The role of the Trusts has evolved over the years and they are now considered as very effective vehicles for a range of purposes including inheritance planning, protection of assets, wealth management and other.
A Trust is a private arrangement between the Settlor, who is the person or entity creating the Trust by transferring assets to the Trustees, who will be holding and managing these assets for the benefit of the Beneficiaries, separately from their own property.
Effectively, the Trustee is the legal owner whilst the Beneficiaries are the beneficial owners. The Settlor may also appoint a Protector to act as a guardian so as to ensure that the Trustees are acting in accordance with his/her wishes and for the benefit of the Beneficiaries.
Usually the Trustees will have discretionary power in managing a Trust. Therefore, how Trust assets will be managed and invested, whether there will be any distributions and to which beneficiaries, etc. are issues at the absolute discretion of the Trustee. However, such matters can also be provided in the Trust Deed, which is the governing document of a Trust and through one or more Letter of Wishes to be provided by the Settlor for consideration by the Trustee. The Trust Deed is a private document, accessible only by those concerned.
Families not residing in Cyprus can qualify for the set-up of a Cyprus International Trust, which presents significant tax advantages. A Cyprus International Trust has the following characteristics:
You can find more about Cyprus International Trusts in our related Practical Note, by clicking here.
B. How we can help
As a company licensed to provide trustee services, Seamark can assist in the following areas, among others: