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.
ADVANTAGES OF A GIBRALTAR TRUST
There are many advantages to setting up a Trust in Gibraltar, the main ones being:
• Confidentiality - Except for Asset Protection Trusts there are no filing requirements and no information needs to be disclosed to any authority as long as no liability to Gibraltar tax arises.
• Tax benefits - As long as the trust is established by a non-resident, has no Gibraltar resident beneficiaries and derives no income locally (other than bank interest), no tax will be charged on the trust's income.
• Residence of Trustees - Trustees of Gibraltar trusts can be resident in Gibraltar without affecting the tax status of the trust.
• Perpetuity and Accumulation periods - Under Gibraltar law, both the perpetuity and accumulation periods of a Gibraltar trust are 100 years.
TAXATION OF TRUSTS
Providing the trust deed specifically excludes Gibraltarians and residents of Gibraltar from benefiting and any income arises outside of Gibraltar, the trustees will not be assessed for 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 trust 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.
• There are many more benefits of forming a trust please contact our family office Tel: +350 20048844 for further advice.
