In essence, a trust is a legally recognised entity, quite separate from a company, that permits a person (referred to as the Settlor) to donate assets to the trustee for the benefit of others, namely the beneficiaries. Under certain circumstances the Settlor can also be within the class of beneficiaries.
Unlike a company, Guernsey Trusts are not registered on formation, neither are they obliged to file any form of annual return. The existence of a trust is not a matter of public record. Hansard provides trustees, both individual and corporate, to administer Guernsey trusts on behalf of the beneficiaries.
By virtue of the trust deed the Settlor is legally divested of the assets settled into the trust, and it is this factor, among others, that permits a Guernsey trust to be utilised effectively in tax planning. |
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