Trust establishment
Trusts either hold assets within the trust itself or through an underlying vehicle. Individuals and families use them to protect their assets and mitigate tax liabilities. The most common scenarios are as follows:
Preservation of family wealth
In some situations, the split of a family's wealth into tranches (for instance, to family members) may be wholly inappropriate. By settling the assets into a trust, it may be possible for the trustees to exercise discretion and allow beneficiaries to enjoy those assets without ever having to pass direct ownership over to other members of the family.
Asset protection
In situations where there may be a possibility of political or social unrest, having assets contained within a trust structure may assist the individual when it comes to disclosing details of their assets.
Forced heirship
In some countries, the laws of that country determine which assets of a person's estate must be left to whom, and in what proportion. Where the existence of forced heirship is seen as being contrary to a person's wishes, the transfer of assets into a Jersey trust may be of distinct advantage as assets which have been transferred become the legal ownership of the trustee and not those of the settlor. In this way, the rules of forced heirship may legally, in Jersey at least, be avoided.
Emigration
Depending on the intended choice of country that a person decides to emigrate to, and the law which exists in that country, it may be possible before emigration for a person to establish a trust in order to take advantage of tax and/or exchange controls which may exist in the chosen country. The establishment of the trust may allow the person emigrating greater flexibility in managing their assets.