The Benefits Of Establishing An Offshore Trust

The Benefits Of Establishing An Offshore Trust

While the tax advantages of using offshore trusts are limited, they can still play a key role in estate and financial planning to help you preserve and enhance your wealth. You may benefit from using an offshore trust: If you have assets in various locations throughout the world an offshore trust can help you distribute assets with the tax effects, either during your lifetime or through your will.

How offshore trusts work?

An offshore trust is established under the laws of another country and is administered by an offshore trustee, typically a financial institution. An offshore trust has a settlor,  a trustee, and beneficiaries.  If you are the settlor of the trust, you will fund the trust either by giving or lending property to it.

A trust is separate  from  you   and your  beneficiaries,  and  is  governed  by the laws of the country in which the trustee is resident. The trustee becomes the legal owner of the trust  property  and  is  required  to manage the property as directed in the trust deed.

The trustee is also responsible for distributing trust assets to  the beneficiaries you have named  in  the  trust  deed.  The trustee  has full decision-making  power over trust assets based on the provisions of the  trust deed, and it is  essential  that you have complete confidence in your choice of trustee. To  maximize  their effectiveness, offshore trusts are generally established in jurisdictions with little or no income, capital gains, or  estate  taxes,  such  as Belize, Barbados, the Bahamas, Cayman Islands, and Turk and Caicos.

Those countries have local  and  international financial institutions that are experienced  in acting as  trustees,  and have  the  legal and regulatory  systems designed to manage offshore trusts. And By the way You can use  the offshore trust for example to facilitate the smooth transfer of wealth from you to your dependents while you are alive or after your death.

Fulton Abraham Sanchez, the founder of FAS CPA & Consultants of Miami, FL, is a Certified Public Accountant specializing in Offshore and International business. You can reach him at fa@fascpaconsultants.com.

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Fulton Abraham Sanchez, CPA

Fulton Abraham Sánchez, CPA is a Certified Public Accountant, specialized In Tax Planning, International Business, Wealth Management and Offshore Banking. You can email him to fa@fascpaconsultants.com or follow us on Facebook : FAS CPA & Consultants.

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