It is similar to trust in operation, but because some territories have relatively loose or special policies in the definition or law of trust, or the interests of beneficiaries can be more protected, more and more entrepreneurs choose offshore trust to achieve the financial goals of enterprises and individuals, so as to ensure that they can seek the best solution from the law.
Extended data
Offshore trust is usually created when assets are transferred to the name of the custodian (becoming an offshore trust fund). At this time, the custodian becomes the legal owner of the assets, and is responsible for managing the assets according to the terms agreed in the trust and dividing them to the beneficiaries of the offshore trust (the beneficiaries may include individuals or companies that transfer the ownership of the assets to the custodian's name).
After the property is delivered to the trust, the trustor still has the right to decide the use of the trust property, and can terminate trust deed to retrieve the trust property at any time, so as to avoid the trouble that the children squander the property after giving it to their children. Therefore, trust can be used to ensure that the assets accumulated by predecessors will not be easily wasted by future generations.
Offshore trust is an innovation of trust, which is similar to trust in operation. It refers to a trust established in a jurisdiction other than the place where the transferor of property is registered.
Due to the tax incentives and legal environment of tax havens, most offshore trusts are set up in tax havens. Offshore trust first appeared in the late 1970s in several famous tax havens in the world, such as Cayman Islands, Bermuda and Bahamas. Any form of assets can be injected into offshore trusts, including existing deposits, stocks, bonds and real estate.
Baidu Encyclopedia-Offshore Trust