International trusts are widely used as an effective tool to preserve and increase assets. Most parents today have become more experienced in investing funds to protect their children’s future, and are often willing to start saving for them even before they are born. In general, the main concern of parents is to pay for the education of their children and provide the best conditions when they want to buy a property or start their own business.
One way to achieve these objectives is to create an international trust or trusteeship in Cyprus (CIT). This trust can function as an investment fund that allows the trustee to manage the assets in favor of the beneficiaries.
The trust is also a reliable way for parents to guarantee the present and future of disabled children by assuring them that, in the event of any unforeseen event, the assets deposited in the trust will be protected and will only be used for the benefit of the children, as established in your minutes.
Advantages of the trust
Cyprus is a member state of the EU, and also a recognized international financial center that offers excellent opportunities for the creation and operation of trusts. The activity of the Cypriot offshore trusts is governed by the Trusts Act of 1955 (Art. 193) and the International Trusts Act of 1992, as amended in 2012. The amendments introduced in 2012 in the International Trusts Act provide a maximum level of protection and ease in the use of this type of trusts. In addition, Cyprus has a high level of professional attention at reasonable prices and all the necessary infrastructure.
The international trusts of Cyprus are widely used in so-called “family circumstances”; for example, in the following cases:
-Maintenance of the property of minors or future generations;
-Private provision to other people;
-Protection of assets against corruption;
-Creation of a fund for family members in order to cover possible needs as they arise;
-Provision for family needs of marriage and protection of assets in case of dissolution, etc.
The process of creating a CIT in Cyprus is quite simple; In addition, it can be done so that the trust adjusts to the particular circumstances of each individual. To do this, parents can, together with specialized lawyers, establish an individualized trust for their children.
First, making the property available to the CIT will reduce tax expenditures. The income of Cypriot offshore trusts obtained outside the country is not subject to liens.
Second, the assets deposited in the trust are stored and managed with complete privacy. The CIT is not obliged to make public its financial statements and the documents of the constitution of the trust are available only to the interested persons; outsiders do not have access to them or their content. In addition, it is possible not to indicate in them the name of the beneficiaries, but only the relationship that you have with them (for example, wife, son or daughter).
Well-to-do parents can distribute the inheritance among their heirs in advance using the trust as an alternative to testaments. This action will guarantee that the children inherit their share under the following conditions:
-Without inheritance acceptance deadlines set by your local jurisdiction;
-No taxes applicable to the inheritance in your country of origin;
– Without other requirements related to assets or assets transferred to the fiduciary administration.
Another advantage of the creation of an offshore trust is the protection of assets against the negligence of the beneficiary. Thanks to the offshore trust via OffShoreCitizen, your assets will be protected and insured for future generations.