Share Trusts: Flexibility, Succession and Privacy

Introduction

As investors continue to seek innovative ways of investing, managing and safe-guarding their resources, an increasing number are considering the specially crafted Harneys' Share Trust, which is regarded as a useful tool for succession planning. Designed by Harneys and used by many of our clients to provide a simple and flexible solution to succession planning for owners of shares in BVI companies, the Share Trust structure gives owners unprecedented freedom to manage succession to those shares with minimal interference to the business of the BVI company or enjoyment of the company's profits.

The creation of a Share Trust requires the owner of shares in a BVI company, referred to hereafter as the settlor to transfer his or her shares into trust, allowing legal ownership of the shares thereafter to be held by a trustee. This article examines the advantages of establishing a Share Trust, explains how it is established and compares it to other trust