AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS

Transcription

1 AMICORP GROUP COMPANY AND ENTITY ADMINISTRATION SERVICES, TRUST AND FOUNDATION SERVICES, FINANCIAL SUPPORT SERVICES, OUTSOURCING SERVICES AND FUND ADMINISTRATION TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS

2 2 AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS

3 AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS 1

4 TABLE OF CONTENTS 03 ABOUT THE COMPANY 04 OUR ESTATE PLANNING PRODUCTS 04 AMICORP S TRUST JURISDICTIONS 04 THE BAHAMAS 04 BARBADOS 05 BRITISH VIRGIN ISLANDS (BVI) 06 CAYMAN ISLANDS 06 CURAÇAO 07 INDIA 08 MALTA 09 MAURITRIUS 10 THE NETHERLANDS 11 NEW ZEALAND 12 SINGAPORE 13 SWITZERLAND 13 THE UNITED KINGDOM 14 UNITED STATES (US) 16 GLOBAL LOCATIONS & NETWORK 20 BROCHURE: TERMS OF USE 2 AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS

5 ABOUT THE COMPANY Amicorp Group is an independent global service provider of a broad range of assurance, administrative, legal, corporate secretarial and support services. We provide services to a range of mostly corporate, but sometimes also highnet-worth clients around the world. We ensure that the entities managed by us or that are domiciled with Amicorp are fully compliant both in the jurisdiction where they are established, and in the jurisdiction(s) where their Ultimate Beneficiaries (UBO s) are tax residents. We have focused on emerging markets since we were established in 1992, we strive to be the best in these markets as well as other markets where we are active. We aim to provide a safe and stable working environment for our employees, we promote environmental consciousness, and contribute positively to the communities in which we are active; we are also soundly profitable. One of the top ten trust companies in the world We are proud to have built our global team of 900+ specialists who contribute their individual talents to Amicorp s broad range of expertise and experience. Our professionals include attorneys, certified public accountants and bankers many of whom are members of national and international fiscal and legal bar associations. They implement creative, innovative, strategic and compliant corporate solutions to meet the challenges of today s complex international business environment SPECIALISTS , COUNTRIES ENTITIES OFFICES For more information about Amicorp Group please visit AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS 3

6 OUR ESTATE PLANNING PRODUCTS Amicorp s broad range of estate planning products are designed to satisfy high-net-worth individuals seeking to establish a succession plan, while simultaneously providing tax minimization or tax deferral arrangements for individuals and corporations alike. Amicorp proactively develops new methods and solutions for clients to minimize the impact of changing tax legislation. Amicorp s solution-driven focus results in a continually evolving and diversified range of products. Amicorp continues to combine civil law entities with common law trusts to produce structures with surprising benefits, not only with respect to tax minimization but also with regard to the liberalization of control rights, to provide enhanced client management of the assets contributed. Amicorp does not provide legal or tax consulting or asset management services and/or advice. Potential clients are advised to obtain legal, tax (or asset management) advice in each jurisdiction where they will be active. Amicorp regularly refers to and liaises with both legal and tax experts in all our operation jurisdictions. For more information regarding Amicorp s trust, succession and estate planning products, please contact your nearest Amicorp Group representative. Further contact details are available at Amicorp s website: AMICORP S TRUST JURISDICTIONS The Bahamas The Bahamas is ideally positioned as a leading international financial center, with the existence of a highly skilled professional talent pool, legislation conducive to business, a risk based regulatory environment, and systems for the prevention and detection of money laundering and financing of terrorism. The depth and quality of financial services institutions is complemented by the provision of a tax neutral platform for all business activity; there are no income, inheritance, and payroll taxes. It is also a country committed to its democratic traditions, fiscal prudence, and a strong public-private sector partnership. The Bahamas is OECD white-listed and is a FATF-recognized jurisdiction with respect to KYC/AML/FATF standards. Amicorp in The Bahamas Amicorp Bahamas Management Limited (Amicorp Bahamas) is the premier provider of corporate services to international clients. We are devoted to providing high-class service to our clients and demonstrating our unwavering commitment to efficiency and reliability, developing a longstanding relationship with our clients based on trust and confidence. Our trust services include establishing and maintaining the trust and recommending ownership structures for the trust and assisting with creation and management of same. Bahamian Private Trust Company (PTC) We provide a variety of services including: Establishing and maintaining the PTC; Acting as the PTC s registered representative; Acting as the Bahamian agent coordinating provision of a director or corporate secretary; Providing full accounting and corporate services; Recommending ownership structures for the PTC and assisting with creation and management of same; and Documentation preparation and records maintenance. Barbados Barbados has earned its reputation as an attractive, sophisticated and reputable jurisdiction for trusts and companies. Barbados is one of Amicorp s newer jurisdictions in this service area. Barbados offers several features that draw attention from international investors, among which are: Barbados does not appear on the OECD list of uncooperative tax havens; A growing network of double taxation agreements (DTAs), most notably with Venezuela, Mexico, Canada and China; Depending on the type of trust used and the overall structuring, international clients may enjoy attractive asset protection benefits and anti-forced heirship provisions; and Trust income is generally not taxable if there are non- Barbados settlors and beneficiaries. Amicorp in Barbados Amicorp is licensed to operate as a bank and a trust company and is supervised by the Central Bank of Barbados. Amicorp offers two kinds of trusts: An International Trust, governed by the International Trusts Act Cap ( ITA ). A Licensed Trustee Trust, governed by the International Financial Services Act Cap ( IFSA ). 4 AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS

