Do we really need a trust for asset protection ?

Status
Not open for further replies.
Do they exists in this niche 😀

It honestly feels like a fabricated article made just for the purpose, and it⁣ doesn’t seem to reflect the real world at all.

If you’ve got £3.3 million in⁢ a bank account and you’re setting up a trust in Mauritius, then being asked to︀ transfer the money to that trust, the first thing I’d say is, 'Sure, that’s fine.'︁ But first, I’d bring my family over, take a vacation, and then have a meeting︂ where I could transfer the funds in person if I felt comfortable with the situation.︃

Setting up a trust in Mauritius over email and then transferring money via email? That︄ just screams stupidity. You’re basically asking for every con artist and scammer to come out︅ of the woodwork and embrace you.

I thought people were smarter than this, even in︆ developing countries.

That being said, we already have plenty of topics about trusts here. They’re︇ like dinosaurs from the past that have no place in today’s world anymore. The OECD,︈ the U.S., and the EU have completely ruined this option. Maybe if you live in︉ Somalia, you could still use something like that, but I’d rather bet my money on︊ a bunker with 50 armed soldiers.
 
It's not a "fabricated‍ article", there are lots of articles about this case. In Mauritius, banks can use email⁠ for cash transfers or stocks trading remotely for instance. I'm not surprised it can happen.⁤
 
Foundation is different than Trust that is why it works in Europe, but you may‌ be right saying so.
 
The rule of thumb is that you use a foundation in civil law jurisdictions and‌ a trust in common law jurisdictions.

Keep in mind that some common law jurisdictions recognise‍ the trust. Lots of common law jurisdictions can work with a foundation as its an⁠ entity in itself. Google is your friend in this case, just google "does jurisdiction X⁤ work with a trust/foundation" will give you enough links to familiarise yourself.

Never forget that⁣ whatever concept you choose to also look at where the beneficiaries reside. If you have⁢ a trust setup and beneficiaries reside in a common law jurisdiction then it can lead︀ to issues (legal, tax etc.). Be sure to discuss this with a lawyer familiar with︁ the concepts and the jurisdictions involved.
 
This looks like more of an⁠ issue with fraud/impersonation by a "hacker". Something similar often happens in the corporate world where⁤ company email accounts get compromised and then they try to redirect payments to fraudulent accounts⁣ or they send out fake invoices with fraudulent account details
 
Insertion of a trust protector is the key to maintaining control and blocking the nominal‌ trustee from dealing with the trust res.
 
how does it work and‌ what is a "trust Protector" ?
 
In modern trusts a trust protector keeps an eye on the objectives of a trust.‌

Traditionally you have the “settlor”, “trustee”, “beneficiary” roles in a trust. Strict separation of those‍ helps in avoiding full transparent treatment. The challenge then arises that you don’t own anything⁠ anymore and the trustees have ultimate powers only limited by the trust instrument.

Adding a⁤ protector to the traditional three roles means that there is an extra pair of eyes⁣ controlling the trustee. “As legal frameworks grow more intricate, a trust protector ensures the settlor’s⁢ intentions are upheld, adapting to unforeseen events or legal changes. They provide peace of mind︀ by overseeing trustee actions without interfering in day-to-day operations.”

It goes too far to copy︁ paste everything you can find about trust protectors and the above summarizes it pretty much.︂ If you google “what is the role of a protector in a trust” you get︃ enough information to occupy your for a couple of hours.
 
As long as‍ you have other people managing your business, there will always be a theoretical risk that⁠ they could collude to cheat you. It all comes down to risk assessment and weighing⁤ that against the potential gains.
 
Personally, I⁠ have a dislike of trustcos, they have a reputation for charging high fees and maybe⁤ worse. They seem to be a trap for the unwary since trustees are not limited⁣ to trustcos.
 
For the trust in itself (its a basically a written contract) you dont need‍ a trustco. Depending on the complexity you will however end up hiring people which eventually⁠ ends up in creating your own trustco, or what people in such a situation prefer,⁤ a family office 🙂
 
The issue with not giving away control is that the trust‍ itself can be set aside. Also in the USA. To exercise as much control as⁠ possible a family office could be a solution. Via a FO council you have an⁤ oversight body. Effective control lies than at directors level in the FO. The trust itself⁣ can then not be treated transparent.

The above is extremely simplified. There is a lot⁢ more to it..
 
Status
Not open for further replies.

JohnnyDoe.is is an uncensored discussion forum
focused on free speech,
independent thinking, and controversial ideas.
Everyone is responsible for their own words.

Quick Navigation

User Menu