Trusts are legal arrangements where a trustee holds and manages assets for the benefit of beneficiaries. The key parties are the principal/founder who transfers assets to the trust, the trustee who manages the assets, and the beneficiary who receives benefits from the trust assets. There are different types of trusts including expressed trusts based on a declaration of trust and implied trusts established by law. Trusts can be used for various purposes such as preserving anonymity, joint property ownership, protecting beneficiaries' assets, charitable giving, pensions, and tax avoidance. Modern offshore trusts offer flexibility, tax benefits when the beneficiary resides in the trust registration country, and protections for beneficiaries' interests.

1. Trust
(Trust company)
Prepared by:
Velyka Nataliya
Poberezhnyuk Andrii

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Trust Company - additional liability, which represents such
activities in accordance with the contract
concluded with the client to implement the
property rights of their owners. Property is the
principal means valuable papers and documents
certifying ownership of principal.
Principal assets - a legal entity or an individual that deliver
trusts the owner of their property under the
terms of the agreement concluded between
them.
Trust operations -
services that a trust gives
principals the property.

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Trust features:
Trust feature as another form of holding property in the property trust is not a
founder (he loses ownership of the transfer of property manager) or manager (he
only manages this property is the formal owner of title to property), or beneficiary
before the date of termination of the trust.
Trust is based on the equity commitment, in which a person trusts - trustees
should dispose of it controlled property (trust property) for the benefit of persons
(beneficiaries or beneficiaries), among which he can treat himself, each of which is
entitled to demand the enforcement of the obligation. any action or inaction on the
part of the trust, unauthorized or unjustified conditions document on the
establishment of a trust or provisions of the law, is considered breach of trust.

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«Magic triangle»

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Trust company creating features :
agreement on responsibility for obligations to commercial
bank and the trustees of the property, the right of trustees
for signing checks or conducting other operations to obtain
documents that are in safekeeping in a commercial bank;
statutory fund trust company shall be not less than 1 m .;
participants trust company liable for its obligations with their
contributions to the charter capital, while the failure of these
amounts - in addition to their property five times the
contribution of each participant.

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Fiduciary Society:
 for citizens - preservation and representation services for
property maintenance trustees;
 for legal entities - disposal of property agency services,
accounts of owners of securities and management of voting shares
transferred by trust companies to participate in the general meeting
of the company.

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Types of trusts (on the basis of):
• These are the costs incurred by signing the
declaration of trust (deed of trust).
Expressed trusts
• These are trusts arising by virtue of the
presumption under the law, judgment, or when it is
kind of circumstance is clearly spelled out in the
legislation.
Implied trusts

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Types of trusts (the nature of property management
and office of trust):
simple or passive trust
• its judgment beneficiary may terminate this trust and to demand
the return of property;
fixed trust
• Founder usually prescribe in advance the category of
beneficiaries and prescribes that income in which proportions,
for which the beneficiary must be distributed;
discretionary trust
• Trust defines the range of beneficiaries and distribute income on
your own; founder of the trust - simply prescribes that a person
can enter the circle of beneficiaries, but it says nothing about
income that should be distributed.

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Required elements of trust:
• Certainty of intention
• Definition about the object
• Definition about the subjects

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The purpose of the use of trusts:
• Most of the content will (after the death of the testator) and names
of property owners is public information. The names of the recipients of
the trust generally known as tenure or distribution of bequests through a
trust can keep privacy.
Anonymity
• Trust is a convenient mechanism for joint ownership of property (eg
real estate) several owners.
Joint ownership of property
• Trusts can be used to protect beneficiaries (eg children's founder) of
their inability to spend money. Thus, the terms of a trust may restrict the
use of money or the age from which a child gets the right to dispose of
property.
Preservation of capital embezzlement

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•In some countries, all property, turned to
charity must be in trust.
Charity
•Corporate pensions are often organized as a trust, which is the
founder of the company, and employees - beneficiaries.
Pension plans
•In the finance and insurance, trusts are often used as legal
entities, along with companies.
Complex corporate structures

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•Trust provides anonymity in which one and the same person can be a
founder and the beneficiary (not the trustee), thereby gaining all the
benefits from the property, but hiding it from creditors.
Hiding property
•Anonymity and separation founder, trustees and beneficiaries of a
trust make convenient mechanism for tax evasion. Thus, the trustee in
many offshore countries are not obliged to report the income trust tax
office (another) country where the beneficiaries reside. These features
are used trust and money laundering. Another way to evade taxes by
using a trust is possible in the case of a progressive income tax when the
income-property formally owned by the trust (in many countries this
loophole is closed, and the tax rate for very high trust). Also, transfer of
property through a trust exempt beneficiaries from paying inheritance
tax, which exists in almost all countries that use trusts.
Tax evasion

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• Purchase or translation of all significant
assets in the name of trust allows to declare the
absence or insufficient presence of its assets
and to apply, for example, the use of lower tax
rates or to receive assistance from the state.
Hiding income
• When transferring the property to the trust
founder of the trust loses all rights to the property if
the trust agreement is correct. Thus, the property is
inaccessible to creditors of the founder of the trust,
the claims for the division of property and to
separate personal property from business assets.
The latter is particularly important in countries
Anglo-Saxon legal system, where the individual
can be recognized bankrupt person, with
subsequent recovery of personal property for
debts.
Save property

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Offshore Trust:
The most interesting jurisdiction for the establishment of a trust - British Virgin
Islands, the Bahamas, Belize, Cyprus, New Zealand, Panama, Liechtenstein.

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Trusts for inheritance:
One of the main destinations of trust - succession planning. The shape of the Trust
to close the covenant, but has several advantages:
1) provides an opportunity for the life of the founder of the assets separated
from the main property for inheritance;
2) heirs guaranteed inheritance, they need not fear creditors, bankruptcy or other
contingencies;
3) founder entitles establish the conditions under which the beneficiary will
receive the trust assets or income from their use;
4) simplification of international inheritance property overrides the need to
make separate wills in each country where the founder has ownership;
5) after the death of the founder, depending on the terms of the agreement of
trust property or move to beneficiaries, or left in trust for their own benefit.

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Advantages of modern offshore trust:
 flexibility of employment contract;
 If the beneficiary - resident country of registration of the trust, the
income and capital gains of the trust are not taxed;
 the appointment of a trust protector;
 no restrictions on the trust assets and their geographical location;
 high level of responsibility trustees;
 ability to protect the interests of the beneficiary in court;
 not recognizing the compulsory inheritance;
 consideration litigation law jurisdiction solely on the
operation of the trust;
 complicated procedure for judicial review of lenders.

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Thank you for your attention!