An offshore trust is simply a conventional trust that is formed under the laws of an offshore jurisdiction.
Generally offshore trusts are similar in nature and effect to their onshore counterparts; they involve a settlor transferring (or 'settling') assets (the 'trust property') on the trustees to manage for the benefit of a person or class or persons (the 'beneficiaries').
However, a number of offshore jurisdictions have modified their laws to make their jurisdictions more attractive to settlors forming offshore structures as trusts.
Also, two civil jurisdictions, who are sometimes considered to be offshore, Switzerland and Liechtenstein have artificially imported the trust concept from common law jurisdictions by statute.
Read more about Offshore Trust: Rule Against Perpetuities, Management of Underlying Companies, Asset Protection, Powers of Investment, Purpose Trusts, Anachronistic Common Law Rules, Use of Offshore Trusts
Famous quotes containing the word trust:
“America is neither free nor brave, but a land of tight, iron- clanking little wills, everybody trying to put it over everybody else, and a land of men absolutely devoid of the real courage of trust, trust in life’s sacred spontaneity. They can’t trust life until they can control it.”
—D.H. (David Herbert)