Over the past 50 years, the notorious association with the “Bermuda Triangle” has been leveled by the extraordinary financial success of Bermuda, which has gained a reputation as one of the world’s top offshore jurisdictions. This happened, not least, because Bermuda created extremely favorable conditions for the establishment of various types of trusts and offshore companies.
Lawyers of IQ Decision UK are well versed in all the vicissitudes associated with the opening of offshore companies in Bermuda and will help you to setup an offshore trust in Bermuda as soon as possible.
At its core, a trust is not a legal entity, but a certain type of legal relationship that arises between the founder of the trust, property manager and beneficiaries. To establish a private trust company (PTC) in Bermuda is very beneficial for assets owners, since the sole purpose of such a company is to act as a trustee for a specific trust or related group of trusts.
Since 2001, the Bermuda private trust companies have been exempted from licensing requirements, and it is very convenient. However, it is worth noting that this is only on condition that it offers the services of a trustee only to those trusts that are indicated in its constituent agreement.
Normally, the jurisdiction of the trust is selected taking into account various factors, and the geographical location of the business or other assets transferred to the trust are among them. However, it is worth considering that now, in all jurisdictions, including Bermuda, the requirements for founders of trusts are being tightened.
Lawyers from IQ Decision UK will help you establish a trust in Bermuda in the optimal time and taking into account all the legal nuances that regulate the comprehensive protection of your assets.
Benefits that Bermuda can offer:
You will get a large number of benefits if you decide to establish a trust in Bermuda. Here’re just some of them:
- Speed of registration: you can establish a trust in Bermuda in just one day.
- Strict confidentiality: the trust is not registered with local authorities, therefore do not expect any public records.
- Foreign citizenship: the founder, trustee, and beneficiaries may be foreigners.
- Tax Free: Bermuda does not tax its trusts. However, US taxpayers must report their income to the tax authorities in America.
- Flexibility. Several different types of trusts can be formed, including targeted, discretionary and fixed.
- Asset protection: trust assets belong to the trustee, which does not allow future creditors of the founder and beneficiaries to have any claims against them.
- Estate and inheritance planning: Bermuda trusts are perpetual, which provides temporary benefits for estate and inheritance planning.
- Perpetual: Prior to the adoption of the Trusts Perpetuity Act 2009, the maximum life expectancy of a trust was 100 years. Now, trusts can be perpetual.
Effective asset protection
Protection of assets with the help of trusts is increasingly popular among entrepreneurs from many countries the world, especially the ones with underdeveloped democratic institutions.
Someone is trying to protect their property from unscrupulous officials. Someone has to establish a trust in Bermuda, because there was a need to save assets, fearing the arbitrariness of the authorities in relation to business. And everyone is interested in the question: how to maintain their wealth, so that you can then pass it by inheritance?
Creating an offshore trust in Bermuda is an almost perfect tool for this purpose. Neither law enforcement officers nor creditors will find the founder of such a trust. But even if this happens, it is almost impossible to take away the property in the trust.
From owner to beneficiary
The peculiarity of trusts is that the founder, who transferred his assets to the trust management, ceases to be their owner. He and his relatives can become beneficiaries, that is, persons who receive income from the assets belonging to him. It is due to the transfer of ownership from the founder to the trust manager that it is possible to protect assets from various claims in Bermuda.
However, you will have to pay for your asset protection. When transferring property to a trust, its owner loses not only the ownership right, but also the ability to manage it. The trust manager will not formally allow the beneficiary to intervene in the company operation.
A trust fund is formed of assets transferred from the founder to the trustee. What is meant by assets? It can be tangible or intangible assets, real estate, personal movable property, securities, cash, any personal items and other.
The trust agreement has to clearly describe the assets that should become part of the trust fund, and to take into account all the wishes of the beneficiaries.
To draw up a trust agreement requires much skill and savvy from legal professionals. Lawyers from IQ Decision Group will provide you with full legal support if you need to open a trust in Bermuda or create an investment fund, and guarantee full compliance with all legal norms of Bermuda law, which provides for a preferential tax treatment for foreign offshore companies in Bermuda Islands.