Offshore Trusts are excellent tools and are used for wealth protection, estate planning, tax structuring, and succession planning purposes.
Trust creation in Mauritius for asset protection
An offshore trust can be established in Mauritius under the hybrid laws which makes it one of the most popular. Mauritius trusts are governed by The Trust Act 2001 and provide the Settlor with adequate protection and comfort for long-term wealth management.
It preserves family assets over generations with the greatest tax efficiency, as well as avoiding inheritance laws, forced heirship rules, probate proceedings, and other obstacles.
What assets can be held by an Offshore Trust?
- Real estate (commercial or residential)
- Shares in companies, funds, unit trusts
- Investments
- Insurance policies
- Other assets
How can a trust benefit you?
Tax Planning
Trusts that are properly established may result in substantial savings in income tax, capital gains tax, and inheritance tax.
A greater degree of confidentiality
The creation of a trust provides increased confidentiality by protecting the identity of the settlor, trustee, and beneficiaries. It is possible to enhance confidentiality by using an underlying company. The offshore trust deeds are not public records in Mauritius.
Creating an estate plan
Asset distribution arrangements can be complex for settlers. Children's education and providing an income for a spouse are common considerations. This can be done easily and conveniently through a Trust
Keeping your creditors at bay
Trusts with discretionary powers offer the advantage of asset protection. As an example, if the settlor's business goes bankrupt, the beneficiaries are protected from losing their assets. Since the legal ownership of the trust assets lies with the trustees, not the settlor, creditors cannot pursue claims against the trust assets.
Succession Planning
With a trust, the settlor can specify who shall benefit from the trust fund, how much they will benefit from it, and at what age those benefits will become available.
Foreign Succession Law Protection
A trust can prevent assets from being subject to forced heirship restrictions in foreign countries upon the death of the owner. Assets held in trust in countries outside their jurisdiction cannot be seized by foreign governments.