 |
» The trust permits the transfer of profits, before corporation tax is levied, as a trading expense to a Retirement Trust on behalf of a Proprietary Director as a proportion or multiple of that Directors salary.
This “factor” is dependant on a ruling by the Revenue Commissioners and it goes without saying that the Director in question would have – at some time - to be resident for taxes in the country where the trust is established
» There are some rules governing these trusts namely :
• They are not permitted to purchase any asset which would give the Director an immediate benefit e.g. Works of Art, Equity within his/her own company, Holiday Home.
• The Funds can be accessed after the age of 50 or due to ill health – normal pension rules apply upon withdrawal of funds from the Trust
» Why create a trust?
• To protect one’s belongings in such cases as where a personal bankruptcy is a future possibility
• Protect family or business assets in such cases as the danger of legal seizure procedures could be implemented
• Ensure that assets go to the chosen descendant (in countries where Napoleonic laws may apply, for instance)
• Planning a retirement fund, as is possible in Ireland where the trustee may also, in the long-term, be the beneficiary
• Avoiding problems of succession
» Where to establish a trust
• Trusts can be set up in the United Kingdom, Jersey, Guernsey, Ireland and Malta. Only a detailed examination of the circumstances may allow the best choice to be made. The costs of construction of a trust can range from 5,500 - 8,000 €
|
|
Haut
de page