Trust vs Company

Thanks to the outstanding features inherent to a trust in providing maximum security of the trust capital and its transfer to future generations, trust could become a successful competitor to off-shore controlled foreign companies with regards to preserving and investing family wealth.

The benefits of a trust in comparison to the controlled foreign company shall largely depend on how the trust is structured and who acts as trustee and protector of the trust, and might include:

  • certainty as to tax residence of the trust;
  • existence of substance at the place of activity of trustees;
  • possibility to transfer assets to a trust by any individual or corporation, not only by the settlor; 
  • flexibility in distribution of trust capital and income to beneficiaries; 
  • convenience in transfer of assets to a trust; 
  • national probate procedures are not applicable.

MP Part will advise on peculiarities, benefits and limitations of a trust in comparison to an offshore controlled company, as well as assist in making an informed choice between trust and company.