Trusts, Trustee and Foundations 10 myths and legends

[offshoreoffice]

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1) A Trust will protect me from any criminal activity any of the subsidiary companies or in otherway related companies.


That's not true, if the ongoing activity in the company is considered International Criminal activity you will be held responsible for any such activity. Who and what decide that it is a criminal activity that is going on will be the government body in the jurisdiction where the trust is incorporated. Most often under presure of countries like the USA, UK, France and Germany.


2)A Trustee must be appointed by the agent who form the Trust!


No, defiantly not, it is the beneficial owner or founder of the trust that appoint the trustee which can be a company where the founder / beneficial owner is a director.


3) A Trust can do business directly or indirectly with other businesses worldwide.


That's true, but most often you want to form a trading company for such purpose.


4) A Trust is a independent legal intety that is protected by laws of the jurisdiction where it is established-


Again true, it will protect their owners from almost any law suites as long the activity isn't considered International crime.


5) If a Trust is established and founded by a Foundation in another jurisdiction I don't need to provide personal documents.


True, that's an additional tool to protect your privacy, additional information need to be requested.


6) A foundation in Panama will protect my privacy as much as a Seychelles Foundation does.


That's not true, the Seychelles Foundation has a much higher level of privacy than most other entities worldwide.


7)A Trust can own properties, vessel and other assets and protect them towards lenders and creditors.


That's true, everything you have bought from your hard earned money can be moved into the Trust and be protected there. Most often it makes more sense to sell all your assets to the Trust or let the Trust buy them directly.


8) If a company who's shares are owned by a Trust goes bankruptcy the Trust will be holde responsible.


That's not true, the lenders and creditors that lend money to the company have no rights whatsoever to claim anything at the trust.


9) If I die the agent who has established my Trust will get all assets!


No, defiantly no. When you establish a Trust it is mandatory to outline who in such case has to become ownership of the entity and it's assets.


10)A Trust will only be useful if I own asset for millions!


That's defiantly not true, anyone who is earning money and want to protect what it can buy, should consider a Trust to be paramount of it's business entity structure.


Some interesting and funny reading:

Among the questions: Who actually bought the Hot Lotto ticket? Who are members of the trust that stepped forward to claim the prize less than two hours before it expired? Where was the ticket for 364 days, and why did the trustee risk sending it by FedEx to Des Moines one day before the deadline?
Here's what they know: Two attorneys from a Des Moines-based Law Firm showed up at Iowa Lottery headquarters with the winning ticket before the 4 p.m. deadline. They represent Hexam Investments Trust, whose trustee is a lawyer and businessman named Shaw from the wealthy town of Bedford, N.Y. Shaw signed the ticket, which was validated as the winner, on behalf of the trust.


"It's amazing things were cut that close. What if something had gone wrong? What if there had been a snowstorm? It was down to the wire," said Mary Neubauer, a spokeswoman for the Lottery, which had installed a countdown clock, repeatedly issued public reminders about the ticket and had been making plans to give away Iowa's portion of the unclaimed jackpot. "We just continue to be thrilled that the ticket that came in does ultimately preserve the winner's ability to claim this prize."


But before they pay a dime, Lottery officials say they will conduct a thorough investigation to make sure the ticket was legally purchased, possessed and presented. They were presented with another wrinkle Friday when they received calls from multiple, unrelated people claiming the ticket was stolen from them.


Steve Bogle, the lottery's vice president of security, said it had never faced similar circumstances in its 26-year history: a huge jackpot claimed so close before the deadline, a winner who sent tight-lipped lawyers to claim the prize rather than showing up in person, a trust whose members weren't immediately clear.


"Everybody's curiosity is very high. We hope to be able to get all our questions answered and that everything works out so we can award this prize," he said. "We will do this as expeditiously as possible but we will be very thorough and comprehensive."


Neubauer said it's not known whether Shaw, a 76-year-old Yale graduate whose website calls him "a leading international lawyer, financier and management consultant with offices in New York, London and Paris," is the winner or whether he simply represents others. She said investigators were in "initial conversations" with him and making arrangements to meet him in person.


