Trustee Services

Avenue Trust Company is a safe pair of hands with a reputation for administering and managing complex international structures in a professional yet personable manner. As an independent member of BKR International it has a global reach that is normally only achieved by large corporations yet is able to provide bespoke tailored services normally only offered by a smaller business. Avenue Trust's own dedicated website www.avenuetrust.gg is currently underconstruction.

Private and Corporate Client Services

Avenue Trust Company (Lince Salisbury’s subsidiary) offers administration services for private, corporate and institutional clients through professionally qualified staff:

Trusts - what are they?

The concept of a Trust dates back to medieval times when used by feudal lords to plan their estates.

 

The basic concept of a Trust is that a “Settlor” creates a relationship with another party, the “Trustee”, and transfers the legal title of their assets to the Trustee’s control in order that the Trustee can hold those assets upon trust for the benefit of the “Beneficiaries”.

 

For example, Anne places a house with John who would hold the house solely for the benefit of Anne’s children.

 

The legal ownership of the assets lie with the Trustee and the Settlor relinquishes control.  The Trustee doesn’t have a beneficial interest in the assets and is usually detailed as an excluded party, but it is possible for the Settlor can be a beneficiary. It is the responsibility of the Trustee to look after the assets for the interest of the Beneficiaries and the Trustee has a duty of care.  Where trustees manage multiple trusts, the assets are held separately and are designated along the following lines “ABC Trust Company Ltd. as Trustee of the XYZ Trust”.

 

There are many forms a Trust can take – Will Trusts, Declarations of Trusts, Deeds and Instruments of Settlement etc. – and are largely governed by a Trust instrument.  This document stipulates the parties involved and the framework from which the Trustee is required to work.

For example, the Instrument could stipulate:

  • that certain parties are excluded (this can be done later if so permitted)
  • whether distributions to certain beneficiaries or classes of beneficiaries can be made from capital/income/both
  • if a protector is required
  • investment terms
  • appointment of assets and their management etc.

 

The Trust Instrument’s terms can range from being quite prescriptive and specific to fully discretionary.

A Letter of Wishes written by the Settlor may be considered by the Trustees.  Such a letter enables a Settlor to outline their wishes in relation to how the Trust should be run during and after their lifetime.

 

There are many benefits of using a Trust as outlined in the following section.

Why use a Trust?

There are numerous uses, as follows:

  • Privacy/Anonymity

The Trust document is private given that in Guernsey there is not a public register, therefore assuring confidentiality.

 

  • Preservation of Family Wealth

Individuals may wish to ensure that their wealth is preserved for the benefit of future generations.

Some family members may not be able to plan finances quite so efficiently, so Settlor’s may express their wish to the Trustees that they be mindful in controlling a beneficiary’s allowance so as not to deplete the Trust fund.  Trustees have to remain impartial and act in the best interest of the beneficiaries and typically will have a wealth of experience in dealing with such cases.

Transferring assets and passing control to a corporate trustee who is regulated and has knowledge of preserving and enhancing wealth is often attractive and comforting for individuals.

 

  • Succession/ Estate Planning

Trusts can be used as a means of providing for family members during their lifetime or following a specific event, i.e. upon attaining the age of 25 or upon the death of the Settlor.  Income/capital allowances can be paid to family members and education expenses can also be funded for children or grandchildren.

The Settlor’s decision to separate their assets from their personal estate means that the settled assets are not governed by the Settlor’s will(s) upon their death, therefore, the Trustees can use the assets for the benefit of the beneficiaries and not have to deal with complex legal procedures as a consequence of the Settlor’s demise.

 

  • Efficient Tax Planning

The disposition of the asset to the Trustee can be advantageous in that it can assist in minimising or mitigating inheritance, capital gains, income tax and other wealth taxes either during an individual’s lifetime or upon their death.

 

  • Asset Protection

By transferring assets to a Trust arrangement, it is important to note that a Settlor removes those assets from their personal estate.  This means that the Trust can be used for protecting assets from forced heirship provisions and creditors.

 

  • Protection from other matters i.e. currency instability, political instability etc.

Persons living in countries where there is political instability can alleviate this risk by transferring their assets to a more stable jurisdiction such as Guernsey.

