Why make a Cyprus International trust?
Cyprus International Trust is used to manage family assets after the death of the person. This is because trusts allow the settlor to attach conditions to the asset, their use, and enjoyment as well as the time that they may be transferred. For a further look into the provisions of the Cyprus International Trust please visit this post. If you would like further background as to why make a trust please visit this publication from the Society of Trust and Estate Practitioners (STEP).
Trust Assets are outside the direct control and ownership of the settlor, nevertheless, they are held subject to the conditions of the trust. The day to day management of the trust assets falls on the trustees who follow the terms of the trust.
The joy of a gift is always for the giver. A trust ensures that the receiver of the gift utilizes it as intended. For example, you may want to help your child with tuition for college over a period of 5 years. A trust ensures that the desired assets are allocated gradually released over the period.
Although the trustees follow the rules, they can be drafted in such a way to allow for flexibility if any need arises.
A discretionary trust allows the trustee to make gifts to a stated class of beneficiaries. The trustee may adapt according to the needs of the beneficiaries.
A charitable trust is a great way to ensure that the causes you care to receive a gradual or lump sum payment after you pass away. The Cyprus International Trust Law allows the establishment of trusts to benefit charitable purposes.
A portfolio trust is a trust set-up for the sole purpose of holding a pool of assets consisting of listed securities, shares, bonds, derivatives and other financial instruments freely traded on the market. Commonly the trustee is not expected to undertake the trades and decide on the investment strategy of the trust since this is assigned to a dedicated asset manager.
A pension trust is a trust set-up for the sole purpose to collect proceeds during the working life of an individual or a group of individuals. Although the reasons behind setting up this type of trust are not vested in succession planning it is a way to ensure that the worker saves a nest egg for his retirement and future needs.
Real Estate Utilization Trust
This type of trust has as the main purpose the utilization of real estate. The trust may be used as a residence of the beneficiaries of the trust or it may collect income from the rentals and business activities conducted over the specific asset.
Islamic Law may be adopted within the provisions of the trust. This though requires careful consideration and a legal practitioner who is specifically training in this segment.
Bankruptcy Remote Trust
During the lifetime of a person, it is quite possible that he is declared bankrupt. By utilizing a trust, in good faith, any assets transferred to the trust are bankruptcy remote and cannot be a subject of any proceedings brought against the settlor.