Trust and Fiduciary Services. Preserving Your Wealth for Future Generations

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1 Trust and Fiduciary Services Preserving Your Wealth for Future Generations

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3 Enjoy Peace of Mind Our circumstances and needs rarely remain the same. They change and evolve throughout our lives, often out of choice, as we pursue new opportunities and goals and occasionally as a result of events that we do not anticipate or plan for. While you cannot prevent the unexpected from happening, you can take measures to ensure that you are well prepared to deal with situations that may impact your financial security and that of your family. At RBC Wealth Management, we have over 100 years experience providing tailored financial solutions designed to assist high net worth individuals protect and preserve their wealth and provide for future generations. TRUST AND FIDUCIARY SERVICES 1

4 Understanding Your Needs While people often have similar needs, the situation and circumstances surrounding those needs are almost always unique. What works well for one person, won t necessarily work for another. At RBC Wealth Management, we believe that collaboration is key to achieving the best for our clients. Working in partnership with you and your advisors, we will help you devise a plan that truly meets your financial and estate planning needs both now and in the future. Discovery Evaluating Your Unique Needs The first step in the process is to understand your unique circumstances in relation to you, your family and your wealth, exploring your current situation and future plans, as well as your aspirations and concerns. Strategy Tailoring Your Plan Having gained a thorough understanding of your situation, we will work in partnership with you and your advisors to establish a strategy designed to meet your unique requirements. This will encompass everything from the protection, preservation and investment of your wealth to plans around inheritance. Implementation Executing Your Plan With a clear strategy in place, we will liaise with our offices around the world, together with your other advisors, to implement your plan. If required, we will also introduce you to carefully selected external professionals to complement our services. Review and Management Meeting Your Changing Needs As your circumstances change over time, so will your requirements. Your relationship manager will regularly review your plan to ensure your current and evolving needs continue to be met. 2 RBC WEALTH MANAGEMENT

5 FINANCIAL AND ESTATE PLANNING By taking a proactive approach to financial and estate planning, you can feel secure knowing that you are well prepared to deal with events that can impact your business and financial interests. There are a number of scenarios that require careful planning, from managing exposure to different tax and legal regimes to safeguarding your financial and business interests in the face of uncertainty. In particular, now may be the right time to undertake planning if you: n Want to support family members but not give them direct control over valuable assets n Live in, or are connected to, countries associated with political, social or economic unrest n Are concerned about the potential imposition of exchange controls n Want to protect your wealth from potential unforeseen legal claims or liabilities n Want to protect your assets from potential claims against your estate by disgruntled heirs or those with forced heirship rights n Are sensitive to unnecessary publicity in respect of your private affairs n Want to ensure that you are not paying more income, capital gains or inheritance taxes than necessary n Want to keep the family business within the family for more than one generation n Are planning to move to another jurisdiction n Have family members who have relocated or are planning to do so n Want to fulfill philanthropic objectives in relation to your wealth n Are considering making a significant investment in another jurisdiction TRUST AND FIDUCIARY SERVICES 3

