International Trust Solutions

CAPITAL G Trust Limited is a licensed trust company, which administers assets transferred from individual or corporate ownership into its neutral stewardship, thus offering a range of international advantages. An offshore trust can be a particularly effective tool in the strategic management of an investment portfolio. Properly established, offshore trusts can serve to protect wealth and enhance its ability to benefit others. Offshore trusts are an important option for those who are interested in succession planning, contemplating a change of domicile, or looking to financially benefit family members and others outside their country of domicile.

What is an international Asset Protection Trust (APT)?

Any number of asset preservation strategies can be established to operate with varying degrees of effectiveness. In some countries, asset preservation or creditor protection often includes transferring assets to a spouse or investing in segregated funds. While these strategies may provide some protection from creditors, the assets may still be subject to the jurisdiction of the Courts and future creditors may be able to have such transactions reversed. For individuals who require greater protection and a greater degree of planning certainty, an international Asset Protection Trust (APT) is an excellent solution. An APT is established in a tax-neutral jurisdictionsuch as Bermuda that has specific asset protection legislation.

Simply stated, asset protection legislation is designed to protect assets from the claims of certain creditors, including family members, who are seeking to set aside the trust. Asset protection legislation, when used in concert with a properly advised trust structure, where the settlor is not intentionally trying to defraud his or her creditors, ought to be successful in preserving the settlor's wealth.

What are the benefits of an APT?

Wealth preservation is a central component of any financial plan. An APT can be one of the most effective methods of achieving the comprehensive preservation of assets.

An APT is not designed to save taxes. At best, it is a tax-neutral strategy that will also provide excellent estate planning in addition to the desired asset protection. Coupled with the appropriate investment policy, an APT can become a legacy for generations to come.

Among some of their uses, APTs are effective for:

• medical and other professionals, to provide additional insurance
  
  
• business owners and entrepreneurs for creditor protection
  
  
• directors of private and public corporations and charities, to protect against directors' liability, including environmental claims
  
  
• individuals who may be targets of spurious litigation, such as high profile athletes and entertainers
  
  
• entrepreneurs with assets from the sale of a business who may want to start a new business
  
  
• spouses, as an alternative to pre-nuptial or spousal agreements.

Among the effects APTs can efficiently achieve are:

• succession planning that provides an alternative to wills and ensures that property goes to those beneficiaries best able to inherit;
  
  
• facilitating a wide range of global investment opportunities;
  
  
• reducing probate costs by removing property from an estate; and
  
  
• avoiding potential monetary exchange controls.

Why is Bermuda a sound location for an APT?

Although offshore or foreign trusts need not be established in an APT jurisdiction such as Bermuda, to provide creditor protection, the specific legislation in such jurisdictions provides an added level of protection.

Bermuda is one of a handful of jurisdictions in the world approved by every international initiative in the past 10 years. Bermuda-based trusts are highly flexible structures that enable residents and offshore clients to implement personal financial planning strategies that can help protect and grow their wealth. As the world’s premier offshore jurisdiction and an innovator in trust administration, Bermuda features a supportive regulatory environment and a sophisticated financial infrastructure, with standards comparable to those of the United States and the United Kingdom.

Currency is the Bermuda dollar, on par with US dollar. Both circulate interchangeably. There are no exchange controls on foreign currency and Bermuda is tax-neutral for non-residents: no income, capital gains or corporate taxation.

For more information on International Trust solutions, please contact us.

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