Isle of Man Trusts - Explained
An Isle of Man Trust is a legal relationship between the settlor (usually the client) and the Trustees
governed by the Trust Laws of the Isle of Man.
The Trustees look after the Trust assets for the benefit of the Trust beneficiaries.
There are three principal parties to a Trust. These may be companies, legal persons or individuals:
- Settlor - initiates the Trust by gifting assets
- Trustee - legal owners and administrators of assets
- Beneficiary - intended recipient(s) of the Trust fund
There may also be
- Protector - who has an element of control over the Trustees
- Investment Manager
Benefits of a Trust
- Tax Benefits
There is no tax on income for Trusts established under the laws of the Isle of Man if none of the
beneficiaries are resident on the Isle of Man. There is no inheritance tax, capital gains tax, estate or stamp
duties on the Isle of Man.
- Probate and Distribution
The assets settled into the Trust are no longer legally owned by the settlor and as such should no longer form
part of the client's estate, avoiding costs, delay, legalities, publicity and unwanted probate procedures.
A Trust can provide for dependants. Distributions can be made as and when beneficiaries reach a pre-determined
age. Assets can be held in a Trust for the benefit of minors who would not be legally capable of holding it themselves
A Trust can continue after the death of the settlor, acting as a Living Will because the Trustee will administer the Trust
assets according to the instructions of the settlement.
- Security
Above all, a Trust provides security, confidentiality and gives greater opportunities for the preservation of
wealth. They provide protection for assets in unstable political and social environments.
Assets can be held securely for the benefit of persons incapable of holding them personally e.g. minors or the mentally handicapped.
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or
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a confidential discussion on how we could help you.
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