The TCI law relating to trusts is the Trusts Ordinance of 1990 ("the Ordinance"). 

The Ordinance does not codify the form that a trust may take but instead seeks to provide a foundation without limiting the ability of practitioners to tailor Declarations and Indentures of Trust so as to achieve the client specific objectives.

Finbar F. Dempsey & Company has more than 30 years of experience in the field and is well placed to provide expert, professional advice and assistance relative to drafting, structuring and managing TCI trusts.  We review each situation individually and, where the effective settlor or prospective beneficiary is resident outside TCI, work with the clients' onshore advisors to ensure that the interests of the relevant client are protected.  The firm also provides advice and assistance in relation to existing trust structures with an emphasis on problem resolution and and can refer clients to practitioners in the US, Canada and Europe with relevant experience, as appropriate. 

In recent years the use of trusts as tax-planning vehicles has been somewhat complicated by the implementation of legislation in developed on-shore jurisdictions designed specifically to combat the flight of capital to offshore jurisdictions.  When contemplating the use of trusts for the purpose of minimizing taxes it is imperative that competent advices are received from attorneys and/or licensed trustees in both the onshore and offshore jurisdictions. 

Standard objectives of TCI Trusts include:

• Reduction and/or indefinite deferral of inheritance and capital gains taxes

• Asset protection and preservation

• Orderly and private transfer of assets outside of Probate/Administration upon death

• Tax deferral and compounding in certain circumstances

• Obtaining tax write-offs by the use of charitable remainder trusts

Interesting features of TCI trusts legislation include:

• That they may be of perpetual duration thus avoiding the unnecessary complications relating to the rule against perpetuities;
  

• That the legislation makes specific reference to the use of a Protector or individual with the power to veto decisions of the Trustee(s);

Members of the firm are extremely conversant with TCI trust law and have particular expertise in structuring asset protection, charitable remainder trusts and family trust structures. 

If you are interested in exploring the possibilities and protections afforded by TCI trusts contact us and we will be happy to email our introductory information material which deals with the topic in more depth.