Choosing the right Jurisdiction?
There are many jurisdictions, both onshore and offshore, in which it is possible to set up a trust. When choosing the best jurisdiction it is important that it offers:
- Strong tradition of enforcing trusts
- English Common Law system
- Established reputation for trust business
- Modern legislation including contemporary trust refinements
- Low or no taxation for trusts.
In the light of these requirements, the onshore jurisdictions such as the UK, USA and Australia are unsuitable because of high tax. Some jurisdictions cannot be recommended because of political uncertainty or because, as they have only recently started to attract trust business, their courts and professionals have limited trust experience. Other jurisdictions, whilst being noted for their expertise, have not kept pace with the modern trends in legislation that bring additional benefits and additional protection to trust assets. Some of the traditional trust jurisdictions, such as Jersey and Guernsey, fall into this category.
There is a very wide choice of jurisdictions but only a small number are able to offer all the important elements. Although there are other jurisdictions which offer similar advantages, UJ believes that Gibraltar, the Turks & Caicos Islands and the Isle of Man are amongst the best available. Gibraltar and the Turks & Caicos Islands,
in particular, have initiated strong asset protection legislation and have a requirement that a Professional Trustee must be licensed. Trust companies are therefore required to prove to the licensing authority that they have the necessary probity, experience, financial resources, management methods and indemnity insurance to ensure that they operate in a totally proper and professional manner. Sovereign Trust (Gibraltar) Limited and Sovereign Trust (TCI) Limited are fully licensed to act as Professional Trustees in their respective jurisdictions and are pleased to accept instructions to act as a Trustee of any trust on behalf of UJ. The Isle of Man, where Sovereign also has an operating subsidiary, is to introduce similar licensing requirements soon.
For further information on our services, please send us your name, address and any particular details of interest by e-mail.