7 Additionally, Amicorp recognized the need for an economical alternative to the traditional company and trust structures most commonly used for asset protection and estate planning purposes. In response, Amicorp has developed the Pooled Omnibus Investment Trust (POINT). The International Trust (ITA) The International Trust offers strong asset protection provisions as well as increased protection against forced heirship rules and non-recognition of foreign judgments. The perpetuity period is 100 years and income may be accumulated for the entire duration. The rule against perpetuities does not apply. The ITA also permits purpose trusts and charitable trusts with unlimited perpetuity. The Licensed Trustee Trust (IFSA) The Licensed Trustee Trust offers exemption from all Barbados taxes, duties and exchange control requirements. There are no registration or filing requirements and no restrictions on accumulating income. Income can be accumulated for the duration of the trust, which is a maximum of 80 years. The Pooled Omnibus Investment Trust (POINT) This product uses Barbados trusts and segregated cell companies (SCC). POINT is useful for clients who need simple and cost effective solutions for less complex assets such as bank accounts or passive investment holdings. The SCC can create and use more than one cell, yet each single cell is a legal entity. This means that income, expenses, assets and liabilities, and activities of a single cell are accounted for by only that cell that is, each cell is completely segregated. British Virgin Islands (BVI) The BVI s position as a popular international financial center (IFC) offers distinct advantages over traditional onshore trusts. In particular, IFCs tend to have more cutting-edge trust laws. Features of IFC trust law may include: Longer perpetuity periods; Specific avoidance of forced heirship conditions; Asset protection provisions; and Special kinds of trusts, such as purpose trusts. Amicorp in BVI Amicorp regularly establishes BVI trusts for its clients with a licensed BVI trustee company whose registered office is in the BVI. In addition to standard BVI discretionary trusts, Amicorp also offers the BVI VISTA trust. BVI Trusts In addition to asset protection benefits, BVI trust legislation includes: Anti-forced heirship provisions; Legal acknowledgement of the position and power of the protector; and Extensive trust administration provisions and provision for broad investment powers for the trustee. Standard BVI trusts have a perpetuity period of 100 years. However, charitable and non-charitable purpose trusts may exist without a perpetuity limitation. The BVI VISTA Trust These trusts are established under the Virgin Islands Special Trusts Act of 2003 (VISTA). A VISTA trust provides special trust powers that permit an underlying BVI international business company (known as a BVIBC) to be managed by its directors. This allows the directors to manage the trust without the interference of a trustee, when the trustee acts as sole shareholder of the BVIBC. Occasionally, the settlor (or his nominee) may act as director of the BVIBC. In such a case, the settlor may retain control of the trust s assets in (or held under) the BVIBC without invalidating the trust. A Common VISTA Trust Structure A common structure employing a VISTA trust must have the VISTA trust s trustee hold the shares of a BVIBC (in trust). The BVIBC would then hold shares of a lower tier active foreign trading company, which might be based in the settlor s home country. Pursuant to the non-intervention rules of the VISTA trust, the settlor and his family can continue as directors of the operating company, managing it as they determine, without the intervention of the trustee. Directors nominated by the settlor usually act as directors of the BVIBC. The VISTA trustee cannot remove these directors, except under specifically defined circumstances described under VISTA s Office of Director rules. The VISTA trusts are especially useful where the underlying assets to be held by the BVI company in the trust are of specific strategic significance to the family. This may apply to long established family companies. Where the assets or asset classes held by the BVI company in trust are viewed as risky or unconventional, VISTA can provide comfort to trustees by altering their fiduciary responsibility and duty of care in relation to the BVI company shares. AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS 5

