Long-Term Planning

A Model Offshore Trust has full flexibility to execute a long-term plan to assure your family’s financial safety.

No time limit. A Model Offshore Trust can continue for the maximum term permitted by the laws of the jurisdiction in which it is administered. If you choose a Trustee in a country that places no limit on the term of a trust, your Model Offshore Trust can be perpetual.

Succession of the Protector. Unless restricted by his predecessor, each Protector has a power to appoint his own successor(s). Thus there should always be a Protector of your Model Offshore Trust, to monitor the performance of the Trustee, even if the Trust continues for many generations.

Separate trusts. The Trustee has a power to divide the Trust into separate Trusts, each for certain members of the Beneficiary Class. You as Protector have a power to require the Trustee to make such a division at any time, which can be a useful and flexible estate-planning technique. If, for example, you have three children, you could require the Trustee eventually to divide your Trust into three separate Trusts and name each of your children as the Protector of one of the three Trusts.

Preferences. The Trustee, with the consent of the Protector, has a power to establish preferences over all or a portion of the Trust Fund for particular members of the Beneficiary Class. This allows the Trust to accommodate any special needs or circumstances of particular members.

Because it can be perpetual (no time limit), a Model Offshore Trust can be a program of family wealth management that continues into the indefinite future and that permanently removes family wealth from the U.S. income and estate tax system.

NEXT: Choosing a Trustee

Selecting the right Trustee is an essential step in offshore trust formation.

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