TRUSTS, FOUNDATIONS & CRYPTO EXCHANGERS
Commonly, people create a will to have their assets distributed after they pass away, but there is another aspect of estate planning that may offer unique benefits to you and your family: a trust. Unlike a will, you will have more privacy the way a trust's terms are set up.
A trust is not a separate legal entity like a company it is rather a legal private arrangement formed as a way to hold and protect your assets for the future. A trust cannot own assets in its name, but it can hold assets, invest and borrow money, and operate businesses. Upon its formation, it sets out who the beneficiaries and trustees are and how the trust will be administered.
Usually the settlor, also known as the creator or grantor, transfers assets to a trustee to hold for the benefit of a beneficiary. It is the settlor who sets the terms for the way assets are to be held, gathered or distributed and the trustee who ensures your assets are managed according to your wishes both during your lifetime and after your death. The trustees are the legal owners of the assets who must act in the best interest of the beneficiaries who are the beneficial owners of the assets.
While people usually set up a trust during their lifetime, you can also specify in your will that you want to create a trust upon your death.
Here are five benefits of having trusts:
- Trusts avoid the validation process ;
- Trusts could provide tax benefits ;
- Trusts offer specific boundaries for the use of your assets ;
- Revocable trusts can help during illness or disability - not just death ;
- Trusts allow for flexibility.
After a thorough study of best practices in other top trust jurisdictions, the Seychelles International Trust Act incorporated all of the best features of other trust legislations to its own. The Act also includes various amendments and improvements that allow for better flexibility and tougher asset security; a benchmark for asset protection trust legislation in Seychelles law.
We understand that, when it comes to personal and family business, every situation is unique, which is why we take it upon ourselves to understand your aspirations for the future.
A Foundation is a legal corporate entity separate from its creators and it can own assets or participate in legal proceedings in its name. It is formed like a company and managed by a board of councillors like a company's board of directors but it does not have owners.
Usually, foundations are used for charitable purposes in other jurisdiction, but in the Seychelles foundations are generally used as private and family foundations to transfer assets of an individual as part of an estate to give that individual the security that the assets will be managed or distributed in accordance to their wishes, making it harder for prospects to have access to the assets.
The founder, who establishes the foundation, is the one expected to transfer the initial assets into the foundation and they can be one of the councillors managing the foundation without influencing the credibility of the foundation. The councillors who manage the assets must act in the best interest of the foundation itself. When assets are moved into a foundation, they become the property of the foundation itself. The assets are no longer the property of the founder and neither do the assets become the property of the beneficiaries. The beneficiaries do not have any automatic rights to the assets. The Foundation can sign agreements, enter into contracts and own assets including funds in bank accounts in its name and trade and own shares or other interests in companies.
The key parties in a Seychelles Foundation are founders, councillors, protectors and beneficiaries. The main advantages of a Seychelles Foundation over other foundations are that it is itself the beneficial owner of the foundation assets. That in itself is a powerful advantage, non-existent elsewhere, which makes a Seychelles Foundation a very appealing, holding entity instead of a trust or a nominee shareholder.
The cryptocurrency market is one of the most interesting ecosystems and continues to grow rapidly in the recent years. It creates new opportunities to run a location independent business, tie it up to your own philosophy, run it with minimum personal identification, all while using existing tax legislations worldwide. Therefore more and more entrepreneurs are beginning to use it as a form of business. Some people claim that it is the future of money and entrepreneurship.
Despite the obvious benefits such a form of business has, cryptocurrencies are not without their challenges. One of the main ones is a confusion in many countries regarding how cryptocurrency should be regulated and taxed. Governmental bodies of certain jurisdictions of the world like China, Japan, Korea, US, UK and some countries in EU are starting to impose financial regulation on cryptocurrency transactions, reducing the benefits of the business and making its future uncertain.
While some countries are still debating how to regulate and tax cryptocurrency, several offshore jurisdictions still treat transaction with cryptocurrencies as unrestricted and have no special regulations allowing all transactions with cryptocurrencies being absolutely legal with no tax duties.
In certain jurisdictions depending on a type of your cryptocurrency business there is need to obtain a licence.
We can provide you with the following cryptocurrency related services:
• Crypto-compliant company formations and cross-border structuring
• Digital asset and financial services licensing if required
• Blockchain and ICO advisory services
• Crypto transaction account opening introduction services
• Legal opinions and professional statements
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