There are many jurisdictions, both onshore and offshore, in which it is possible to set up a trust. When choosing the best jurisdiction it is important that it offers:
- a strong tradition of enforcing trusts:
- an English Common Law system:
- an established reputation for trust business:
- modern legislation including contemporary trust concepts – particularly Asset Protection Trusts:
- low or no taxation for trusts.
In the light of these requirements, the onshore jurisdictions such as the UK, USA and Australia are unsuitable because of high tax. Some jurisdictions are not recommended because of political uncertainties, or because they have only recently started to attract trust business with the result that their courts and professionals have limited trust experience. Other jurisdictions, whilst being noted for their expertise, have not kept pace with the modern trends in legislation that bring additional benefits and additional protection to trust assets. Some of the more traditional trust jurisdictions, such as Jersey and Guernsey, fall into this category.
There is a very wide choice of jurisdiction but only a small number are able to offer all the important elements. Although there are other jurisdictions which offer similar advantages, we believe that Gibraltar, the Turks & Caicos Islands and the Isle of Man are amongst the best available. Gibraltar and the Turks & Caicos Islands, in particular, have initiated strong asset protection legislation.
Sovereign Trust (Isle of Man) Limited, Sovereign Trust (Gibraltar) Limited, Sovereign Trust (Guernsey) Limited and Sovereign Trust (TCI) Limited are fully licensed to act as Professional Trustees in their respective jurisdictions.