6 Finding the Right Solution Trusts and other fiduciary structures are key components of any financial and estate plan, enabling high net worth individuals and their families to preserve and protect their wealth for the benefit of future generations. At RBC Wealth Management, we offer a range of fiduciary solutions tailored to your needs and objectives. The most widely used include: Trusts A product of common law dating back to the Middle Ages, the trust has evolved into the most widely used and flexible estate planning structure for high net worth individuals. In simple terms, a trust is a legal relationship that is created when you (the settlor) transfer ownership of certain assets to another person or company (the trustee), such as RBC. The trustee then manages and administers those assets in the best interests of other persons (the beneficiaries) who may also include you. As you have separated yourself from the legal ownership of your assets, they no longer form part of your personal estate. This arrangement provides a number of benefits including greater confidentiality, asset security and perhaps an opportunity to mitigate your tax liabilities. While the trustee may be the legal owner of the assets held in trust, under law, only the beneficiaries can derive any economic benefit from them. Companies Unlike a trust, a company is an independent legal entity and can own property and transact in its own name. In estate planning, companies can either be used on their own or in conjunction with trusts or other structures. A company, similar to a trust, can hold a wide variety of assets, including residential and commercial properties, private companies, trademarks, patents and royalties, artwork, investments and bank accounts. Holding your assets in a company that is owned by a trust can provide tax advantages and may ensure that they do not form part of your estate upon your death. A key characteristic of a company is limited liability, which means that the shareholder retains the rights of ownership, but in a situation of insolvency the shareholders cannot be made personally liable for any of the debts of the company beyond the money that they have already paid for the shares. Foundations Like trusts, foundations have been used for centuries to hold and safeguard assets. Today, they are being used increasingly by families for both charitable and non-charitable purposes. Foundations bear characteristics of both a company and a trust and are particularly popular among individuals from civil law countries where the notion of separate legal and beneficial ownership, the underlying principle of the trust concept, is unfamiliar. In contrast to a trust, the foundation has a separate legal personality. It holds assets in its own name and is both the legal and beneficial owner of those assets. The benefits that a foundation offers are largely the same as those available through a trust. 4 RBC WEALTH MANAGEMENT

7 THE BENEFITS Trusts, companies and foundations, either independently or together with other solutions, can provide the following benefits: Providing for Heirs Enjoy peace of mind by making arrangements for your wealth to pass to your chosen heirs in a timely and confidential manner that is consistent with your wishes. Estate Management Free yourself of the time and many of the concerns that go with managing a large personal estate. Security Ensure that your and your family s security and your assets are not compromised by political, social or economic uncertainty. Control Retain, where appropriate, a degree of influence or control over the future distribution of your wealth for generations to come. Asset Preservation Minimize the impact that events you cannot foresee or control have on the value and structure of your estate. Tax Mitigation Preserve your wealth by legitimately structuring it in a way that means you don t pay more tax than you need to. Privacy Keep details regarding the value of your estate and perhaps the identity of your chosen heirs confidential both during your lifetime and after your death. TRUST AND FIDUCIARY SERVICES 5

8 Reasons to Select RBC Wealth Management Choosing a quality service provider is an important decision one that should be given careful consideration. Considering the responsibility that is required and the length of time that trusts and other fiduciary structures generally span, stability and experience are critical attributes. We have the financial strength to honour our commitments and a long and distinguished history of providing continuity through family generations. Relationship At RBC Wealth Management, we view strong client relationships as the cornerstone of effective financial and estate planning. To ensure that we are best-placed to meet your needs and those of your chosen beneficiaries both now and in the future, you will be appointed a principal point of contact, supported by a relationship team, who will be committed to providing the highest level of service and continuity at all times. Our People Like most businesses, we are only as good as our people. Our standing as a leading provider of trust and fiduciary services is the result of having a trust team with in-depth expertise in estate and succession planning as well as an acute awareness of related tax issues, regulatory concerns and prevailing legislation. With qualifications in the fields of law, accountancy, investments and taxation, our team of over 500 dedicated private client and corporate trust employees possess multi-jurisdictional planning experience, as well as expertise in servicing the needs of clients from common, civil and Shari a law jurisdictions. International Presence With trust offices in Bahamas, Barbados, Cayman Islands, Geneva, Guernsey, Hong Kong, Jersey, London and Singapore, we are willing and able to provide clients with greater choice than many of our competitors with respect to where they establish their fiduciary structure, and develop and implement solutions that span multiple jurisdictions. The jurisdictions in which we operate are politically and economically stable, have robust regulatory environments and infrastructures, solid judiciaries and legislation that facilitates the creation of a range of different types of structures. Strength and Stability One of the most important criteria in the selection process of a trustee is the quality of the institution. RBC is Canada s leading financial institution, employing approximately 80,000 employees across a variety of business lines, including wealth management, personal and commercial banking, corporate and investment banking, and insurance. We are one of the largest banks in the world, as measured by market capitalization, and have credit ratings that are among the highest of any major financial institution. 6 RBC WEALTH MANAGEMENT

