Offshore Trusts For High Net Worth Individuals

Effectively passing on your assets to the next generation is a process that requires preparation. Successful high net worth estate planning involves multiple elements, from tax planning to the use of trusts and Wills, each needing to be carefully structured and integrated.

“Offshore trusts are often considered essential in efficient tax and estate planning by high net worth individuals, as it offers them opportunities for securing their assets whilst retaining control. They often carry an air of mystery shrouded in confusion, but in reality, an offshore trust is simply one which is managed by non-UK resident trustees, ” says James Turner, Director at Company Formation Specialists, Turner Little.

“Offshore trusts are most commonly used for asset protection and succession planning purposes, as it keeps assets protected from divorces, debtors and in some cases even the deaths of family members. Once you have decided a trust is appropriate, you’ll need to look at the country in which you want to settle the trust. The choice of jurisdiction can have an effect on the efficient administration of the trust,” he adds.

“There are a number of things to consider, for example, what is the jurisdictions creditor protection regulations? Does the jurisdiction operate heirship rules, under which you are required to make testamentary provision for dependents? Do they operate transparent ownership registers for property which could impact privacy? More importantly, is the jurisdiction stable both economically and politically? There is a reason that the Channel Islands, Cayman Islands and Switzerland are frequently considered, but are they right for you?” says James.

At Turner Little, we specialise in creating bespoke solutions for both individuals and businesses of all sizes. The knowledge and expertise of our specialists, ensures we are able to assist with any enquiries, no matter how complex. To find out more about how we can help you plan, get in touch with us today.