Uses Of Trusts

It will be no surprise that the majority of trusts, established both onshore and offshore are created for the purpose of saving tax. However, there are many other reasons for establishing trusts, and in this article we look at a few circumstances where a trust might have a role to play in resolving potential problems.

A dilemma which faces many successful entrepreneurs is how to deal with the future of their company once they have made the decision to retire. Do they involve their children in the management of the business? Do they bring in professional managers? Do they sell the business?

If a decision is made to retain the business, perhaps due to fact that the level of profits exceed those available from an investment portfolio, or the company is still felt to have significant growth potential, thought should be given to placing the shares of the company into trust. The advantage of holding the shares in trust is that the ownership of the company will be held by trustees for