9 Independence Unlike many other bank-owned providers of trust and fiduciary services, we adopt an open architecture philosophy, which allows our trust professionals to act independently and consider external providers alongside our suite of in-house solutions. We recognize that our duty as trustee is to act in the best interests of beneficiaries, and this can only be achieved by examining what the whole market has to offer. Global Knowledge and Expertise We believe in providing specialist expertise and advice and, as such, have structured our business in such a way that our trust professionals are free to focus exclusively on the geographical regions and markets they know best. For example, we have teams dedicated to servicing clients from the Americas, Europe, Asia, the Middle East and Africa. Flexibility We are differentiated from many of our competitors through the wide variety of assets that we hold within structures. At RBC Wealth Management, we recognize the advantages of holding a broad range of assets in trust, such as real estate, private company shares, yachts, aircraft, art and jewellery; and have the necessary expertise and experience required to manage and administer them effectively. Award-winning We are proud of our status as one of the world s most decorated trust companies, earning recognition from clients and professional advisors alike for the depth and breadth of our service offering and the professionalism of our people. In recent years, we have enjoyed a number of award successes across a range of major industry publications and professional bodies, including Euromoney, the Society of Trust and Estate Practitioners, Private Banker International, WealthBriefing, Citywealth and Private Client Practitioner. Wealth Management Solutions A relationship with RBC Wealth Management also provides you with seamless access to other areas of our expertise. In addition to trust and fiduciary services, we offer an extensive range of wealth management solutions across the world s major centres, including banking and cash management, investment solutions, custody, and credit and treasury services. TRUST AND FIDUCIARY SERVICES 7

10 Our Invitation to You To find out more about how we can help you achieve your needs, please call your Relationship Manager or speak to a member of our trust and fiduciary services team at one of the following offices: Bahamas Royal Bank of Canada Trust Company (Bahamas) Limited Lyford Cay House Western Road PO Box N-3024 Nassau, NP Bahamas Telephone: +1 (242) Facsimile: +1 (242) Geneva Roycan Trust Company S.A. Rue du Stand Geneva Switzerland Telephone: +41 (0) Facsimile: +41 (0) Jersey RBC Trust Company (International) Limited La Motte Chambers St Helier, Jersey JE1 1PB Telephone: +44 (0) Facsimile: +44 (0) Barbados Royal Bank of Canada (Caribbean) Corporation and Royal Bank of Canada Financial Corporation Chelston Park Second Floor, Building 2 Collymore Rock, St Michael Barbados Telephone: +1 (246) Facsimile: +1 (246) Guernsey RBC Trustees (Guernsey) Limited PO Box 48 Canada Court, Upland Road St Peter Port Guernsey GY1 3BQ Telephone: +44 (0) Facsimile: +44 (0) London Royal Bank of Canada Trust Corporation Limited Riverbank House 2 Swan Lane London, EC4R 3BF Telephone: +44 (0) Facsimile: +44 (0) Cayman Islands Royal Bank of Canada Trust Company (Cayman) Limited 24 Shedden Road Royal Bank House 4th Floor George Town, Grand Cayman Cayman Islands KY Telephone: +1 (345) Facsimile: +1 (345) Hong Kong Royal Bank of Canada Trust Company (Asia) Limited 17th Floor, Cheung Kong Center 2 Queen s Road Central Hong Kong Telephone: + (852) Facsimile: + (852) Singapore RBC Trust Company (Singapore) Pte. Ltd. 77 Robinson Road #18-00 Robinson 77 Singapore Telephone: + (65) Facsimile: + (65) trustinfo@rbc.com 8 RBC WEALTH MANAGEMENT

