A trust is created when assets are transferred to a trustee. The trustee becomes the legal owner of the asset and is responsible for managing the assets and distributing them to the beneficiaries of the trust (which could include the person or corporation, called “settlor”, who transferred the assets to the trustee) in accordance with the terms of the trust.
The terms on which the trustee administers the trust assets are detailed in a document called trust deed. In addition many common law jurisdictions have also enacted trust legislation to govern and protect the trust’s assets, their beneficiaries and to guide the trustee in the administration of trusts.
There are various types of trusts and each one covers for specific requirements of settlors and/or beneficiaries.
When a trust is established in a suitable jurisdiction, such as the Isle of Man, provided that residents of that jurisdiction are excluded from receiving benefits from the trust, then there will be no local taxes applicable to the assets and income of the trust in that jurisdiction.
What assets can be held by a trust?
Some of the advantages of a trust
DCTS is licensed as a Class 5 Trust Service Provider which permits it to operate in or from the Isle of Man and can provide the following services: