The Best International Tax Planning solutions since 1991	A A
HOME > Services > Asset protection > International Trust in Cyprus >

Whether intentionally or not, the above question invariably arises. From one point of view, the answer could be that there is no guarantee, as the Trustee becomes the owner of the assets, and can do what he wants with them. I either trust him or I don't. This argument could undoubtedly be true, if we didn't take a closer look at the documents which are prepared when the Trust is established.

The first and most important of these is the Declaration of Trust. This document sets down quite clearly who is entitled to what part of the assets. This document does not just gather dust in the safe of the lawyer's office; a copy is deposited in the bank in which the offshore company holds its account. Thus, the bankers also know exactly who the Trustee is holding the assets for, and who the beneficiaries are.

If the Trustee does manage the bank account of the offshore company, then he can not have access to the money while the Settlor is alive. Even if he does manage the account, he can only initiate transfers from the company's account in accordance with pre-arranged instructions, and there will also be a written record of this.

Upon the death of the Settlor, the regulations of the Declaration of Trust come into force, and the bankers are able to check this too, as a copy was deposited with them in advance.

It can be seen from this, that the possibility of the Trustee truly gaining access to the assets are regulated as effectively as is possible; he can not act arbitrarily with possessions placed at his disposal by other people.