An overview of Collas Crill Trust and our services.

While there is no legal requirements for the Trustee of a Guernsey Trust to be resident, it is most often necessary that they be located outside of any higher-tax jurisdiction to avoid the risk of the Trust itself becoming liable to tax there.

The continuing globalisation of private and institutional wealth is driving the development and expansion of financial services. Careful consideration of where to base your or your clients’ structures is more important than ever.

For those clients who wish to establish a local or international pension plan, Collas Crill Trust can offer services as Trustee.

The location of management and control of a company will often be a crucial factor in deciding that company’s tax residence. Having directors (or those whose directions are habitually followed by the director) located in a high tax jurisdiction can negate many tax planning benefits.

Many potential Settlors of trusts find the prospect of relinquishing control or influence over their assets to the trustees daunting. Result? Several distinct methods of allowing the retention of an acceptable degree of influence have developed. One such method is the use of what is known as a “Private Trust Company.” Changes to Guernsey Trust Law introduced in the Trusts (Guernsey) Law, 2007 have made Guernsey an attractive jurisdiction in which to site Private Trust Companies.

While Trusts have been in existence since medieval times, they tend to be less well understood than corporate structures and some of the terminology used can be confusing for those who are not dealing with them on a regular basis. It is fair to say that even for individuals who may have been involved with corporate structures throughout their working lives, the creation of or involvement with more than one trust is rare.

An overview of Guernsey as a jurisdiction choice.

The Channel Islands Stock Exchange (CISX), which is based in Guernsey, commenced operations in October 1998, since when it has approved over 4,000 securities for listing with a total market capitalisation of over US$ 50 billion. The CISX offers a highly personalised approach and fast track processing of listing applications within a well regulated and innovative marketplace.

There has been an explosion of entrants to the ranks of the super or ultra wealthy in recent years. Members of wealthy families are mobile and base themselves in diverse jurisdictions. The continuing globalisation of private and institutional wealth is driving the development and expansion of financial services and careful consideration as to where to base your or your clients’ structures is more important than ever.

Image Rights, which can often be a collection of various intellectual properties relating to a well-known person, team or other body, can perhaps best be described as: “The exclusive rights to control commercial use of a person’s name, image and other identifying characteristics”. In the worlds of sport, entertainment and fashion, these Image Rights are often of significant value and their exploitation can generate a substantial proportion of the owner’s income.

Guernsey companies can be used beneficially for an extremely wide range of activities, from simple asset holding to complex financial transactions or trading activities.

The introduction of the Companies (Guernsey) Law, 2008 on 1st July 2008 changed the types of company requiring a statutory audit. Under the previous law the only companies that could opt to be exempt from audit were generally those that were either dormant or purely asset holding. Any company not eligible for or opting against audit exemption was required to submit to an annual audit of its financial statements.

A Special Purpose Vehicle (“SPV”) is a term applied to a wide range of companies, formed for the specific purpose of entering into a financial transaction or series of linked transactions, often as part of a financial restructuring within a multi-national group of companies, for securitisation of assets or liabilities or for tax-efficient structuring of a transaction.

In order to be valid a traditional trust is required to comply with what are known as ‘the three certainties’. • Certainty of Intention • Certainty of Subject • Certainty of Objects Certainty of Objects requires that a trust must be formed for the benefit of one or more identifiable individuals (beneficiaries) or else it will fail.