Trust & Foundation Service
A trust is a relationship where a property is held by one party for the benefit of another party.
Foundation is a type of entity that is a cross-breed between a trust and a corporation, however, it is neither, rather as a separate legal entity, has the capacity to execute rights and acquire obligations.
Trust & Foundation
What exactly is Trust?
A trust is a partnership in which one party holds property for the benefit of another. A trust is formed when the owner, sometimes known as a “settlor”, “trustor”, or “grantor”, transfers property to a trustee, who then retains that property for the benefit of the trust’s beneficiaries.
What exactly is Foundation?
A foundation is a hybrid of a trust and a corporation; nevertheless, it is neither and, as an independent legal organisation, has the ability to execute rights and acquire obligations. It is established by a declaration of the Founder and normally serves to preserve assets for the benefit of the Founder or Beneficiaries.
Benefits of becoming a foundation trust
- The trust can avoid inheritance, gift, wealth, and transfer taxes, and the beneficiaries can receive income and assets tax-free. However, US taxpayers and those in nations that tax global income must submit all income to their respective tax authorities.
- Creditors of the settlor and beneficiaries cannot seize trust assets.
- Since trusts are not registered with the government, there are no public records about them.
Our Services
Book-keeping, Preparation and filing of tax return with relevant authorities (where required).
Provision of trusteeship services, secretarial service, corporate or individual members of the Council.
Provision of registered office
General administration.
Structuring advice on how to use in the most efficient manner.
Drafting, structuring and establishment
Process of Setting Up
Step 1
Choose Trust or Foundation name
Step 2
Provision of list of relevant Parties
Step 3
Provision of Due Diligence Requirements
Step 4
Establishment
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FAQs
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What about Trust’s taxes?
The trust’s revenue is recorded directly on the current beneficiaries’ tax returns. Because it is a grantor trust, which is a trust in which the creator (or grantor) retains some stake in the trust’s income and cash. For tax reasons, it is not treated as a separate taxable entity from the grantor. As a result, it is “Income Tax Neutral” for the giver. For tax reasons, this is the same as owning the funds in your name. However, in terms of asset protection, it is the difference between retaining and not keeping your own money. It can also forward real estate tax and mortgage interest deductions to your personal tax return.
Who holds a General Trust License?
A General Trust Licence holder is an entity that has a valid general trust licence as defined by the Banks and Trust Companies Act of 1990, which allows the holder to conduct trust operations without restrictions. This Act defines trust business as “(a) acting as a professional trustee, protector, or administrator of a trust or settlement, (b) managing or administering any trust or settlement, and (c) company management as defined by the Company Management Act, 1990.”
The International Business Companies Act (“IBCA”) defines a registered agent as “the person who is at any particular time performing the functions of registered agent of a company incorporated under this Act pursuant to subsection (1) of section 39” (of the IBCA).
A principle office is the office of the Company Manager or Trust Licence holder with a physical presence in the (British) Virgin Islands.
A General Trust Licence holder is an entity that has a valid general trust licence as defined by the Banks and Trust Companies Act of 1990, which allows the holder to conduct trust operations without restrictions. This Act defines trust business as “(a) acting as a professional trustee, protector, or administrator of a trust or settlement, (b) managing or administering any trust or settlement, and (c) company management as defined by the Company Management Act, 1990.”
Who is a Restricted Trust Licence holder?
A Restricted Trust Licence holder is an entity that has a valid restricted trust licence as defined by the Banks and Trust Companies Act of 1990, which allows the holder to carry on trust business with limits, specifically delivering trustee services to a trust.
An Authorised Agent is a person designated by a trust company to act as an intermediary between the licence holder and the Commission.
A Trust Company is a company that carries on trust business as defined in (2) above.