A trust may be described as an arrangement by which one or more persons (the "trustees") agree to accept property from another (the "settlor") and to hold that property for the benefit of one or more persons ("beneficiaries") who may or may not include the settlor.  If created during the settlors lifetime, a trust will be established by deed and may take the form of a declaration by either the settlor or the trustees.

The trust deed will contain the terms on which the trustees are to hold the property, the powers the trustees may exercise and details of any protector (usually a person appointed by the Settlor to monitor the actions of the trustees).  It is also possible for a trust to arise on death and specific trust provisions are often incorporated in a person's will.

There are several types of trust which can be used, depending on the particular circumstances and requirements.  Examples of these include:

• Discretionary Trust
• Interest in Possession Trust
• Protective/Contingent Trusts

The Isle of Man is a highly favourable jurisdiction for creating a trust.  Manx trust law is very closely based on that of England and Wales, the main difference being that in the Isle of Man there are no restrictions on the period for which income may be accumulated in a trust. There is no requirement in the Isle of Man to make any public disclosure or filing in relation to a trust. There is no legal requirement for an annual audit but this can be specified by the trust deed, if required.

Provided none of the beneficiaries nor the settlor is resident in the Island (and the only income that will accrue from sources within the Isle of Man is either dividends or interest from approved financial institutions (for example banks), the trust will not be subject to Isle of Man income tax. In addition, there is no capital gains tax, inheritance tax or death duties levied in the Isle of Man.

The settlor and beneficiaries of each trust will, however, be assigned key contacts within Abacus to ensure a personal service. There are rare occasions where individual trustees are required and, in these circumstances, directors of Abacus may act as trustees.

Why create a trust?

There are many reasons why a person might wish to create a trust. Some examples of common uses would include:

• Confidentiality and Anonymity
• Succession Planning
• Forced Heirship
• Consolidation of Assets and Reporting
• Tax Planning

Related Services

Private Trusts Corporate Trusts Purpose Trusts