Offshore Trust Establishment

Offshore trust, also known as overseas trust or foreign trust, generally refers to a trust established by a domestic resident principal whose daily management is conducted overseas and all or most of the trustees are not residing or habitually residing in the country.

In terms of operation, it is similar to trusts, but because specific territories have relatively loose or special policies on the definition or legal provisions of trusts, or the interests of beneficiaries can be more protected, more and more entrepreneurs choose offshore trusts to achieve their financial goals, ensuring that they can seek the best solution from the law.

Offshore trusts are typically created when assets are transferred to the name of the custodian (becoming an offshore trust fund), where the custodian becomes the legal owner of the assets and is responsible for managing them according to the terms of the trust agreement, dividing them among the beneficiaries of the offshore trust (beneficiaries may include individuals or companies transferring ownership of the assets to the custodian's name).

After the property is delivered to the trust, the principal still retains the decision-making power over the use of the trust property, terminates the trust contract at any time, retrieves the trust property, and avoids the problem of children wasting money after giving the property to their children. Therefore, trusts can be used to ensure that the assets accumulated by predecessors are not easily wasted by future generations.