Trust
A trust is a great tool to distribute and arrange one’s assets. It provides certainty that the family is provided for. Winding up an estate is a time consuming and costly process during which the beneficiaries may not always have full access to the assets. Establishing a trust enables a seamless process that limits further family life disruptions.
Reasons for Establishing a Local Family Trust
- Control - Family Trusts allow you to maintain control over your assets even after you pass away. You can stipulate how the assets will be used and distributed. Family Trusts provide flexibility in managing and distribution of assets. You can choose who will be a trustee. It can be a choice of a family member, a corporate trustee (Fortress Africa) or a combination.
- Tax benefits - It is expensive to die. Your estate can avoid a certain percentage of estate duty, property transfer fees and capital gain on the value of properties disposed from the estate, depending on your circumstances.
- Avoiding family disputes
- Trust funds and assets can be segregated from client creditors.
- Trust can hold shares in an underlying company which undertakes investments. If the investment goes wrong, the company is cut off and leaves Trust unaffected.
- Family Business Continuity – Most family business don’t have company preservation mechanisms in the event of the death of the business owner. Family members may not have skills to run the business or manage it, up to the point of disposal. A Trust can provide for trustees to step into the business to stabilise it, in the event that the business owner passes on.
- Privacy - Unlike a will, a family trust allows you to keep your assets and instructions private.
Fortress Offshore Family Trust
Isle of Man
If an individual acquires a property outside of their country of residence, upon their death, their beneficiaries will incur significant probate costs in a foreign country – These are legal costs of solicitors and court fees to wind up a deceased person’s estate. This may be up to tens of thousands of US dollars, before including the trauma that beneficiaries may undergo in an effort to secure their inheritance in a foreign land. The above can be avoided if a Trust is established, which in turn would own the property.
Reasons for Establishing
a Foreign Family Trust
Asset
Protection
The Trust can maintain a bank account, and provide peace of mind, as funds are saved in a stable currency, with limited inflationary pressure.
International
Trustees
Access to international trustees with connections to intermediaries, globally, who can assist with investments, property, etc.
International
Investments
Trustees may explore Investment opportunities abroad, if instructed to. Whilst not significant, an investment return can be made in a secure and safe environment.
Secure
Assets
An individual can avoid the safety concerns of holding cash at their place of residence or in a lockbox underneath a building society.
Why You Can trust Fortress?
Fortress was established in the Isle of Man in 1994 and is registered with the Isle of Man Financial Supervisory Authority.
Directors of Fortress Africa and IOM are reputable and of good standing.
Most family trusts are drawn up by independent lawyers from purely a legal perspective. However, Fortress combines legal, as well as financial and business advisory skills to assist its clients to establish and maintain Trusts that are optimum for their family and business circumstances.
FAQs
Frequently Asked Questions
That is the best time to establish a family trust because it is cheaper to acquire assets directly into a Trust as opposed to subsequently transferring them into the trust.
Yes, we can, we work with a corresponding firm in South Africa which offers the same service.
Yes, we can, we work with a corresponding firm in Mauritius which offers the same service
