In a conventional legal system, a trust is basically a relationship set up between three parties, where one party holds the property for another and transfers it to the third party at a specific time and place. The trust is created by a person known as a settlor. The settlor transfers part, or all, of his property to a third party, known as a trustee. The property is held by the trustee until the predetermined date when the property is transferred to the beneficiary. Though they have existed since Roman times, trusts have now become one of the most popular forms of transferring property by wealthy persons to their children or other beneficiaries.
Trusts allow wealthy individuals to plan their estate accordingly and structure it according to their wishes. In Gibraltar, trusts are commonly set up by wealthy individuals as well as companies. Gibraltar is a British Overseas Territory with a population of just around 30,000 people. Despite its small size, it is a major hub of commerce in the Iberian Peninsula. One of the most attractive reasons because of which companies look to set up their headquarters in Gibraltar is the tax exemptions. Gibraltar enjoys low corporation taxes and income taxes, making it a very attractive place for companies.
With the passage of time, trust laws have evolved to benefit both wealthy individuals and companies. For instance, trust laws now provide greater protection of assets as well as more freedom in succession planning. The laws make the transfer of assets much easier, and also mitigate numerous taxes. For instance, if a trust was created by a non-resident of Gibraltar for the benefit of a beneficiary who is also non-resident, all taxes are exempt in Gibraltar. Here are a few things that you should consider before hiring a trust company Gibraltar:
Trust Services
As is obvious, trusts can be used for more than just a vehicle for transferring assets between wealthy individuals. You need the help of professional solicitors who have experience in creating different financial vehicles. When you first look to hire a professional law firm, ask them about the services that they offer pertaining to trusts and estate planning. Make sure you carefully go through the list of different services that the trust firm offers.
Experience in Setting up Trusts
There are many trust companies in Gibraltar. You need the services of a professional company that has extensive experience in setting up trusts. Experience is vital in the financial industry. Not only will it help you save money on taxes, but will also allow you to create financial vehicles that are more cost-effective. Trusts in Gibraltar need not be registered; hence privacy and confidentiality are important too.
Before you sign up with any trust company, it is important that you sign a privacy and confidentiality agreement. This binds all parties to a legal agreement to keep the trust private between the three parties. There is a lot of flexibility in setting up trusts, so you will have to work closely with your trust company.