Many people would like to avoid the consequences of legal ownership of assets such as taxes while enjoying the benefits of ownership such as wealth. Using trusts makes such an arrangement possible.
Most countries base their legal system on either civil law or common law. In civil law countries such as France, Austria, and Costa Rica, domestic trusts are either uncommon or not legally recognised. This makes offshore trusts of great importance for residents of civil law countries who want to reduce their taxes and protect their assets. Common law countries such as Canada, United States, U.K. and Cyprus recognise trusts quite freely and many people establish trusts onshore for asset protection or inheritance purposes. Offshore trusts, however, provide additional benefits. With their liberal taxation laws and strict confidentiality practices, offshore jurisdictions are ideal bases for trusts of all kinds.
