Do trusts still hold 2020?

[Jade33]

EU resident, let's say I am not so good with financial administration and would like to protect property, assets/future investments and safeguard it for my children future.
Reading through this blog, lot of information, cyprus trust but full disclosure from now on.
I have read reports where government ruled against foreign trusts, so people's structure was useless leaving them exposed
I am not talking millions here but in today's strange times whatever you got is yours is priceless
So with all law changes, disclosures is it too complicated?

 

[Sols]

There is too much nuance both in the answer to your question and to the possible arrangements with trusts, foundations, and similar arrangements, for any kind of answer here to be applicable to your individual situation.

It's true you can't necessarily rely on secrecy or completely evade/avoid taxes anymore (at least it's harder than before), but asset protection can still hold if you're structured correctly and you might be able to lower the tax burden. It depends on the nature and purpose of the funds.

If you have significant wealth (you said not millions, but maybe one or close to one million) and realistic ambitions to grow this over the coming years and decades, speak with reputable service providers about your situation and get their feedback. It's doable for smaller amounts but be mindful that the overheads and fees will start becoming a relatively significant cost.

 

[Martin Everson]

You will need to now go well outside of EU and find non-EU service providers to gain access to such services. There is now a requirement for providers in EU to report any structure that helps you reduce taxes. The taxman then decides how they will screw you after the fact for trying to avoid tax.

In terms of trusts secrecy is gone. You will also gain little advantage tax wise by having assets held in a trust in 2020 other than avoiding probate and inheritance tax which for most is quite a considerable tax saving in that situation. Your best bet is to find an advisor well outside the EU and place assets well outside the EU then move yourself well outside the EU while you still can.