Here are some questions you need to get answered in written and which can be useful to spend some time on, it will come handy once you want to get started to establish your trust.
EXPLANATORY BOOKLET TO TRUST QUESTIONNAIRE
Each trust is specifically prepared in conformity with wishes that vary from client to client. Instructions and answers to the questionnaire will help us prepare a more appropriate deed. Each question has been asked for a reason and the numbers of paragraphs in this booklet are as stated in the questionnaire.
REASONS FOR FORMING THE TRUST
1. Protect assets from creditors past, present and future
Assets held in trust in a jurisdiction may have considerable protection against claims arising in another jurisdiction. If the answer to this question is yes then state in your answer to question 11 that settlor is a beneficiary in the case of some calamity befalling him.
2. Take care of beneficiaries
The answer to this question should always be yes unless this trust is being created for a purpose such as a charity and beneficiaries are not specifically identified. Should some beneficiaries be more important than others then state in your answer to question 11 the conditions upon which some beneficiaries have preference over others.
3. Part of taxation planning
Trusts can help to reduce or avoid income or capital gains taxes. Many countries base their taxes on residence of the taxpayer. A Seychelles is usually not a resident of a country other than Seychelles.
4. Protecting beneficiaries from creditors
Assets can be held in trust for specifically named beneficiaries, who are chosen, based on set criteria. Benefits can be given to beneficiaries in the form of monthly payments and essential payments such as education and medical bills are met by the trustees.
5. Protecting beneficiaries from consequences of bankruptcy
Assets can be held in trust for specifically named beneficiaries, who are chosen, based on set criteria. Benefits can be given to beneficiaries in the form of monthly payments and essential payments such as education and medical bills are met by the trustees. For example: A trust has been set up for minors in a family and the breadwinner, who himself is not a beneficiary, becomes bankrupt. The beneficiaries will enjoy considerable protection from the claims of creditors in the bankruptcy.
6. Achieve maximum privacy in one’s affairs
Trust deeds are completely confidential documents and can only be seen by third parties based on a Court Order and that can only be obtained in limited circumstances involving criminal activities. Should a trust be set which owns a company, settlers are referred to various additional services that cclogic provides such as bearer shares, postal address and fax address services.
7. Divorce risk planning before marriage
Assets can be held in trust for specifically named beneficiaries, who are chosen, based on set criteria in the event of a failed marriage. In this type of trust a beneficiary may not have significant control over trust assets. Ex-spouses can likewise discover that assets enjoy considerable protection in terms of the law against their claims.
8. Avoiding inheritance taxes
Trusts can help to reduce or avoid inheritance taxes and estate duties.
9. Foreign exchange control planning
Assets held in trust in a jurisdiction may have considerable protection against claims arising in another jurisdiction. Ownership of assets from a Seychelles base can have major advantages.
10. Managing consequences of professional risks
Assets held in trust in a jurisdiction may have considerable protection against claims arising in another jurisdiction. Assets can be held in trust for specifically named beneficiaries, who are chosen, based on set criteria. Benefits can be given to beneficiaries in the form of monthly payments and essential payments such as education and medical bills are met by the trustees.
11. The purpose of the trust
A brief description of the reasons for forming the trust can be very useful when drafting the deed and also getting the instructions to the trustees on a firm footing.
12. Settlor
It is important that we have the full details of the settlor as he is most likely to know the addresses of all the beneficiaries. If for some reason we lose track of a beneficiary we will contact the settlor for the latest address. If there are two or more settlors, as in the case of a married couple, then these details are required of all settlors to the trust.
13. Name of Trust
We prefers to be given a choice of at least 2 names for the proposed trust. It is important that trusts do not have very similar names to other trusts as confusion and consequent mistakes may result. The name itself can be a family name in the case of a family trust. The use of the forenames of one beneficiary is not recommended as this can create the impression that one beneficiary is meant to be favoured over others. This can be misleading especially in the case where the facts dictate otherwise. Often names that have no connection to any beneficiary are work best.
14. Initial Trust Fund
An initial trust fund can arise out of a settlement or gift of assets to the trust. For the sake of simplicity our Trust accepts cash (via bank transfer) or company shares. Numerous complications arise when settlors seek to settle other types of property to a trust. For instance some company registrar’s refuse to recognize trust ownership of shares and the laws of some countries fail to recognize trusts at all. But legal systems worldwide generally recognize foreign companies and ownership of assets by such companies, hence A Trust prefers to manage trusts which hold assets via a company. Settlors are however advised to consult their own advisors, including in their countries or domicile and residence, as laws differ from country to country.
15. Shares in a Company
Based upon the settlor’s instructions to the trustees, their duties differ from trust to trust. Settlors can thus choose from a range of options. From the trustees not interfering in the affairs of the company, owned by the trust, at all to quite active duties. The trustee’s fees quoted in the fee schedule assume minimal work, additional work and/or duties will be charged for over and above those fees.
16. Company Being Formed by cclogic or their service provider.
Should we be in the process of forming a company and settling its shares in a trust then this has to be done in the correct order. First the company must be formed, then its shares can be settled into a trust, but care must be taken that the articles and memorandum of the company are in line with the wishes of the settlor before the settlement can take place as errors may be difficult to rectify.
17. Company
The company formation questionnaire should be filled in by the settlor or his representative and it forms part of these instructions.
18. Do You Require Minimum Interference by Trustees
This is the most inexpensive option. It allows the directors of the company the widest latitude within the ambit of company law.
19. Settlement in Cash (by Bank Transfer)
