Trust is one of the tax planning tools. Trust is also used in protecting existing assets and transferring them as inheritance. The biggest mistake in understanding the essence of trust is that many consider it as some specific type of company. Although, in fact, a trust is one of the forms of contractual property relations.
Trust is understood as an agreement according to which some property or part of it will be transferred to the managing person, however, the beneficiaries will own this property and receive profit from it. Both immovable and movable property can act as a trust property.
The founder has the right to transfer the property during the lifetime or to appoint a transfer after death (in this case, we are talking about a testamentary trust). The trustees carry out a comprehensive due diligence of all persons who are participants in the trust. The registration of a trust does not require the involvement of third parties. All transactions are guaranteed to remain private, which, in turn, ensures the confidentiality and safety of information about the beneficiaries.
A trust has several advantages that allow you to optimize the taxation process and protect property from the effects of various kinds of negative factors. The advantages of a trust are as follows:
In order to ensure maximum protection of the rights and interests of the beneficiary, the possible presence of one more participant – the committee – is provided. The committee is appointed by the founder and oversees the actions of the trusted owner. It is best to choose as the committee someone with no interest in the property, such as a legal advisor or accountant.
The creation and further maintenance of a trust is a very confusing process, involving many nuances, which may not be familiar to everyone. All aspects of this procedure require the professional approach of lawyers. The team of specialists of Eternity Law International has sufficient experience in working with trusts and is ready for tasks of any complexity. Advice is also provided.