Offshore trust

一．Offshore Trust (Overseas Trust)

   Offshore trusts are also known as overseas trusts or foreign trusts，It means that daily management is carried out abroad，All or most trustees be not live in the ones own country or be not the ones own country habitually live in  the country's resident as a principal established the trust ）。In operation, it is similar to the trust,Because specific territories have relatively loose or special policies on the definition or law of trust, or the interests of beneficiaries can be protected more，Therefore, more and more entrepreneurs choose offshore trust in order to achieve the financial purpose of enterprises and individuals, so as to ensure that they can find the best solution from the law.

   Offshore trusts are usually created when assets are transferred to the custodian (becoming an Offshore trust fund), At this time, the custodian becomes the legal owner of the asset, and at the same time manages the assets according to the terms agreed by the trust and divides them into beneficiaries of the offshore trust.(Beneficiaries may include individuals or companies who transfer ownership of assets to a person under the name of a custodian .).After the property is delivered to the trust, the settlor still retains the right to decide the use of the trust property, terminates the trust contract at any time, and retrieves the trust property, so as to avoid the trouble of  extravagance after giving the property to their children.Therefore,Trust can be used to ensure that the assets accumulated by predecessors will not be wasted easily by future generations.

   The offshore trust is an innovation of a trust that is similar in operation to a trust and refers to a trust established in a jurisdiction other than the place where the Grantor of property.Most offshore trusts are set up in tax havens due to preferential  tax and legal setting in tax havens.Offshore trust  appeared in the world's several famous  tax paradise in the late 1970s.Any form of assets can be injected into offshore trust, including existing deposits, stocks, bonds and real estate.

二．The most common uses of offshore trusts：

Ⅰ.Protecting wealth from political, economic turmoil or uncertainty in family disputes.

Ⅱ.Providing an effective tax plan for the heirs when transferring wealth.

Ⅲ.Establish a heritage plan to realize maximize the benefits of heritage  to estate wealth for family members or other beneficiaries.

Ⅳ.Transfer of wealth to the heir according to the individual's will without being restricted by the laws of the place where he resides.

Ⅴ. Integrate asset ownership across the globe, making them concentrated in one region.

Ⅵ.Reduce or waive the estate tax arising from the death of the Founder .

Ⅶ.Providing asset protection in the event of legal disputes.