Offshore trust – structure, provisions
A founder (who can be also a beneficiary), under a special agreement passes the valuables to the control of a trustee, who shall perform operations with them, bringing the maximum profit to the beneficiaries or other, relevant to instructions of the founder. Trustee services are paid by the beneficiaries or trust founder, usually as a percentage of the profits. The object of trust can be any property, both movable and immovable. The property expressly prohibited by the legislation of trust’s country of foundation is excluded from this relationship. The founder may transfer his property during his lifetime (lifetime trust), and provide such transfer after his death (testamentary trust). The trustee is responsible for the conditions of the trust agreement and, as a rule, gets wide powers to manage the estate of the founder, but can also get specific instructions on the distribution of trust income and capital between the beneficiaries upon the occurrence of certain conditions, clearly specified by the founder. Such conditions are usually included in the so-called founder’s letter of wishes, addressed to the trustee. The founder also has the right to make...