8 Cayman Islands Cayman Islands trusts offer several unique advantages: Cayman Islands trusts have a perpetuity period of 150 years. This presents excellent succession planning opportunities for clients concerned about 3rd and 4th generation family planning. A special type of purpose trust called the Special Trusts (Alternative Regime) Law (or STAR) trust can be established. This special flexible breed of trust is exempt from perpetuity periods and can be used for the benefit of persons as well as charitable or non-charitable purposes. Settlors have the power to make investment decisions, and beneficiaries can even be denied enforcement rights. This effectively excludes a potential beneficiary entitlement to receive any information or accounts concerning the STAR trust or indeed, even being notified that a trust exists. Amicorp s dedicated trust and trustee services office in the Cayman Islands can assist clients in the establishment of both STAR and non-star trusts. Curaçao In October 2011, Curaçao introduced legislation for Anglo-Saxon type trusts. Established by notarial deed and with a resident Curaçao trustee, the Curaçao trust can be structured for use by non-residents for tax, succession or estate planning purposes. Such a Trust structure offers the advantage of not incurring Curaçao income, gift, dividend or inheritance tax. retain full control over their estates assets until their death. Unlike the trust, an SPF is an incorporated entity. The SPF, along with the names of the directors of its governing board, is registered with the Curaçao Chamber of Commerce. The beneficiaries need not be registered or appointed when the SPF is incorporated. In fact, there is no requirement to notify beneficiaries of their appointment as a beneficiary. As a legal entity, the SPF can own assets in its own name and enforce ownership rights (trusts have assets registered in the name of the trustee). The founder releases legal and beneficial ownership of any assets contributed to the SPF but retains control of these assets, directly or indirectly. The founder can have further authority to appoint the directors and can even be a director himself. The delegation of management powers are also permitted, if provided for in the Articles of Association of the SPF. Assets contributed to an SPF are tax exempt in Curaçao, provided they are contributed by a non-resident. Further, no income tax applies to profits except where revenues are derived from commercial activities conducted directly by the SPF itself. However, the SPF can hold the shares of a commercial enterprise without any such penalty. Distributions to beneficiaries from an SPF are also exempt from withholding taxes. With the 2011 Tax Bill, a SPF can now also elect to pay an effective 10% tax where desirable. A Curaçao trust is not subject to Curaçao tax if no business is conducted. Alternately, a Curaçao Trust could elect to be taxed at an effective 10% rate. Amicorp in Curaçao With a strong presence in Curaçao, Amicorp offers clients access to an extensive, fast growing network of offices, with services at the forefront of tax planning innovation and the finest, customdesigned solutions. With a deep, intrinsic knowledge of the Curaçao law and tax system, Amicorp assists clients with establishing a highly popular estate planning product: the Private Foundation or Stichting Particulier Fonds (SPF). The Private Foundation or Stichting Particulier Fonds (SPF) The SPF is a civil law alternative to the common law trust for clients who require simple succession planning and/or wish to 6 AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS

9 India Amicorp in India Amicorp Trustees India (ATIPL) specializes in onshore estate and succession planning services for Indian residents, NRIs (non-resident Indians) and PIO/OCI card holders. We have the expertise to provide personalized structured solutions for Estate and Succession planning for multiple families i.e. joint and nuclear families, family businesses and individuals in India. Through estate planning you can determine how to handle the management of your assets for your own benefit during your lifetime or to fence in the assets for the benefit of your spouse and/or children, and you can plan how to distribute your assets after your death. ATIPL s services are administered through banks (private banks), investment boutiques and family offices. The services are aimed at high-net-worth individuals, entrepreneurs and family businesses and focus on asset protection, business and family succession and estate planning, thereby planning for unforeseen eventualities. We engage in the effective management and administration of assets of family members with different residential status, protecting wealth from personal and legal risks. We offer inheritance and retirement planning, generation skipping and distribution of assets as per the client s wish and not as per the personal law. ATIPL s comprehensive range of services covers each structure completely - trust formation, appointment as trustee, management trustee or trust administration, drafting and execution of wills, executorship and custodian services, creation of efficient succession structures, estate planning and inter-generational wealth transfer including administration of private family trusts under one legal structure. We establish foreign trusts or private foundations for Indian residents and NRIs for estate and investment planning purposes (related to the RBI liberalized remittance scheme for individuals). Jurisdictions often used for the Indian market are Singapore, the United Kingdom, the Netherlands, Cyprus, Mauritius, Switzerland, Luxembourg, Malta, Spain, the UAE, the BVI, Cayman Islands, New Zealand, Hong Kong and the United States. AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS 7

