REGISTRATION OF THE TRUST – REGULATION OF TRUSTS
Trust is basically a legal relationship created by one or more Settlors and the Trustee, under which the parties manage funds, property, shares, etc. a specific beneficiary with a view to achieving profit or for other specific purposes.
The Governor and the Founder administer trusts and capital solely for the benefit of the beneficiaries. Their powers and the nature of the actions, as well as the purposes of the trust, are defined in the constituent document – the trust agreement.
Trusts not only serve as a reliable asset protection tool, but also reveal broad opportunities for tax planning.
Technically, the Trust Agreement is concluded by two parties:
Founder: this party transfers certain assets to the other party.
Trustee: is the party to whom the assets are transferred and which is required to manage them with the utmost care and diligence, always in accordance with the instructions of the founder.
WHO CAN BE THE TRUSTEE (TRUST MANAGER)?
Trust trust managers may be an individual, corporation or association.
The Trustee of a trust can act alone, be a co-manager or a successor to a trustee.
When appointing a Trustee, it is important to consider the complexity of the trust, and whether the person chosen has time, knowledge, experience, objectivity and the desire to assume the important responsibilities that accompany this role.
Many prefer to appoint a corporate Trustee who can serve as an adjustable, impartial third party with professional experience and extensive resources to manage even in the most difficult situations.
DUTIES OF THE TRUST MANAGER
The role of the Trustee is to manage the assets of the trust in accordance with the wishes specified in the Trust Agreement.
Trustees have a fiduciary duty, legal authority and responsibility for managing your trusted assets, and they handle current financial matters on your behalf.
They are required to perform a wide range of duties: take complex decisions related to the management of the trust, resolve certain legal issues, keep records, initiate transactions, manage targeted assets, pay taxes on behalf of the trust and much more.
There are three main elements in the role of the Trustee:
The trustee plays a central role in fulfilling your wishes regarding the use of assets in the trust. Experienced and impartial trust management of the trust and maintenance of relevant records are vital components for the implementation of your plans.
The trustee is ultimately responsible for preserving and investing the assets of the trust, ensuring that they are properly managed in accordance with the purposes of the trust.
The Trustee is legally responsible for reassessing the purposes of the trust and current market conditions to ensure that the investments meet these objectives.
The trustee also oversees the preparation of relevant tax returns and all trust reporting in accordance with complex state and federal laws.
Many Trustees often delegate daily investment management to a trusted financial adviser.
The trustee must accept the assets of the trust, keep accurate records, report to the beneficiaries, perform and settle all transactions, protect and protect the property, and protect the trust before the claimants.
LEGAL REGULATION OF TRUSTS
Civil codes of some countries contain provisions on trusts or similar formations.
The Convention on the Law Applicable to Trusts and their Recognition was presented in The Hague on July 1, 1985. This agreement entered into force on January 1, 1992. Under this agreement, certain jurisdictions of Roman law included provisions on trusts in their civil codes (France since 2007, Holland, Luxembourg, Italy, Monaco, Liechtenstein and most recently Switzerland).
Also, the Convention determines that any citizen whose country has not clearly accepted this form of Anglo-Saxon law, under no circumstances is not limited to legal participation in the trust fund abroad.
THE MOST PRIVATE JURISDICTIONS IN WHICH ETERNITY LAW INTERNATIONAL SPECIALISTS REGISTER TRUST:
British Virgin Islands
To select a suitable jurisdiction, please contact our specialist for individual advice.
Eternity Law International specialists will provide you with expert advice on the acquisition of an offshore trust, the European Trust, the opening of a bank account worldwide. Contact us.