Asset Protection Trusts
Trust Fundamentals
A trust is a legal contract between the person establishing the trust (the settlor or the grantor) and the trustee. Trusts have evolved under English common law and have recently experienced a Renaissance both in the British Commonwealth jurisdictions and several states in the United States.
The asset protection benefits of a trust are derived from a trust’s very nature. The legal title to the assets of a trust is held by the trustee. Legal title allows the trustee to control the assets and determine their disposition and ultimate enjoyment. The beneficial interest in the assets of a trust is held by the beneficiaries. Thus, although the trustee holds legal title and controls the assets, the trustee’s discretion is limited, as it must be exercised for the benefit of the beneficiaries of the trust.
Benefits & Protections
This separate of legal title from beneficial enjoyment creates a wonderful asset protection opportunity. By transferring your assets to our custody, you effectively surrender legal title. This precludes your creditors from being able to reach the assets transferred to the trust. However, if you, your spouse, children or anyone else you designate is the beneficiary of the trust, ultimately, the enjoyment and the possession of the assets will revert to you. You literally can protect your assets, without losing them.
Additionally, the laws of St. Vincent allow you to appoint a protector for your trust. This will be a third party (a friend, a family member or a professional fiduciary) who will have authority to fire us as your trustee (should you so desire) and appoint a new trustee. A friendly protector will give you peace of mind as you will know that someone you know well and trust is watching over the trust.
Peace of Mind
This structure, and its asset protection uses, have been tested over many years and litigated in thousands of court cases around the world. There are few structures that will offer as much certainty as a trust in an English common law jurisdiction.
Under the laws of St. Vincent, your trust will not be subject to any taxation or fees, other than our annual fee which is inclusive of all government fees.
Value Added
While St. Vincent is used primarily as an asset protection jurisdiction for your trust, there are many other benefits that you can garner from a St. Vincent trust, including ownership of holding companies and operating businesses, holding investment portfolios and cash funds, life insurance policies, retirement plans, charitable purposes, non-charitable purpose trusts and other.