10 Malta Malta has ratified The Hague Convention of the Law Applicable to Trusts and on their Recognition. Therefore, Malta recognizes trusts whose proper law is not Maltese law. Being a civil law jurisdiction, Malta regulates trusts under its national laws, which permits residents and non-residents alike to set up trusts according to the particular needs of their structures. This has put Malta under the spotlight as it manages to prove that the flexible Anglo-Saxon trust concept is not incompatible with civil law. Therefore Malta comes forward as an ideal jurisdiction to attract trust situations from any part of the world. The fact that Malta is a European Union member has the additional advantage of disassociating the trust structure from the tax avoidance connotations which are usually attributed to trust structures in offshore jurisdictions. Amicorp in Malta Amicorp s presence in Malta provides international clients with access to highly efficient business possibilities in a European Union jurisdiction. Trusts Maltese law considers the trust an example of a fiduciary relationship between the settlor and the trustee who shall act in terms of the trust deed. The trustee is considered the legal owner of the assets that previously belonged to the settlor, for the benefit of the beneficiaries. Due to this fiduciary nature of trusts, a trustee must be licensed to act as such in terms of the Trusts and Trustees Act, except in certain limited cases provided by law. Salient features of Maltese trust law: The perpetuity period for Maltese trusts is 100 years; The settlor may be a beneficiary under the trust; Powers of the trustee are wide and flexible; The office of the protector is allowed for; and Forced heirship provisions are excluded. Foundations A foundation is an organization that has a separate legal personality consisting of a universality of items (the foundation assets) that is constituted in writing by the founders before a notary. The assets and liabilities are separate from those of the founders, administrators and any beneficiaries. Foundations may be established for the private benefit of persons and for a lawful purpose. As in the case of trusts, the foundation s administrators have a fiduciary relationship with the beneficiaries. In spite of the general prohibition on Maltese foundations from carrying out commercial activities, a foundation may own commercial property such as shares in a company, a trademark or a franchise as long as it receives passive income. Maltese foundations may also be converted into other corporate entities as well as a trust, therefore providing versatility to the founders to be able to adapt according to the needs and situation that may change during the life of the foundation. Tax Treatment of Trusts & Foundations Both trusts and foundations may be transparent for income tax purposes; that is, the beneficiaries will be deemed to have received the income derived by the trust or foundation personally. Due to Malta s domestic taxation system (based on taxation of residence and domicile for universal taxation rights) this may result in a zero tax liability in Malta. Alternatively, at the setting up of the trust or foundation, the trustees or administrators respectively, may decide that the foundation is to be taxed in the same manner as a company and is entitled to the same tax accounting and refunds that have been elaborated previously. 8 AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS

11 Mauritius Trust entities in Mauritius can be established as resident and non-resident trusts for succession planning, tax planning and asset protection. Mauritius offers various types of trusts and services to cater for the needs of international private clients which include: discretionary trust; fixed income trust; protective trust; charitable trust; bare trust; purpose trusts; and unit trusts. Mauritius offers an ideal legislative framework for the creation of trusts and their administration. Trusts are governed by the Mauritius Trusts Act of 2001, which provides a unified law for residents and non-residents. The key features of Mauritius trusts include: No registration or filing requirements; Anti-avoidance provisions in relation to forced heirship rules; Migration of the trust is possible; Corporate trustee is regulated by the Financial Services Commission; Extensive powers may be given to the protector; Possibility to split trusteeship into a custodian and a managing trustee; Maximum duration of 99 years; A resident trust may benefit from the network of double tax treaties; Non-resident trusts are tax-exempt; and Trusts may apply for a Category 1 Global Business License ( GBC1 ) to benefit from the extensive double taxation agreements available. Taxation of Trusts A resident trust is liable to income tax at the rate of 15%. However, such trust will be entitled to the presumed foreign tax credit of the higher rate suffered or 80% of its chargeable income, or may deposit a declaration of non-residence within 3 months after the expiry of the income year, it will then be exempt from income tax. Mauritius is also very popular for the use of Private Trust Companies ( PTC ) and the Settlor may act as the board member of the PTC. The PTC may in turn be held by a Mauritius Purpose Trust which would be very effective for tax planning. AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS 9

12 The Netherlands The use of a Netherlands foundation is widely recognized for estate planning purposes. As an estate planning vehicle, a Netherlands foundation offers several, powerful advantages, among which are: An estate, which has been transferred to a foundation, will not be divided among the heirs upon the death of the founder; Although the founder may hold the economic rights, the legal rights will remain with the Foundation. For example, an art collection, real estate and investment portfolios remain intact; The founder can ensure the continuity of the estate by appointing a trustee as a board member in the foundation or a successor member upon the founder s death; Economic rights likewise can be transferred accordingly; For the purpose of this structure, a foundation/stak has no shareholders; and The legal chain of ownership ends with the foundation STAK. However, the economic chain continues. The rules governing the economic rights are constituted under the administrative or trust conditions set out for a STAK. The original shareholder can continue to retain control over the underlying company, acting as a member of the board of the STAK. They may optionally appoint a trusted person to the position of director. Some Amicorp clients elect to transfer the ownership of the deposit certificates to the trustee of a trust. This can provide additional tax minimization and succession planning benefits. Amicorp in the Netherlands Amicorp s presence in the Netherlands allows clients access to professionals well-versed with setting up the Netherlands Foundation, structured as a Stichting Administratiekantoor (STAK). The Netherlands Foundation or Stichting Administratiekantoor (STAK) The Netherlands foundation, structured as a Stichting Administratiekantoor (STAK), offers beneficial estate planning opportunities. The STAK provides a compliant civil law solution that separates legal ownership from economic ownership. Such a separation of rights is usually provided for only in common law trusts. For example: Shares of a family owned (group) company can be transferred to the STAK; This will result in the STAK having all shareholder powers including legal ownership; In exchange for the shares, the STAK will issue certificates of shares (or certificates of depository receipt) to the original shareholder(s); These certificates reflect the economic rights of the assets held by the foundation; and As such, they confer the full economic benefit of the assets to the certificate holders. 10 AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS

