Different Types of Offshore Trusts

While there are many different kinds of trusts you can establish, they all have one thing in common - there are three parties recorded on a trust deed:

1. The Settlor is the person entity whose assets fund the trust.
2. The Trustee is the person or entity who is the administrator of the trust.
3. The Beneficiary is the person or entity in whose name the assets are managed.

The first level of distinction between types of trusts separates them into two categories:

1. Irrevocable - once the trust is established, it cannot be altered or dissolved.
2. Revocable - the settlor has the right to alter or dissolve the trust at any time, either by previous arrangement or due to changed circumstances.

Under these categories, the trustee can be given certain administrative powers, determined as follows:

1. Discretionary trusts allow the trustee to vary the disbursement of assets among the named beneficiaries.
2. Fixed interest trusts are determined by the settlor and cannot be altered by the trustee.

Within this basic framework, there are a practically infinite number of ways to customize a trust. For more information on how the establishment of a trust can benefit your portfolio and secure your assets, contact us today.

If you’d like to learn about how a trust is set up, please click here.