What assets can be held in a Trust?

The following is not an exhaustive list but hopefully gives an insight in the trust uses.

  • Fiduciary deposit bank accounts
  • Stocks and shares
  • Real estate
  • Intellectual property
  • Insurance or Assurance policies
  • Cars
  • Yachts
  • Planes
  • Paintings and Works of art
  • Jewellery
  • Unit trusts/Mutual funds

Why use a company?

Companies can be used on their own or as part of a larger structure.

Whilst we have significant expertise in Guernsey registered companies, we also can incorporate companies in a wide range of international jurisdictions including:

  • Jersey
  • British Virgin Islands
  • IOM
  • Malta
  • Netherlands
  • United Kingdom
  • Cayman
  • Bermuda
  • Bahamas
  • Panama
  • Singapore
  • Cyprus

In addition to full company incorporation, we can provide full on-going servicing. Our full range of company services includes:

  • Company administration
  • Accounts production
  • Bookkeeping services
  • Provision of Registered Office
  • Provision of Registered Agent
  • Provision of Directors
  • Provision of Secretary
  • Provision of Nominee shareholders
  • Maintenance of statutory books and registers.
  • Filing of statutory returns as required. e.g. Annual Returns and Validations.
  • Maintenance of companies in Good Standing
  • Compliance reviews

Uses and Benefits of an international company?

Why use a corporate vehicle (international company)?

Companies provide limited liability for investors and can form a part of a larger structure if so required. For example, its shares could be held by an international trust which provides confidentiality, security and potentially tax benefits.

There are many different types of company, for example:

  • Investment Holding
  • Asset Holding
  • Property Holding
  • Trading/Retail Companies
  • Consultancy Services

Examples of assets that can be held in a company include:

  • Fiduciary term bank deposits
  • Stocks and shares – both listed and unlisted
  • Royalties (e.g. music and book)
  • Jewellery
  • Cars
  • Yachts
  • Planes
  • Paintings, sculptures and other works of art
  • Real estate – residential and commercial property
  • Insurance or Assurance policies
  • Intellectual property- which can be licensed
  • Image Rights – which can be licensed

Foundations

A Foundation is commonly described as a hybrid of a trust and a company. However, unlike a trust a Foundation has its own legal personality and can allow the depositor of assets to retain a degree of control over the activities concerning the management of the assets deposited.

Other Structures

  • Pensions

We act as trustees to private trust vehicles and fully service them.

We also service structures involving:

  • Limited Partnerships
  • Unit Trusts
  • Purpose Trusts
  • Special Purpose Vehicles

Family & Private Office

Many wealthy families with complex financial affairs require more dedicated or focused services and often require employees of their own, either directly or through the establishment of their own family or private office. We help families and family offices in finding, managing and maintaining the most appropriate offshore solutions.

There is no “one size fits all” Family or Private Office solution.

Drawing on our existing expertise and relationships we tailor our services to meet the specific needs of the family. This can lead to the establishment of a separate office within our business, the provision of one or more of a range of services, the establishment of a family Limited Partnership or a Private Trust Company.

With careful consideration, expert management and trusted experienced independent advisers a long‑term solution can be provided to meet the family’s needs as required.

Corporate and Institutional Client Services

Corporate and Institutional solutions may involve the following:

  • Special Purpose Vehicles
  • Companies
  • Trusts
  • Special Purpose Vehicles
  • Employee Benefit and Incentives
  • Joint Share Ownership Plan (JSOP) Trusts
  • Global, Group, International, Executive and All-employee Pension Trusts
  • Compliance
  • Outsourced Financial Accounting

Corporate & Employee Solutions

The need to properly motivate key executives and staff in paramount to many businesses. We can assist by providing a variety of incentive arrangements. These solution can be family businesses and independent corporates alike whose arrangements may include:

  • Nominee arrangements for management buyout and private equity transactions
  • Option and long‑term incentive plans
  • Retirement and pension plans
  • Joint Share Ownership Plan (JSOP) Trusts
  • Employee share ownership plans
  • Employee co‑investment vehicles
  • Split contracts for dual / multiple employment