The concept of the Trust in Gibraltar is based on that developed in England with certain statutory differences. Gibraltar trusts are completely private and their existence does not have to be registered with any public authority. Generally shares in underlying companies are registered in the trustees names without evidence that they are held in trust.

Taxation of Trusts

Providing the trust deed specifically excludes Gibraltarians and residents of Gibraltar from benefiting, and income arises outside of Gibraltar, the trustees will not be assessed to income tax, estate duty and stamp duty. The Trust deed can be drawn up with a considerable degree of flexibility. RedMount Trust Company Limited is available and licensed to act as Trustee or Co-Trustee of any trusts in Gibraltar.

Benefits of Forming a Trust

Inheritance. A trust permits you to choose how your assets and the income arising from them should be distributed during and after your lifetime.

No Probate and Complete Confidentiality. A trust eliminates the need for formal probate proceedings before distributions can be made and, unlike a will, is not subject to disclosure.

Continuation. A trust can continue after your lifetime until children or grandchildren are old enough to manage wealth.

Tax Advantages A trust can provide very important tax benefits for present and future generations.

Can One Control Assets Held in Trust You? can reserve substantial powers within the trust structure, but to reserve too many powers in the trust risks it becoming ineffective legally and endangers the many advantages. There are mechanisms through which you can ensure that your wishes are met.

Importance of Common Law. The place, where your trust is domiciled, is called The Situs and is important because of the protection it can afford. Generally, we recommend a common law jurisdiction such as Gibraltar. Common Law can rely on one thousand years of legal precedents which makes it superior to statutory law.

     

Classification of Trusts
A Gibraltar trust may be either:
• Fixed. One or more beneficiaries are given specific beneficial shares in the trust fund;
• Discretionary. The trustee decides beneficial entitlement by selection from a nominated class of beneficiary.
Property to be placed on Trust. Assets can be settled in a Gibraltar trust by any person, and any type of property may be transferred to a trustee. There are no requirements as to the minimum capital to be held on trust and it is usual to settle only a nominal sum when the trust is established with further money or assets subsequently settled as an accretion to the fund.
Beneficiaries. The trust instrument will specify the beneficiaries of the trust or the nominated class of beneficiary.
Trustees. A trustee may be a private individual or a corporation.
Although trustees are not required to be resident in Gibraltar, it is usual for at least one to be a resident of the Territory to ensure that the trust has legal status in Gibraltar.
Management of the trust assets by the trustees is in accordance with the terms of the trust instrument and applicable laws.
The Protector. A settler of a trust may choose to appoint a protector to oversee the trustees and the administration of the trust fund. The protector is usually a confidante or professional advisor of the settler and may assist the trustee in the investment policy decisions and the distribution of income and capital to beneficiaries.