Articles & Video
Radios, Coffee Beans & Trusts - Trusts in Latin America
Businessmen and wealthy families in Latin America understand the vagaries of politics and the seesaw economies of the region.
Such uncertainties beg for both asset protection and succession strategies to be implemented, preferably by creating either a trust or a foundation and when I am not writing about Latin America, I concentrate on being a trust practitioner.
The Middle East and the growing call for bespoke structuring
According to a 2016 report on ultra-high net worth individuals there are 212,615 individuals in the world who hold a total of over $30 trillion in wealth. To put it a slightly different way, 12% of the world's wealth is controlled by just 0.0004% of the planet's adult population. By 2020 the number of ultra-high net worth individuals is anticipated to reach 318,000 with compound annual growth of 9%. In short the rich are getting richer, and more numerous.
Beddoe Relief, charitable trusts and controlling legal costs: expectations on trustees
All trustees who find themselves considering litigation on behalf of a trust should take note of the judgment of the Royal Court of Jersey in F Trust JRC142. It provides helpful guidance in the following areas:
Resigned trustee wins court approval for reappointment - what the RBC Trustees (Guernsey) Limited judgement means for the trusts industry
The case, heard before the Royal Court in Jersey concerned a trust (the Trust), established under the law of England and Wales in 2001 by an Isle of Man incorporated company (the Company). RBC Trustees (Guernsey) Limited were appointed as the trustee (the Representor). Although the Trust was established upon standard discretionary terms, its primary function was that of an employee benefit trust (EBT), for the benefit of some 180 beneficiaries (employees, former employees of the Company and their family members).
A Guide to new legislation on Foundation Companies in the Cayman Islands
Risk management regarding Offshore Trust Planning
In today’s world there must be risk management for all offshore planning, not just with regards to trusts. Trusts, however, must be established properly because of the unique risks involved and increasing scrutiny they are facing by tax and regulatory authorities, especially where the beneficiaries and settlors are domiciled in jurisdictions such as across here in Asia.
Article 47 applications to vary a trust
The Jersey Royal Court's recent decision in the Y Trust and Z Trust provides welcome guidance in respect of article 47 applications to vary a trust. In particular, the Court considered the interplay between the wishes of a settlor and the Court's assessment of "benefit", a point which has not been considered before by the Court. The decision also examines article 47 applications alongside public policy considerations affecting a modern society.
Setting aside subsequent transfers to trusts - Jersey's statutory law of mistake in operation
The enactment of the Trust (Amendment No 6) (Jersey) Law 2013 (Amendment 6), saw Jersey introduce a statutory basis for relief to be granted for mistake in the form of Article 47E of the Trusts (Jersey) Law 1984 (the Law). There have been a number of decisions of the Royal Court in this area since then, although until the decision in In the Matter of the D, E and F Trusts those cases were decided on the basis of the pre-existing law.
The Guernsey Register of Beneficial Ownership - what you need to know
The Beneficial Ownership of Legal Persons (Guernsey) Law, 2017 (the Law) finally received Royal Assent on 25 July 2017 and is scheduled to come into force on 15 August 2017.
Anyone following the progress of the Law will be aware that it was originally expected to take effect from 30 June 2017. Whilst commencement has been delayed it is important to note that the original timeline for compliance with the Law remains unchanged.
The Franco- Files
Frederic Mege provides an overview of French Tax Legislation applicable to Trusts, focusing on Trustees' filing requirements
Variations of Jersey trusts: relevance of settlors’ views and public policy
The Royal Court of Jersey has recently approved (on behalf of minor, unborn and unascertained beneficiaries) variations of two trusts established by a late Settlor whereby the beneficial class of each trust was to be widened beyond the parameters that the Settlor had set out during his lifetime.
In considering the application, the Court made observations about the relevance of the Settlor’s firmly held views to the Court’s discretion to approve the variation, and also addressed potential issues of public policy.
Beddoe relief where a third party claim may exhaust Trust assets
The Grand Court of the Cayman Islands has granted Beddoe relief to a trustee, in circumstances where a successful third party claim would have exhausted the trust assets.
Shining a spotlight on family provision
Nearly 80 years since the first family provision legislation came into force in this jurisdiction, and 10 years after heather Ilott issued her claim against the estate of her mother Melita Jackson, 7 justices of the supreme court finally had the opportunity to grapple with the difficulties of claims under the inheritance (provision for family and dependants) act 1975 in the landmark case of Ilott v The Blue Cross  UKSC 17.
Probate in international litigation
Several recent decisions have highlighted some of the issues that can arise where those claiming through a deceased person are parties to proceedings in a place other than the place where the deceased was domiciled.
Hot off the Press: On SRIP trusts, Singapore blinks… Or, is that a wink?
On 18 July, Singapore published adjustments to its OECD CRS FAQs (available here), featuring modification of the guidance on settlor reserved investment power (SRIP) trusts. In the prior version of the FAQ (as analysed in my blog of 25 April), the Inland Revenue Authority of Singapore (IRAS) stated in FAQ B.5 that a SRIP trust would not qualify as an FI because the manager of the assets held by the trust (i.e., the settlor) would not itself be an FI. The revised version is no longer so certain.
New Act targets facilitation of tax evasion
On 27 April 2017, the Criminal Finances Act 2017 (UK) received Royal Assent. It is expected to come into effect in September 2017, and will introduce the new corporate criminal offence of failing to prevent the facilitation of tax evasion. The Act will have extraterritorial effect and potentially render financial services businesses in the Channel Islands, and more broadly, criminally liable for the acts of their employees in connection with tax evasion.
The UK trusts register – the impact on non-UK trustees
On 22 June 2017, as one of its first pieces of business, the new UK Parliament enacted the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (The Regulations). The Regulations implement Directive 2015/849/EU, the EU’s “4th Anti-Money Laundering Directive”, and took effect on 26 June 2017. Contained within the Regulations are provisions regarding a national “register of trusts”. Such national registers have been demanded by various EU Member States and institutions.
Time to Renew the FFI Agreements
Upon registration for a GIIN via the IRS FATCA Registration Portal, certain FIs (i) subject to a Model 2 IGA, or (ii) not subject to any IGA automatically entered into a contract with the IRS known as the FFI Agreement. The FFI Agreement sets forth the FI’s rights and responsibilities (with responsibilities outnumbering rights heavily).
Through the looking glass - disclosure on Trusts
In our first edition after the election, we return to the issue of the disclosure of trusts, as the unstoppable transparency juggernaut continues to roll on. Any hopes that the government would be too busy dealing with Brexit to be able to pass new legislation has been dashed - the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 were passed on 22 June 2017 and took effect on 26 June.
The Trusted Advisor to a Family Business: Who do you Trust?
The answer to this deceptively simple question is key to understanding how a trusting relationship forms between a family business and their adviser. It is relevant to explore this because many advisers are seeking to become the ‘trusted adviser’ to a family business at a time when there seems to be a general decline in trust across many levels of society.