What is a Trust?
A Trust is a relationship created at the direction of an individual (the Settlor), in which the settlor transfers legal ownership of property (the Trust Assets/Funds) to one or more trustees (the Trustees) subject to certain duties to use and protect for the ultimate benefit of others (the beneficiaries). The settlor may also appoint a person to oversee the trustee (the Protector).
Cyprus International Trust main advantages
The main advantages of a Cypriot Trust are:
- Stable and benign tax regime.
- Governed exclusively by Cyprus law. Protects against the application of foreign laws. All matters relating to Cyprus International Trusts are to be determined in accordance with Cyprus law.
- Powerful asset protection characteristics:
- Intend to defraud required to invalidate transfers.
- Unaffected by matrimonial property or succession laws.
- 2 year hardening period.
- Claimants must show that they were creditors at the time of transfer.
- UK Insolvency Act mutual assistance provisions do not apply.
- Statute of Elizabeth does not apply.
- Trusts may exist in perpetuity.
- Settlor may reserve powers or retain benefit of assets.
- Unrestrained investment powers.
- Confidentiality (registers of trusts maintained by regulatory authorities include information ONLY on the name of trust, trustees name and address, date of establishment, date of termination and of any change of trust governing law; Registers of trusts are not available to public.
- Settlors of Cyprus International Trust can relocate to Cyprus after establishment of the Trust.