Trusts
A trust is one of the mostly used vehicles for the holding of assets worldwide either for the benefit of beneficiaries or for charitable purposes. AAMIL provides international investors with the following services, by choosing the best jurisdiction from which professional trusteeship services can be provided :
. Possibility of avoiding forced heirship rules.
. Segregation of trusteeship services into custodian and managing trustee.
. Provision of the office of Protector (so that the Settlor can retain some powers, since the Settlor can also be the Protector of the trust under some jurisdictions) and Enforcer of a trust.
. Tax exempt (non-resident trust) or low rate of income tax with access to double taxation avoidance agreements (resident trust).
. Incorporation and administration of an "underlying company" for the trust to acquire legal personality.
. Confidentiality guaranteed (registration of a trust is not required)
. No need to file accounts or annual returns.
Hybrids
A company limited by both shares and by guarantee (also known as a hybrid company) can be structured as a "quasi-trust". At AAMIL, we provide professional directorship services and shareholders (like trustees under a classic trust) for total control over a hybrid company so that all the financial benefits flow to the guarantor members (like beneficiaries under a classic trust).
Some of the multiple advantages of a hybrid company are listed below :
. Possibility of avoiding inheritance tax and estate duties upon the death of the guarantor member, since the transmission of the latter's interests will be made without delay and with less formality by the election of a new guarantor member by the directors.
. The rights and obligations attached to the shareholders and to the guarantor members can be specifically spelt out in the Constitution/Memorandum and Articles of Association of the company to suit each individual client's needs.
. Can be tax exempt or paying low rate of tax, but with access to double taxation agreements.
Foundations
A foundation is a vehicle which enjoys legal personality and which fulfils similar functions as those of a trust, but with the administrative flexibility of a company. It is mostly used in wealth management, estate planning and asset holding and is the civil law answer to the trust. AAMIL provides administration services for foundations, including the provision of a company or a third-party to act as founder and as a member of the Council and for the opening of bank accounts, amongst others.
The following are the major advantages of foundations :
. Legal personality.
. Confidentiality
. Protection of assets from the debtors of both the founders and the beneficiaries.
. Possibility of avoiding forced heirship rules in some jurisdictions.
. Investment flexibility - the Protector (who may be the founder) may retain the power to issue investment instructions.
. A foundation can hold various types of assets under a single structure.
For more information on the possibilities of setting up trusts, hybrids and foundations in the jurisdiction of your choice,
