What risks should be paid attention to when setting up an offshore trust?

Offshore trust refers to the trust established in offshore areas. It is similar to trust in operation, but because there are relatively loose or special policies in the definition or law of trust in specific regions, or the interests of beneficiaries can be more protected. Different offshore centers have different laws and regulations, which will affect the effectiveness of offshore trusts and the potential risks of their protection functions. The three biggest potential risks are creditors, legal heirs and spouses. Everyone's actual situation is different. Consulting professionals can avoid potential risks more effectively, and choosing appropriate offshore trust places can achieve the purpose of connecting trusts more effectively.

The difference between offshore trust and family trust;

1. Offshore trust refers to the trust established in the offshore field. It is similar to trust in operation, but because there are relatively loose or special policies in the definition or law of trust in specific regions, or the interests of beneficiaries can be more protected.

2. Family trust is a kind of property management method that trust institutions are entrusted by individuals or families to manage and dispose of family property on their behalf, so as to achieve the goal of wealth planning and inheritance for the rich. In family trust, the ownership of assets and the right to income are separated. Once the rich entrust the assets to the trust company, the ownership of the assets will no longer belong to him, but the corresponding income will still be collected and distributed according to his wishes. If the rich divorce, property division, accidental death or expropriation, the money will exist independently and will not be affected.

Tips: The above information is for reference only.

Reply time: February 2022-17. Please refer to the latest business changes announced by Ping An Bank in official website.