Offshore Trusts & The All-Powerful Settlor - Potential Problems & Practical Solutions

Introduction

Many practitioners will have come across the type of client who wishes to create an offshore trust or trust-like foundation, while retaining control over material decisions to do with its operation, the investment of settled assets and distributions of income and/or capital from it.

They may seek to achieve this through the reservation of specific powers to the settlor or the appointment of the settlor as protector of the trust.

The effect of such reserved powers: in terms of the integrity of the structure, its tax residence and the asset protection benefit that it can deliver, will depend on the nature and extent of the powers reserved.

The Court's decision in Mezhprom Bank v Pugachev highlights the risks associated with a protector-settlor, who is also a beneficiary and able to utilise extensive reserved powers for their own benefit.

This new virtual classroom seminar will outline the potential implications of an all-powerful settlor from a tax and non-tax perspective and outline some alternative solutions which a prospective settlor may wish to consider.

It is suitable for private client professionals working with international clients and their connected trust structures.

What You Will Learn

This live and interactive session will cover the following:

• Who is the settlor?
• Reservation of powers - looking at the totality of powers reserved, in any capacity
• Effect on the integrity of the trust - sham, ‘illusory trusts’, failure to divest oneself of the assets and thus a bare trust
• Effect on the tax residence of the trust
• The reservation of investment management powers while UK tax resident
• Why do settlors seek to reserve excessive powers and possible solutions

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.