What is a financial Trust?
Trust is a legal instrument that belongs to Anglo-Saxon law, and is composed of three parts: the settlor, who the account holder; the Trustee, which is the company abroad responsible for the platform and the beneficiaries, that the settlor selects at the time of contracting. Generally, the chosen beneficiaries are the children, so that the family can make a succession planning more effectively.
What are the advantages of global investing through a financial Trust?
1. Global architecture: through the Trust, you can invest in stocks, bonds, REITs, notes structures and investment funds around the world. It is even possible to port these assets if they are already in a conventional broker.
2. Succession planning: The Estate Tax is basically 40% of the total invested, in addition of the transmission costs, lawyer, etc. Through the Trust, we were able to structure a succession planning more effectively, since in the absence of the holder, the total invested becomes a life insurance policy, for example. It is important to say that the Trust is not an insurance policy, but the legal instrument allows this strategy to facilitate succession.
3. Patrimonial protection: as the Trust belongs to a different jurisdiction than the current jurisdiction, it can also be used as an asset shielding strategy. Remembering that asset shielding is only considered a crime if it aims to defraud creditors.
4. Tax advantages: as the Trust uses privileged tax regimes, such as the Cayman Islands or Puerto Rico, the investor is able to invest with various tax exemptions. For example, it is possible to buy and sell assets without paying tax, as the structure is based in these countries.