Offshore Trust Companies
As it has already been stated, Licensed Trust Companies are entities which hold a license in the jurisdiction in question, that enables them to administer and establish trusts for their international clients, possibly for fiduciary services as well.
A number of leading bank companies establish trust companies in classical offshore centers as well as out of those centers, in order to be able to provide their clients with complete services from a number of classical bank services to trust and often fully specific and individual services connected with a confidential administration of onshore and offshore assets (such as share subscribers, nominee directors and shareholders, fiduciaries, etc.).
Difference between an offshore trust company and an offshore trust
A trust company is a licensed legal entity (in a similar manner as a bank), which provides its clients with services connected with formation of trusts and their administration, whereas a trust is a deed (contract) on the basis of which authorized persons (trustees) administer the assets of the founder (called "settlor") in favour of trust beneficiaries. In general terms it is possible to simply state that a trust is a product of a trust company (unless it is established by a lawyer skilled in these issues).
Trust companies can offer the following services to their clients:
- 1.establishing a trust and its administration according to the instructions of the settlor
- providing beneficiaries and settlors with legal and administration services
- providing beneficiaries and settlors with trustee services
- providing fiduciary services
- providing investment advisory services
- providing financial services and consulting
- accepting deposits and administering assets for third persons
- providing trusts with banking services, including trust management and all accompanying banking and financial services.
A trust company is in a certain manner also a bank, it only provides a different type of financial services due to its focus. A bank, for example, manages accounts and deposits for its clients and provides them with banking services and products. A trust company manages for its clients for example free wills, testaments and the assets contained in the wills in favour of third legal entities or natural persons, who had a trust formed at the trust company or who have become its beneficiaries on the basis of the trust settlor's requirements. Only on the basis of these wills and instructions of the trust settlor does a trust company manage these assets, exclusively according to the wishes of the trust settlors or the persons who were nominated by the trust settlor (for example through a power of attorney). The assets are understood as the trusted property, which can be formed e.g. by ownership interests in companies, shares, bonds, bank accounts, real property, copyrights, cash, precious metals, ships, aircraft, etc. Trust companies also manage the trusted assets and wills to satisfaction of the settlors or beneficiaries of the trust in question, in accordance with the deed referred to as the Letter of Wishes. Their only income, which is, however, not negligible, is often a lump sum fee or a percentage remuneration of the value of the trusted assets. As a standard, administrators charge a fee oscillating between 0.5 and 3 per cent of the trusted assets a year.
Trust companies locations:
- Anguilla Trusts Companies. The new Trusts Act is the culmination of an exhaustive study of the trusts legislation of many other jurisdictions. The decision was taken to repeal the existing trusts legislation and replace it with a completely new Ordinance, rather than attempt to amend it.
- BVI Trusts Companies. BVI Trusts are formed under the Trust Ordinance 1961 (based on the English Trustee Act 1925), as updated and amended by the Trustee Amendment Act 1993.Since the 1993 Act, there is no requirement for registration of trusts in the BVI, and there is no public disclosure of information regarding trusts.
- Swiss Trust Companies. A Swiss trust company is the main form of a trust that is found in offshore jurisdictions. They are one of the best known and respected vehicles in the business world. Swiss trust companies can easily function as a holding entity and a flagship structure for any company and investment.
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