11 This publication has been issued by Royal Bank of Canada on behalf of certain RBC companies that form part of the international network of RBC Wealth Management. RBC Wealth Management offers trust and fiduciary services via the principal operating companies detailed below. Services outlined may be provided by a variety of Royal Bank of Canada subsidiaries and offices, either independently or acting together, operating in a number of different jurisdictions. You should note that the applicable regulatory regime, including any investor protection or depositor compensation arrangements, may well be different from that of your home jurisdiction. Some of the services detailed in this document are not offered in all jurisdictions and may not be available to you. You should carefully read any risk warnings or regulatory disclosures in this document or any other literature enclosed with this document or forwarded to you by Royal Bank of Canada s subsidiaries or affiliates. This document is intended as general information only and is not intended as tax, legal, investment or other professional advice. You should always obtain independent professional advice particular to your individual circumstances. The information in this document is based on sources considered reliable at the time, but no representation is made regarding its completeness or accuracy and no obligation is undertaken whatsoever to update it for any changes of law or interpretation. Royal Bank of Canada, its affiliates and subsidiaries and their officers, directors, employees and agents are not responsible for and will not be liable to you or anyone else for any damages whatsoever (including direct, indirect, incidental, special, consequential, exemplary or punitive damages) arising out of or in connection with your reliance on the document, even if the Royal Bank of Canada, its affiliates or subsidiaries or their officers, directors, employees or agents have been advised of the possibility of these damages. IRS Circular 230 Notice: To ensure compliance with requirements imposed by the Internal Revenue Service (IRS), we inform you that in compliance with the U.S. Federal Tax Regulations, unless expressly stated in writing otherwise, any discussion of tax matters contained in this communication (or any attachment hereto) is not intended or written to be used as and cannot be used as or considered to be a covered opinion or other written tax advice; and should not be relied upon by any person for the purpose of (i) avoiding any Internal Revenue Code (IRC)-related penalties that may be imposed on a taxpayer or (ii) promoting, marketing or recommending to another party any transaction or tax-related matter(s) addressed herein (or attachments hereto) for IRS audit, tax dispute or any other purpose. The addresses and main regulators of the principal RBC Wealth Management companies providing trust and fiduciary services: Royal Bank of Canada Trust Company (Bahamas) Limited: Lyford Cay House, Western Road, PO Box N-3024, Nassau, NP Bahamas: Regulated by the Central Bank of the Bahamas. Royal Bank of Canada (Caribbean) Corporation and Royal Bank of Canada Financial Corporation: Chelston Park, Second Floor, Building 2 Collymore Rock, St Michael, Barbados: Regulated by the Central Bank of Barbados. Royal Bank of Canada Trust Company (Cayman) Limited: 24 Shedden Road, Royal Bank House 4th Floor, PO Box 1586, George Town, Grand Cayman KY Cayman Islands: Regulated by the Cayman Islands Monetary Authority. Roycan Trust Company S.A.: Rue du Stand 56, 1204 Geneva, Switzerland. RBC Trustees (Guernsey) Limited: PO Box 48, Canada Court, Upland Road, St Peter Port, Guernsey GY1 3BQ, Channel Islands: Registered company number 37379: Regulated by the Jersey and Guernsey Financial Services Commissions. Royal Bank of Canada Trust Company (Asia) Limited: 17th Floor, Cheung Kong Center, 2 Queen s Road Central Hong Kong: Regulated by the Mandatory Provident Fund Schemes Authority. RBC Trust Company (International) Limited: La Motte Chambers, St Helier, Jersey JE1 1PB, Channel Islands: Registered company number 57903: Regulated by the Jersey Financial Services Commission. Royal Bank of Canada Trust Corporation Limited: Riverbank House, 2 Swan Lane, London EC4R 3BF. RBC Trust Company (Singapore) Pte. Ltd: 77 Robinson Road, #18-00 Robinson 77, Singapore : Registered company number K: Regulated by the Monetary Authority of Singapore (licence number TC ). / TM Trademark(s) of Royal Bank of Canada. Used under licence.

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