Trusts are used for many purposes, primarily for tax, estate and sucession planning. They can also be used as a convenient way to consolidate assets into one structure. There are a number of different trust arrangements that may be suitable and LTCL endeavours to discuss all the options available. We also urge our clients to seek appropriate tax and legal advice in the jurisdiction in which they are tax resident. This helps ensure that any structure works for the settlor and all the beneficiaries and suits each of their individual needs.

Discretionary Trust

Discretionary trusts offer a flexible platform in which the trustees have absolute discretion to manage the trust in the way they see fit, taking into account their overriding obligation to the beneficiaries and the need to comply with the trusts as set out in the trust deed.

Fixed Interest Trust

A fixed interest trust confers on the beneficiary vested interests either immediately or at some future date in the whole or a pre-determined portion of either the capital or income (or both) of the trust.

Life Interest Trust

A life interest trust is one whereby a beneficiary can be entitled to receive all income generated from the trust during his/her life (known as the life tenant). On the death of the life tenant the capital goes to a separate beneficiary (known as the remainder man).

Asset Protection Trusts

Asset protection trusts were introduced to Gibraltar following amendments to the Bankruptcy Act. These trusts are subject to particular provisions and to registration with the Registrar of Dispositions within the Financial Services Commission. Such trusts are of relevance to clients with certain requirements.