Security footage showing someone purchasing the winning ticket ? numbers 3-12-16-26-33 and Hot Ball 11 ? at a busy Des Moines convenience store near Interstate 80 and Interstate 35 on Dec. 29, 2010, will be reviewed as part of the investigation.


Attorney Beau Gamble of the Davis Brown Law Firm claimed he had "no idea" who actually bought the ticket and his firm was simply representing the trust. Asked whether Shaw was the winner, Gamble said: "That will be up to the Lotto to decide. Mr. Shaw is not claiming to be the winner. He's just the trustee of the trust."


Gamble said he wasn't authorized to comment on any other details or what he called "the mechanics" of how the ticket was found and sent to Iowa.


Lottery officials said they first heard from the law firm Tuesday and were told it was representing a trust in connection with the jackpot. Neubauer said the ticket was shipped on Wednesday through FedEx, presumably from New York, and arrived at the firm Thursday.


"We look forward to learning the details we've all been wondering about these many months, such as: How did the winner find out he had the jackpot-winning ticket? How long has he known he'd won? Why did he wait until the last day to turn in the ticket?" Lottery CEO Terry Rich said. "Every winner's situation is different, and it's always fun to hear the story."


But Shaw wasn't talking Friday ? he did not return phone or e-mail messages. And his son wouldn't reveal what he knew.


She said other winners had formed trusts to split up prize money ? but they showed up to claim it themselves. As for Hexam, she wondered: "Is it somebody's initials?"


Despite the murky circumstances surrounding the ticket, she said its appearance should be a relief to hundreds of Lottery players who called suggesting they might be the winner.


"They didn't wash the ticket. They didn't lose the ticket. The dog didn't eat their ticket," she said. "We'd heard all of those stories and more."

More reliable information you can find here. Trust establishing Seychelles.

 

[tax-haven]

It's an awesome and helpful reading. I hope it do help people to understand a Trust isn't that complicated.

 

[JohnLocke]

Thank you for sharing your thoughts and the sample of a Trust to be used..

 

[Spinat]

To establish a Trust or Foundation is a great approach when you want to keep your assets and money away from lenders and creditors!

 

[JohnLocke]

Personally I think that it again depends on what it is you try to archive! If your business is small and you don't do alot of profits during a year it will be totally waste of time and money to setup something like this. You want to built your business stable and do good money before you go this route!

 

[suzy]

Personally I think that it again depends on what it is you try to archive! If your business is small and you don't do alot of profits during a year it will be totally waste of time and money to setup something like this. You want to built your business stable and do good money before you go this route!

What is big profits in your terms? I want to know when do you mean that it is benefitting my needs to go with an trust?

 

[JohnLocke]

Well, profits below EUR 50,000 year don't need to be put into a Trust, you can use a simple offshore company structure to protect that kind of money. You can even do a double company setup to maximize your protection both in regards to privacy but also agains lenders, creditors and tax authorities.

 

[lavel]

There are some cool setups where you can use both a trust and a offshore company in combination to protect your assets and privacy.


The below is a large setup which requires some money to get setup, however, if you have a growing business which is doing fine and may be doing profits above the mentioned eur 50k it may be worth to look at. actually it's an easy way to get your thinks protected on long term.

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and below is another sample of how you can structure your empire as it grows. You need to consider your options early in the process to avoid any troubles, taxes or questions later on. Also applicable law's may stop you setting up an offshore trust / company structure in combination one you're doing some high net profits.

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[JohnLocke]

There are some nice business setups and offshore company structures there Curtlee... It may help some to get the proper setup for his / her needs.

 

[alain]

There are some cool setups where you can use both a trust and a offshore company in combination to protect your assets and privacy.
The below is a large setup which requires some money to get setup, however, if you have a growing business which is doing fine and may be doing profits above the mentioned eur 50k it may be worth to look at. actually it's an easy way to get your thinks protected on long term.

/IMG/trust-structure-3.jpg​

and below is another sample of how you can structure your empire as it grows. You need to consider your options early in the process to avoid any troubles, taxes or questions later on. Also applicable law's may stop you setting up an offshore trust / company structure in combination one you're doing some high net profits.

/IMG/offshore-privacy-asset-protection-trust4.gif​

This structure shows well how a Trust can help you to get 100% asset protection and avoid any troubles in the future with anyone. Long live capitalism.