Offshore Trust - Use of Offshore Trusts

Use of Offshore Trusts

Official statistics on trusts are difficult to come by as in most offshore jurisdictions (and in most onshore jurisdictions), trusts are not required to be registered.

There is a common perception that offshore trusts are predominantly used by wealthy individuals and families as part of their tax planning. This may be true, however there are also other purposes that offshore trusts are used for.

• Offshore trusts are also sometimes formed as unit trusts to operate as a mutual fund.
• Offshore trusts are often used as part of an orphan structure in capital markets or trade finance transactions.
• Pan-national non-governmental bodies are sometimes established as offshore trusts. For example, the International Cricket Council is formed in the British Virgin Islands.