Assets Protection Trust

A trust is established when a person, known as the Settlor, transfers assets to a Trustee.  The Trustee is then the legal owner of the assets and is responsible for managing and distributing the assets to the beneficiaries in accordance with the terms set up in the trust deed.

The trust provides use and entitlement to all or part of the assets and its benefits while at the same time protecting said assets and conditioning how the assets are used.  Trusts allow for someone else to manage the property, which can be useful when the property management requires significant time or skill; for example, in the case of management of real estate properties, a commercial business, an investment portfolio, etc.

Trustees manage the assets per instructions detailed in the trust deed and follow the trust legislation of the country in which the trust is established.  The jurisdictions offered by Aspen Global Incorporations Limited are English Common Law jurisdictions.  Trusts are the most dynamic and commonly used offshore vehicle.  Its mechanisms and legalities have been tried and tested true time and time again. 

Uses of a trust

•	Provide or benefit from assets in total privacy.  Most offshore jurisdictions do not require that a trust be registered.
•	Protect wealth and assets acquired.
•	Personal security and safety.  In some countries, personal security is an issue, thus the need to protect assets through the establishment of a trust.
•	Hold bank deposits.
•	Hold investment portfolios.
•	Protection from political and economic instability.
•	Protection against creditors and potential enemies.
•	Transfer estate without complications and tax-efficiently.  Trusts keep assets out of probate because the assets don’t belong to the settlor anymore.
•	Avoid forced heirship.
•	Provide discreetly and with certainty for a loved one.
•	Provide for minor children, incompetent, elderly or those who are unable to manage their own affairs.

Type of assets that can be settled in a trust

•    Cash/bank accounts.
•    Investments.
•    Art, auto, wine collection, jewels.
•    A business.
•    Shares or holdings in any company.
•    Future rights or entitlements to ownership.

The cost of creating and administering a trust can vary considerably, depending on its type and duration. Trustee's fee may vary with the skill and expertise the trustee offers. Charges may also be influenced by the size and complexity of the trust estate. This affects the nature and amount of services required, such as record-keeping, asset management and tax planning.

In addition to legal and trustee expenses, there may be accounting, real estate management or other service fees. Other common charges include annual, minimum, withdrawal and termination fees. 

What is a will and who needs one?

A will is a document which states what an individual wants to do with his/her property upon their death.  The document will explain how the person wants their assets distributed and identify which assets go to which person.  By preparing a legally valid will, a person can avoid having their probate estate pass on to others via intestacy statutes. The person who made the will must do so freely and of their own volition with the true intention to have the property distributed as discussed in the will.

The person preparing or granting the assets in a will must fulfill 4 general requirements in order for the will to be legally valid: 

•    Legal capacity
•    Testamentary capacity.
•    Testamentary intent.
•    Follow specific formalities. 

Can a trust be established without a will?

Yes.  But it is not adviseable.  A trust can directly protect particular assets and avoid being held up in probate but a will may have many other functions.  A will can be used to appoint a guardian for minor children or for those who are not competent to take care of themselves.  The will can be used to appoint or indicate a trustee of the decedent’s (the person who died) assets.  The will can also appoint an executor to handle the assets until the estate is settled.

What if I don’t have any money or property?

Then you probably wouldn’t be reading our website.  However, a person does not have to be rich or have a large estate to make a will.  Personal property can be included in a will, things such as furniture, cash, jewelry, cars, household goods, clothing, land, or a house, pets, minor children, etc.  The important thing is to indicate what to do with each of these things and how you wish to take care of your loved one.  If married, each spouse should have a will.

A person is said to have died intestate, when there is no valid will.  When this happens the court appoints an administrator to handle the decedent’s affairs and then the property is distributed in accordance with the law.  Problem is, that most of the time, the distribution in accordance to the law is not what the decedent would have desired.  After payment of taxes, debts, funeral expenses and administrative costs, the property goes to the surviving spouse, children and/or relatives. The laws are specific as to how property is to be distributed, including which relatives have priority and how the property is divided.

A trust and a will are the perfect combination.  We offer professional assistance in the preparation of wills in common law and civil law jurisdictions.  For civil law jurisdictions, please consider the use of a foundation.