In his article, Steve advises that trusts can play an important part in any wealth management and estate planning structures, as well as offering an effective philanthropic solution for funding social and environmental projects. The most common uses for trusts are asset protection, investment or property holding, as well as succession and inheritance planning by both individuals and corporate entities, usually operating on a discretionary or fixed interest basis.
Private Trust Companies have gained in popularity with high net worth families seeking to retain a greater degree of control and involvement over their trust affairs, while maintaining the integrity and validity of the trust structure. This type of company is a special purpose vehicle, controlled by a board of directors, established specifically to be appointed as the trustee of (or a number of) family trusts. The advantages of such a vehicle extend to family members, or trusted advisers, who wish to have an active role in the administration of the trust at the board level of the Private Trust Company.
The article also covers the recent introduction of Private Foundations in the Isle of Man. A Private Foundation is a separate legally registered entity which acts like a trust but operates like a company. This allows the Founder, if they so wish, to participate in the running of the Foundation. A Foundation is taxed as a corporate vehicle in the Island, at the corporate rate of zero percent.
Charitable Foundations and Trusts are being utilised by successful entrepreneurs and high net worth individuals who want to 'give back' to the community that helped them become successful. The article goes on to describe the new and distinct regime established by the Isle of Man Charities (Exemption) Regulations 2009 which provides a reduced level of regulation for such private arrangements, compared to publicly funded Isle of Man Charities.
The article concludes that all these attributes, together with the Island's strong professional network of specialist lawyers, continue to make the Isle of Man an attractive jurisdiction for all variations of fiduciary related work, whether that involves a private or corporate client relationship, a family office requirement, or even a philanthropic purpose.
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On a recent transaction we worked closely with IQE to set up and run a corporate structure to facilitate a new residential development in London. We found the IQE team responsive and proactive. It was clear that their property experience added value and understanding of the clients’ requirements on the project. Christine Jackson, Partner, Real Estate Group, Lawrence Graham LLP