The Trust is an achievement of the Anglo-Saxon legal system, which dates back to the time of the Crusades. In the process of a long historical development of confidential property, the institution of the law of justice has been formed into an independent institution of law, the main instrument of which is the trust.
In the modern sense, the trust is a form of legal relations based on the Trust Deed, according to which the founder transfers assets to trustee Trustee and determines the circle of beneficiaries - persons who can benefit from the trust.
Only beneficiaries benefit from the use of trust assets, and its founder loses the rights to property, interrupting legal communication with it through alienation (other than those expressly provided for in the Trust agreement). Nevertheless, the founder can send Letters of Wishes to the Trustee, which contains instructions for managing property, or otherwise expresses his will with regard to asset management.
At the same time, the beneficiaries of the established trust are given the right to control the compliance of the trustee with the terms of the trust agreement, up to applying to the court for the protection of their interests. Also, in order to control the activities of the trustee, a Protector can be introduced into the structure of the trust.
From a legal point of view, the trust is not a legal entity, but is defined as a special form of contractual relations that do not require state registration.
Objectives of the establishment of the Trust
- Protection of property and assets from raiders
When using the trust, the founder legally distances himself from his property, accordingly he loses the rights that may be subject to encroachment by the Raiders.
- Protection of property and assets from claims of creditors
The property that is in the trust can not be seized.
- Protection of property from family members
When the marriage is dissolved, the property is not subject to division, because it belongs to the trust.
- Protection of property from the state
Protection of property from political and economic instability is ensured by its placement (legally) in stable jurisdictions with special legislation adopted to provide maximum protection to the assets of the fund.
- Optimization of taxation
It is carried out by placing the trust in a low-tax jurisdiction.
- Creating an alternative method of inheritance
By the establishment of the trust, the founder receives the opportunity to avoid the requirement of legislation on mandatory inheritance and conflicts of inheritance.
- Ensuring the confidentiality of the actual ownership of property
At the foundation of the trust, the name and information about the founder is not entered in the registers and appears only in the trust agreement. The name of the owner is known only to Trustee.
The Trust is an effective way of owning property for both personal and business purposes. This tool allows you to maintain anonymity, providing a wide range of applications.