Civil Liability - The Need For Protection

The extent of civil liability for negligence among professional persons and those in business and concern about the cost and availability of professional indemnity insurance have given rise to consideration of foreign-based trusts for the protection of assets.

In December 1990, amendments to Gibraltar's Bankruptcy Ordinance came into effect, effectively allowing protection in law that under certain circumstances a Gibraltar Trust can not be set aside by creditors of the settlor.

In order for a trust to be afforded the protection of the legislation certain criteria in relation to the settlor, the trust and the trustees must be met.

THE SETTLOR

The settlor must be an individual, he must not be insolvent at the date of the disposition nor become insolvent as a consequence of the disposition and he must not be subject to any outstanding litigation.