trusts also remain one of the most important structures in financial planning for private families as a means of:

• Providing for a child’s education and maintenance.
• Holding capital until a beneficiary reaches an age specified by the settler.
• Ensuring continuity of ownership of a family business.
• Succession to family assets.
• Minimization of estate taxes, such as inheritance tax and estate duty.Naturally, with the evolution of the use of trusts has come the enactment of complex legislation to stem the loss of tax revenues. Whilst the abusive and ill-conceived use of certain vehicles, such as some trusts and foundations, may fall within the parameters of anti-avoidance tax legislation, carefully structured arrangements can achieve the settlor’s objectives.

We here at AFP are able to provide the following trust structures and services:

• Discretionary trusts
• British Virgin Island VISTA trusts
• Life interest trusts
• Real estate trusts
• Purpose trusts
• Private trust companies
• Employee Benefit trusts
• Bare trusts

Trusts and foundations can play an important role for individuals, families and, indeed, corporations. However, unless care is taken to ensure that a person is completely aware of the implications of settling assets in a trust, uncertainty and frustration may arise in the future. We at AFP seek to ensure that our clients fully understand the concepts, benefits and uses of trusts and that the proposed structure meets their requirements.

For further discussion of your requirements in these areas:
please send an enquiry, or contact: info@afpglobal.com