13 New Zealand New Zealand s international tax and company laws (including limited liability partnerships) make it an attractive jurisdiction for foreigners seeking effective tax and asset planning options. New Zealand offers: The legitimacy of Organization for Economic Co-operation and Development (OECD) membership; An international tax regime that taxes only income and profits derived by New Zealand tax residents or on income sourced from New Zealand; and A large network of double tax agreements (DTAs) and limited disclosure requirements. Amicorp in New Zealand Amicorp s dedicated trust and trustee services office in Auckland employs New Zealand trust lawyers to assist clients in establishing and administrating New Zealand trusts (NZ trusts) and other flexible investment and trading arrangements. In addition, Amicorp s dedicated trustee company in New Zealand provides trustee services to NZ trusts. Benefits of the New Zealand Foreign Trust Tax benefits A New Zealand foreign trust is not taxed in New Zealand on any income if it has non-resident settlors and there is no New Zealand source income. There is also no capital gains tax imposed, regardless of whether a trust s assets are located inside or outside New Zealand. Reporting requirements The reporting requirements include obtaining an Inland Revenue Department number and an initial disclosure statement made to the New Zealand tax authorities, which provides only basic information about the trust. No settler or beneficiary information is provided, unless the settler is a resident in Australia. The perpetuity period for NZ trusts is 80 years. Appointing advisory or management trustees Through the appointment of advisory or management trustees, a client or fiduciary organization can limit a NZ trustee s specific role with regard to the investment management of the trust s assets. Liability exemption New Zealand law specifically exempts the responsible or custodian trustee from liability for following directions issued by an advisory or managing trustee. Regulatory supervision and low capitalization requirements New Zealand private trustee companies (NZ PTCs) are also free from regulatory supervision. The NZ PTC has low capitalization requirements and enjoys the advantages of not being blacklisted, which is often an impediment to structuring with an offshore PTC. Reduced withholding taxes The NZ PTC can enjoy the planning benefits of New Zealand s large network of double income tax treaties that reduce withholding taxes on dividends received from foreign jurisdictions. New Zealand Private Trustee Company (PTC) Easy to establish, the PTC can act as a trustee of a foreign trust when clients prefer not to engage the services of a professional trustee company or there are complex assets or family businesses to manage. AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS 11

14 Singapore Singapore is a jurisdiction steadily increasing in popularity among international investors. This growing attraction can be attributed to several features, including Singapore s: Presence on the OECD white list and its commitment to complying with OECD guidelines; Stable political structure, well-established legal system with a foundation in English Common Law, and strong economy; and Infrastructure and environment, which is inherently probusiness. Amicorp in Singapore In Singapore, professional trustees are licensed and subject to regulatory oversight by the Monetary Authority. Amicorp is a licensed trustee and has a dedicated trust team providing the full range of trustee services in Singapore. Every client has unique requirements and, in keeping with this, Amicorp s key focus is to create individualized solutions. To achieve this, we actively gain an understanding of our client s individual circumstances and their desires and goals (for themselves and their family). Benefits of Singapore s Trust Law Powers of investment Under Singapore trust law, settlors can reserve the powers of investment to themselves. As a result, a client can retain an active role in managing investments. Trustee supervision Singapore trusts also allow the appointment of a protector (who can also be the client) who can supervise the activities of the trustees in certain areas. Forced heirship In certain civil jurisdictions, forced heirship is a common issue. Such issues can be addressed under Singapore trust law, which has anti-forced heirship provisions. Registration Singapore trusts do not require formal registration. There are strict banking secrecy laws. Tax exemption on foreign trusts Trusts where the settlor and beneficiaries are neither citizens of Singapore nor resident in Singapore can qualify as a foreign trust under Singapore tax law. This offers tax exemption in Singapore on a wide range of trust income (including most types of income or gains from financial instruments). Further, beneficiaries will not be taxed in Singapore upon the receipt of such exempt income. Double taxation agreements Trust structures involving underlying entities established in other jurisdictions may also benefit from the extensive double taxation agreements that Singapore has entered into with other countries. Private Trustee Companies (PTCs) In Singapore, Private Trustee Companies (PTCs) may be established and remain free from Singapore license requirements. However, there are certain conditions that a PTC must satisfy, for example a PTC should act only as trustee to connected family members. 12 AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS

