- Permit the original owner (settlor) to concentrate a group of his assets and manage them through a trust.
- To perform a number of disposals or successions at the settlor’s discretion, without occurring additional tax liabilities and without subjecting oneself to compulsory rules of inheritance that govern post mortem distributions.
- It allows for a flexible and effective asset management and controlled distribution, timely, to family members and others, in the stages or under the conditions that the original owner wishes.
- They can be designed to function at a chosen moment in time or only after the death of the settlor occurred.
- As a means of asset protection against potential seizures or other damages brought by future creditors, in particular in the context of safeguarding a business operation from professional liability claims in litigious societies.
- To allocate benefits for third parties without passing them the actual control, which will be maintained in the hands of the trustee. The last, in his turn is bound by the terms of the trust as it has been expressed by the settlor.
- A trust, in an asset structuring function, can be designated to hold whole businesses or shares of a company on behalf of a beneficiary. This extra step can guarantee discretion.
- Protect a business from disintegration or dissolution by heirs and guarantee continuity in the hands of competent trustees and in accordance to the wishes of the settlor.
- To guarantee securities issues or as an alternative form of guarantee for banking credits.
- Trusts are often used for general investment purposes in the international stock markets, in mutual funds, or in real estate.
- Trust Services: New Zealand Trust, Panama Trust and Vista Trust
For further information
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- Panama as an added value to SEM companies: a reflection 10 years later