Cyprus International Trusts 2014
Traditionally a means of protecting family wealth through the generations, trusts have perhaps in recent times become more familiar as vehicles for tax planning and asset protection because of their adaptability and convenience in effecting complicated forms of settlement. Today trusts are mainly used for wealth management and asset protection. Trusts can be established in many forms and can vary in complexity.
A trust is the relationship which arises wherever a person, being either an individual or a company, called the settlor, transfers the legal title of certain of its property, called the trust fund, to another person called the trustee, who in turn expressly agrees to hold the said property in his/her name for the benefit of some person(s), called the beneficiary(ies), in such a way that the real benefit of the property accrues to the beneficiary(ies). The property can include, inter alia, movable and immovable property, shares or cash anywhere in the world.
The legal title to the trust property is vested in the trustee by its previous owner, called the settlor. The trust property is managed by the trustee in accordance with the instructions of the settlor. These instructions will usually be written and expressed in a trust deed, called the trust instrument. The property is legally held and registered as owned by the trustee and the trustee is under a duty enforceable by the Courts, to hold that property for the benefit of the beneficiary(ies).
For a trust to be valid three certainties must be present:
• Certainty of intention – the settlor must show an intention to create a trust;
• Certainty of subject matter – the trust property must be certain;
• Certainty of objects: the beneficiaries – the trust must be for ascertainable beneficiaries.
To read the full article from Mr. Martinos Typographos please follow the link below