15 Switzerland Switzerland does not have its own trust law and therefore, a Swiss trust does not exist. However, Switzerland ratified The Hague Convention on the Law Applicable to Trusts and their recognition, effective July 1, This means that Switzerland recognizes the existence of trusts and trust law. Swiss courts now respect the choice of law under which any trust has been established. As a result, trust laws can be enforced in Switzerland and usually under the trust s governing law. Amicorp in Switzerland Amicorp has a dedicated trust team in Zurich and offers Swiss trustee services to clients seeking exemplary professionalism. This is particularly effective if assets are located in Switzerland, as it enables seamless coordination between the trustee and the asset management service provider within a single time zone and jurisdiction. While requests to take over trusteeship of existing trusts, or to establish new trusts, with Swiss trustees are most commonly received for trusts from many governing law jurisdictions, Amicorp specializes in acting as trustee for UK trusts. As an alternative to acting as a Swiss trustee, Amicorp can assist clients with establishing dedicated Swiss private trustee companies (PTCs) to act as trustees instead. The United Kingdom Considered the birthplace of trust law, the United Kingdom (UK) offers trusts that are governed by solid, tried and tested trust legislation. The UK trust is often used by traditionalists and others seeking to avoid the stigmas and/or potential tax inquiries associated with using a trust in an offshore jurisdiction. UK trusts can hold non-uk assets without being subject to any UK taxes if they are non-resident trusts. They also have the advantage of being governed by the laws of an OECD member country. A UK non-resident trust is traditionally discretionary and preferably irrevocable by its terms. The settlor and beneficiaries must not be UK domiciled or UK resident. Similarly, all trust assets (including bank accounts) should be non-uk located assets. The trustee should be a non-uk resident (e.g., a NZ PTC or Swiss trustee). However, a UK co-trustee can also be appointed, if desired. A UK trust with Swiss trustee that qualifies as non-resident has no reporting requirements to the UK Inland Revenue. All contributions made to the trust, all income generated by the trust s assets and all distributions to the beneficiaries are not subject to UK taxes. The Perpetuities and Accumulations Act 2009, extended the perpetuity period of UK Trusts to 125 years and abolished previous restrictions on accumulation periods. These restrictions, however, still apply to charitable trusts. AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS 13

16 United States Although there is no US national trust, several of its states have developed some highly regarded trust products. Among those are the state of Delaware, which offers both statutory trusts and common law trusts. These can be used as excellent financial and estate planning vehicles as well as for the holding of underlying business entities. These trusts may be easily designed as either foreign or domestic trusts for US income tax purposes. Amicorp in the United States Amicorp currently offers services related to Delaware Statutory Trusts only through an appointment as trustee or co-trustee of Delaware statutory trusts. Amicorp offers its services as trustee or co-trustee over the full range of Delaware trusts, both statutory and common law. Additionally, Amicorp offers Florida land trusts. Key Benefits of a Delaware Trust Delaware does not impose an income tax on a trust s income and capital gains as long as the beneficiaries do not reside within the state (and there is no business activity within the state); There is no rule against perpetuities, which allows for the creation of dynasty trusts and the elimination of transfer taxes; Periodic accountings, which can be costly, are not required unless the trust document expressly requires the trustee to account; Delaware (and the United States) is viewed as a compliant jurisdiction with all major tax harmonization organizations such as the OECD; Both statutory and common law trusts are strategically designed to benefit the non-us settlor/grantor having US persons as beneficiaries or having possession of US based assets; and When structured correctly, a Delaware trust should have minimal or no Delaware or US reporting requirements. The Delaware Statutory Trust The Delaware statutory trust is an innovative trust vehicle that maximizes flexibility in design and operation. In sharp contrast to traditional trusts, this trust is a legal entity for all purposes and the beneficial (economic) ownership interest is freely transferable. Such transfers of ownership are made without any reporting requirements to the state. Another valuable innovation of this trust is the ability to manage the trust assets in any manner. The beneficial owners may be directly involved, along with professionals who may instruct the trustee on important decisions. This can be of particular value where trust assets include shares of an operating business or where there is a financial investment portfolio and the settlor/ grantor wishes to retain the current investment manager. It also permits the appointment of co-trustees to govern and control specific assets held by the trust while under the overall supervision of the administrative trustee. The Florida Land Trust The Florida Land Trust is a statutory trust specifically designed as an estate planning mechanism to serve as the legal owner of real property (land, buildings, condos, etc) to remove the ownership of real estate in Florida from the taxable estate of the non-us owner. The value of Florida real estate owned by a non-us person at death can be included in the calculation of taxable estate. Thus, the removal of the asset from the threat of estate taxation is a major strategy that should be considered by every non-us person owning property in Florida. For real estate outside of the state of Florida, a Delaware statutory trust should be considered to achieve the favorable estate tax results possible with a Florida land trust. Common Law Trusts Delaware also offers a full range of common law trusts including self-settled asset protection trusts. These trusts provide, among other things: Very difficult legal hurdles and strict time limitations regarding creditor challenges to the trust; and Complete authority of the settlor/grantor to maintain a beneficial interest in the assets under protection. Additionally, Delaware trusts may be fully directed by named advisers and protectors without any requirement of trustee approval or consent to the directions given. 14 AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS

