Isle of Man Trust
Wealth and Business Structures
Isle of Man Trust
Benefits to register a Trust in Isle of Man
The benefits and practical uses of a trust are varied, depending of course on the particular scenario but they are often used advantageously in the following circumstances:
To enable the Settlor to plan for future generations of his or her family.
With the correct planning it may be possible for an individual, family or business to take advantage of these benefits through the utilisation of an Isle of Man trust or in conjunction with a corporate structure.
The Isle of Man has earned a reputation as a premier offshore jurisdiction for the establishment and administration of trusts. Each settlor’s circumstances and requirements will be specific to them with the result that no two trusts are the same. Anyone considering setting up a trust should obtain expert advice as to what type of trust (if any) best meets their needs.
Privacy and confidentiality
No information released on public records
No income taxes for non-resident beneficiaries
No capital gains, inheritance, gift or Estate taxes
Duties of a Trustee
Trustees stand in a fiduciary relationship vis-à-vis the beneficiaries of the trust. In carrying out their functions in relation to the trust, the trustees are bound by overriding duties to act honestly, in good faith and in the best interests of the beneficiaries. They must never allow personal interests to conflict with their fiduciary duties.
Generally, trustees are subject to the following duties:
To act fairly and impartially as between the differing interests of the beneficiaries.
The trustees may be held to account personally to the beneficiaries to make good any losses to the trust arising from a breach of their duties.
Duration of a Trust
Private Trust Companies
A private trust company (PTC), a company which exists for the sole purpose of acting as trustee of a specific trust or trusts, can be an attractive alternative to using an institutional trustee. In essence, the settlor incorporates his own company to act as the trustee of the trust he is settling. The PTC regime in the Isle of Man is straightforward and practical, and, with no associated government licensing or registration fees, is one of the most cost-effective among the offshore finance centres.
Provided they are not held out to the public as undertaking trust business, and that the administration of the underlying trust or trusts is carried out by a regulated corporate services provider in the Isle of Man, PTCs are exempt from the normal licensing requirements of the Financial Services Act 2008.
Typically, the shares of the PTC would be held in an Isle of Man purpose trust, the purpose being to incorporate, promote and maintain the PTC. The terms of the trust may provide for a mechanism by which board appointments are effected in accordance with the settlor’s wishes (or any other formula). A Manx foundation might also be used for these purposes.
Resistance to Foreign Laws
In common with many offshore finance centres, the Isle of Man has enacted “firewall” laws which seek to ensure that, as far as possible, a trust is shielded against attack by any party (including a court in an overseas jurisdiction) on the grounds that the trust offends or denies rights arising under foreign law – typically, rights of inheritance (such as forced heirship rights prescribed in certain civil law jurisdictions or under Sharia law) or rights arising through marriage or former marriage. It should be borne in mind that no firewall legislation provides absolute protection against such claims, particularly where the underlying trust assets are situated in the foreign territory where the claimant is bringing the claim.
The protection, found in the Trusts Act 1995, has three aspects:
All questions concerning a trust (including the gift of property into the trust, the powers and obligations of the trustees, and the administration of the trust) are to be determined according to Manx law without reference to the laws of any other jurisdiction.
The effect of these provisions is that the party seeking to attack the trust will have to do so in the Manx court which will decide the matter applying only Manx law. A judgment of a foreign court which is inconsistent with these principles will not be recognised or enforced in the Isle of Man.
Which services we do and do not do
What we do
Under our Services portfolio, we are EXCLUSIVELY engaged in assisting worldwide clients, either individuals or corporate entities, to set up their business overseas. In order to allow every client to properly register their business at an international jurisdiction, ATRIUM & ASSOCIATES provides all related services including company formation, assistance to locate local registered offices for their new business company, helping to open business bank account, and introducing client to local chartered accountants.
What we don’t do
ATRIUM & ASSOCIATES does not provide investment or financial advice, and any sort of financial business activity.
How can we help you?
Should you have any question, our Business Development Managers team will be ready to guide and assist you!