Offshore Trust Formation

Offshore trust formation is based on the trust law of common law systems. Forming an offshore trust means entering into an agreement or arrangement of trust by an individual or corporate entity, known as a Trustee and an individual or corporate entity, the Settlor or Grantor. In the formation of offshore trusts, the Trustee is the “real owner” of the offshore trust and entrusts a certain amount of wealth, such as real estate, valuable jewelry, stocks or cash, to the settlor, who by the Trust Deed, is given the authority to transfer those assets to the offshore trust’s beneficiary. Offshore trust formation may also include an offshore trust Protector, which is a person or company appointed to ensure that the assets of the offshore trust are properly administered and handled as stated by the trustee of the offshore trust. This is the basic structure in offshore trust formation and represents the structure required in most jurisdictions where offshore trust formation is carried out.

During offshore trust formation, important decisions such as the offshore trust’s duration, persons who will assume the different roles, the type and quantity of assets to be entrusted and the revocability or irrevocability of the offshore trust will be taken. The offshore trust formation procedures also determine whether or not the trustee wishes to form an offshore trust that is discretionary or not, or provides its members with special rights, obligations and powers.

The formation of an offshore trust that is discretionary provides a trustee with the flexibility of appointing and removing beneficiaries. Persons or corporations forming discretionary offshore trusts should pay careful mind to the offshore entity that may be chosen to act as the trustee of an offshore trust during trust formation. The settlor of an offshore trust must also be carefully chosen, since “trust” is the basis on which trusts formation occurs. Offshore trust formation, thus requires conducting thorough research on various offshore trust agents, the efficiency and quality of their services. Placing assets in the care of an offshore trust settlor regardless of whether they are worth only a few thousand or several millions of dollars is vital in offshore trust formation.

Offshore trust formation in a jurisdiction that is renowned for its strict confidentiality laws is important. This enables the person or corporation forming an offshore trust to safely benefit from asset protection and well planned tax deferral. Countries and offshore agents that have established a name for themselves in the formation of offshore trusts should be selected when creating a trust. Belize trust, for example, are known for being well managed as a result of proper offshore trust laws that regulate offshore trust formation and services. Likewise, Dominica trusts are ideal for persons and corporation that are seeking a jurisdiction that is well shelter, has strong privacy laws and well regulated and supervised offshore trust service provider. Offshore trust formation services in Dominica are trustworthy, efficient and offered by teams of experienced and tried lawyers who operate their own offshore trust formation companies. Dominica company and Dominica offshore trust registration is accomplished within a brief time frame of only a few days.

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