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18 GLOBAL LOCATIONS & NETWORK We are a Hong Kong based Group with an international network of 40 plus offices in over 30 countries, offering access to the expert knowledge and skills of professionals globally. The breadth of our network ensures that there is always an Amicorp office close to you, offering the full range of Group Services. An added advantage is the seamless connection between our offices and professionals around the world. Every Group office can effortlessly connect to all other offices in Amicorp s network. OUR OFFICES Argentina The Bahamas Barbados Brazil British Virgin Islands Cayman Islands Chile China Colombia Curaçao Cyprus Hong Kong India Lithuania Luxembourg Malta Mauritius Mexico Monaco The Netherlands New Zealand Peru The Philippines The Seychelles Singapore South Africa Spain Switzerland Taiwan United Arab Emirates United Kingdom United States Uruguay 16 AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS

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20 GLOBAL OFFICES Africa AMICORP MAURITIUS LIMITED TEL.: Asia & Pacific AMICORP (SHANGHAI) CONSULTANTS LTD. TEL.: AMICORP (SHANGHAI) CONSULTANTS LTD. BEIJING BRANCH TEL.: AMICORP (SHANGHAI) CONSULTANTS LTD. CHENGDU BRANCH TEL.: AMICORP (SHANGHAI) CONSULTANTS LTD. SHENZHEN BRANCH TEL.: AMICORP HONG KONG LTD. TEL.: AMICORP HONG KONG LTD. (REPRESENTATIVE OFFICE - TAIWAN) TEL.: [email protected] AMICORP ADVISORY SERVICES PRIVATE LTD. TEL.: [email protected] AMICORP SOUTH AFRICA (PTY) LTD. TEL.: [email protected] AMICORP ADVISORY SERVICES PRIVATE LTD. (BRANCH OFFICE - NEW DELHI) TEL.: / [email protected] AMICORP MANAGEMENT INDIA PRIVATE LIMITED TEL.: [email protected] AMICORP TRUSTEES (INDIA) PRIVATE LIMITED TEL.: / 96 [email protected] AMICORP NEW ZEALAND LTD. TEL.: [email protected] AMICORP FINANCIAL SERVICES PHILIPPINES INC. TEL.: +63 (0) [email protected] AMICORP SINGAPORE PTE. LTD. TEL.: [email protected] AMICORP ADVISORY FZE TEL.: [email protected] AMICORP ADVISORY SERVICES PRIVATE LTD. (BRANCH OFFICE - MUMBAI) TEL.: / 92 [email protected] 18 AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS

21 Europe AMICORP CYPRUS LIMITED TEL.: AMICORP MALTA LIMITED TEL.: AMICORP BALTIC UAB TEL.: AMICORP LUXEMBOURG S.A. TEL.: AMICORP S.A.M. TEL.: AMICORP NETHERLANDS BV TEL.: AMICORP DE ESPAÑA S.L. TEL.: AMICORP DE ESPAÑA S.L. (REPRESENTATIVE OFFICE - MADRID) TEL.: [email protected] AMICORP SWITZERLAND AG TEL.: [email protected] AMICORP SWITZERLAND AG (REPRESENTATIVE OFFICE - ZUG) TEL.: [email protected] AMICORP (UK) LIMITED TEL.: [email protected] The Americas AMICORP ARGENTINA S.A. TEL.: [email protected] AMICORP BAHAMAS MANAGEMENT LIMITED TEL.: /6 [email protected] AMICORP BARBADOS LTD. TEL.: [email protected] AMICORP DO BRASIL LTDA. TEL.: [email protected] AMICORP B.V.I. LIMITED TEL.: [email protected] AMICORP CAYMAN FIDUCIARY LIMITED TEL.: [email protected] AMICORP AMERICAS LLC, AGENCIA EN CHILE (REPRESENTATIVE OFFICE) TEL.: [email protected] AMICORP COLOMBIA S.A.S. TEL.: [email protected] AMICORP CURAÇAO B.V. TEL.: [email protected] AMICORP MÉXICO, S.A. DE C.V., S.O.F.O.M., E.N.R. TEL.: [email protected] AMICORP PERÚ S.R.L. (REPRESENTATIVE OFFICE) TEL.: [email protected] AMICORP SERVICES LTD. (MIAMI REPRESENTATIVE OFFICE) TEL.: [email protected] AMICORP SERVICES LTD. (NEW YORK REPRESENTATIVE OFFICE) TEL.: [email protected] AMICORP SERVICES LTD. (SAN DIEGO REPRESENTATIVE OFFICE) TEL.: [email protected] AMICORP URUGUAY S.A. TEL.: [email protected] AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS 19

