Offshore trust service

    Offshore means that an investor's company is registered in an offshore jurisdiction, but investors do not have to go to the local area, and their operations can be carried out anywhere in the world.
    The trust is an important tool for financial management. Refers to the settlor property (including real property, intangible assets and tangible assets) to the trustee, so that the trustee according to the purpose of the trust, for the benefit of the beneficiary or for a specific purpose, the property management or custody.
    The offshore trust is a trust established in an offshore territory. It is similar in operation to the trust, but because the specific territorial has a relatively loose or special policy on the definition or the law of the trust, the beneficiary's interests can be more protected.


Use of offshore trusts:
Ⅰ.Information secrecy.

Ⅱ.Effectively control the profligate behavior of beneficiaries.

Ⅲ.Wills and real estate planning.

Ⅳ.Philanthropy.

Ⅴ.Provide protection for future retirement.

Ⅵ.Design company architecture.

Ⅶ.Property protection.

Ⅷ.Inheritance and estate tax planning.


1.Family trust
    Private trust companies have strengthened control over clan property. Private trust companies are more common in offshore trusts, and they are the trustee of a limited liability company established by one or several trusts to manage the entire clan assets.In addition to having a professional trust institution as a trustee, Inside the family very trusted private consultant. such as lawyers, accountants, etc., will serve as board members, and even members of the family will participate in the guardian or assigner,thus forming checks and balances on trustees. At the same time, it also strengthened the family's long-term restriction and control ability to enterprise property.Private trust companies can also drafting documents based on the actual situation of the family, with great flexibility and high secrecy, Reduce the likelihood that family wealth and affairs are known to outsiders.


   Offshore family trust assets are diversified and have legislative protection.The family trust established offshore, in addition to loading cash assets into trust,It is also possible to transfer the equity of an overseas company to a trust.Offshore trust law and trustee act also provide a stable legislative guarantee for equity trust.In addition, although trust is not "sustainable", the offshore legal system is generally more flexible and provides for a longer duration.For example, in the newly revised law of the British Virgin Islands, the duration of the trust is extended from 100 years to 360 years.Equity trusts can also achieve the purpose of perpetuity through the two trust relationships between private trust companies and listed trust companies, which plays an important role in the realization of family property inheritance and corporate governance.

    Huge tax incentives. Offshore land itself is a tax haven, and there are special preferential policies for offshore trust.For example, only tax on income derived from home / region, no tax on non resident income distribution, non residents can also enjoy a fixed period of tax exemption.In the case of Longguang Real Estate, since Ji Haipeng was a Chinese citizen, if an offshore company was established by him, it would have to report to the Chinese government and pay taxes on the company's dividends.However, the client of the family trust, Ji Kaiting, is a citizen of Saint Kitts living in Hong Kong. The trustee is a trust institution incorporated in Guernsey.The value of assets held in the trust is maintained and added value, and if it is not extracted, the tax exemption will be granted. When accepting the dividends of trust, her citizenship attributes need not be taxed.

     A perfect system of judicial protection.Some of the offshore areas are still the dependencies of the sovereign states, but they all have independent judicial powers.Offshore Trust can prevent foreign laws from infringing on the rights of the beneficiary of the trust.For example, if the other person is require to enforce or inherit the trust assets set up in the offshore land in accordance with the law of the mother country, the offshore land has the right to refuse to be executed in conformity with the local law.In addition, offshore revocation is established through the establishment of trusts to effectively prevent creditors from repeal the trust.The Cayman Islands stipulates that a creditor may apply for the cancellation of a trust within six years of the establishment of the trust by submitting evidence of improper purpose, unlawful source of trust property or underestimation of the value of the property.The Cayman Islands' restrictions on the period of revocation of trust and the burden of proof required by creditors protect the rights and interests of trust beneficiaries.


2.Risk isolation trust:
*Setting up overseas private trust companies or conducting trust arrangements.
**The core protection or assets that need to be separated from risks should be injected into the trust protection through donation.
***Core assets in trust protection, such as brands, patents, and cash, can be licensed or lent to an operating enterprise that is not under trust protection.
****Protected core assets, enjoy value protection, benefit interest or royalties, can be used for household expenses, child education, or vacation expenses.
*****Even if a business enterprise that is not under trust protection goes bankrupt or personal bankruptcy, it will not affect the value of the core trust protection assets.


Explain:Private trust companies are independent trustees, and trustees can appoint trusted persons as directors of PTC to supervise the management and distribution of trust assets as a whole.

3. IPO pre-trust:
Ⅰ.Setting up overseas private trust companies or conducting trust arrangements.

Ⅱ.Transfer of shares of forthcoming listed enterprises to trust control.

Ⅲ.Executive incentive specific provisions can be defined in the trust agreement, and more flexible under the provision of special safeguards.

Ⅳ.Dividends from overseas listed companies are directly remitted to trust management and tax burden is optimized.

Ⅴ.Family property can evade the influence of civil disputes on Listed Enterprises after reaching unanimous distribution under the trust.


4.Pre-immigrant trust
Pre-immigration trust scheme:

Ⅰ.Setting up overseas private trust companies or conducting trust arrangements.
Ⅱ.Assets that need to be prepared for tax planning or need to balance interests should be included in the trust arrangement through donation.

Ⅲ.Assets in offshore trusts can circumvent income tax, as well as various asset taxes, and simplify procedures for wealth inherit.

Ⅳ.The assets in the trust may be instructed by the protector or confirmed by the director of the private trust company to cover the living expenses of the trust beneficiary.

Ⅴ.The bankruptcy and death of the trustee will not affect the benefit of the trust beneficiary from the trust assets.





5.Collectibles Trust

The function of investment Collectibles:

Ⅰ.With diversified investment, the role of value-added preservation in a long period of time.
Ⅱ. The collectibles artworks is a good way to avoid taxation for companies that need to display products, such as operating hotels, etc.

Ⅲ.The collectibles as a family wealth inheritance is both convenient and commemorative.

Risk of investment in collectibles:
Ⅰ.The price difference between intrinsic value and market price fluctuates greatly due to the timing of trading.

Ⅱ.Difficulties in realisation and huge transaction costs, such as the liquidation of debt pressure, may result in huge losses.

Ⅲ.May require special insurance or custody care.


Collectible trust scheme:

Ⅰ.Deliver the Collectible to the trustee.

Ⅱ.Arrange trust arrangements, arrange storage, storage, insurance, exhibitions and other matters of collectibles.

Ⅲ.Collectible under the trust are segregated from the settlor own assets.

Ⅳ.If thesettlor goes bankrupt or encounters lawsuits, the claims will not affect the collection under the trust.



The role of the Collectible Trust:
Inheriting from generation to generation, isolation of claims, avoid being forced to sell at a low price.
Special management, facilitate the unified coordination of collection storage, insurance, external display, rental and other affairs.


OSCAPITAL Trust application formOSCAPITAL信托申请表格


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