22 BROCHURE TERMS OF USE DISCLAIMER The contents of this brochure are for your general information only. This brochure and its contents are provided as is basis and Amicorp makes no representation or warranty of any kind, expressed or implied, with respect to the contents herein. Amicorp expressly disclaims all representations and warranties, whether express or implied, including, but not limited to, warranties of merchantability, suitability for a particular purpose, availability of services and noninfringement. In addition, Amicorp does not represent or warrant that this brochure or its contents are timely, accurate, reliable, or complete. It is the responsibility of the clients or readers to make their own decisions about the accuracy, currency, reliability and correctness of the information of this brochure. The contents in this brochure are subject to change without notice. Amicorp assumes no liability for the interpretation or use of the information contained in this brochure. PURPOSE AND NO SERVICE PROVIDER-CLIENT RELATIONSHIP The contents herein are provided solely for informational purposes: it is not intended as and does not constitute legal or tax advice. No client or other reader should act or refrain from acting on the basis of any information contained herein without seeking appropriate legal, tax, accounting or other professional advice on the particular facts and circumstances at issue. The use of any content provided in this brochure and the provision or submission of any information will not constitute as an offer or invitation for providing service or create a service providerclient relationship between you and Amicorp. 20 AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS

23 LIMITATION OF LIABILITY Amicorp Group of companies and its shareholders, directors, officers, employees, agents or representatives (herein collectively, Amicorp ) are not liable for any direct, indirect, consequential, incidental, special, punitive or other losses, damages or costs or expenses of any kind, including without limitation loss of profit, data, goodwill, loss of or damage to property, or claims of third parties, arising out of or in connection with the access, use, copying, display of this brochure or its contents, regardless of whether Amicorp has been advised of the possibility thereof. The information provided in this brochure are not statement or representation of fact. They are not intended to form part of any offer or contract. Visual representations like pictures, art renderings, depictions, illustrations, photographs, drawings and other graphic representations and references are only artistic impressions. COMMUNICATION WITH AMICORP Any communication or material the user transmits to the Amicorp website or addresses provided in this brochure will not be treated as confidential or proprietary. Therefore, the user should not send us any that may contain confidential or sensitive data before talking to one of the contacts specified in the brochure. COPYRIGHT & REPRODUCTION Except as provided herein, the content of this brochure is protected from unauthorized copying and dissemination by copyright law and international conventions. Any breach of the terms hereof may subject the user to penalties or damages including, without limitation, those related to violation of trademarks, copyrights, privacy, and publicity rights. All or any third party images are the properties of each third party and by using or showing such images in the brochure, Amicorp does not make any representations or claims that such third party images are properties of Amicorp. JURISDICTION This brochure will only be construed and evaluated according to the laws of the jurisdiction of incorporation of Amicorp Holding Limited. Venue for any and all disputes in any way relating to or arising under this Agreement shall be a court of competent jurisdiction of the incorporation of Amicorp Holding Limited. Copyright 2015, Amicorp Holding Limited. All rights reserved. The content of this brochure and the information or material which it contains including, but not limited to, design, layout, graphics, texts, and the selection and arrangement thereof (collectively the content ), is the property of Amicorp Holding Limited and no portion of this brochure may be used in any manner without the copyright owner s express written permission. Reproduction in any form of part or all of the content of this brochure is prohibited other than for individual use only and may not be recopied and shared with a third party. The permission to recopy by an individual does not allow for incorporation of material or any part of it in any work or publication, whether in hard copy, electronic, or any other form. AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS 21

24 22 AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS

25 AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS PUBLISHED BY AMICORP GROUP - ENGLISH 12/15 AMICORP GROUP TRUST, SUCCESSION AND ESTATE PLANNING PRODUCTS 23

26 CONTACT US AMICORP LIMITED ROOMS , 21/F, WING ON CENTRE 111 CONNAUGHT ROAD CENTRAL HONG KONG STAND OUT FROM THE CROWD AMICORP GROUP