As Gibraltar law is based on English common law it gives full legal effect to the concept of trusts. There is no requirement in Gibraltar for the disclosure of any information whatsoever relating to the establishment of a settlement or as to the identity of the settlors or beneficiaries although certain particulars of a Gibraltar Trust may be registered, voluntarily, if desired. The assets of a Gibraltar trust need not be held in Gibraltar.
The income and gains of a trust created by a non-resident of Gibraltar for non-Gibraltarian beneficiaries is exempt from local tax even if the trustees are resident in Gibraltar.
The concepts of a discretionary trust and other commonly used forms of settlement are recognised in Gibraltar. Trust deeds are often very similar to their English equivalents.
Trusts created in Gibraltar can provide significant tax planning advantages and Steadfast Trust Company Limited can advise as to the uses and benefits of trusts and their creation in circumstances appropriate to clients' requirements. Steadfast Trust Company Limited is fully licensed by the Financial Services Commission of Gibraltar and is able to provide trustee services and to administer trust assets.
In certain circumstances the assets of a Gibraltar trust can be uniquely protected by amendments to the Bankruptcy Act which provide that the assets of registered dispositions are protected against claims by creditors of the Settlor following the creation of the trust. Such trusts are often referred to as asset protection trusts.
Foundations
The Private Family Foundation has been used for generations in Civil Law jurisdictions as a vehicle for estate and inheritance planning, and offers protection, flexibility and a level of control not compatible with the trust concept. The Foundation may also be used as an alternative for those who are unfamiliar with the common-law concept of a trust.
The Foundation Council replaces the Trustees and acts in a similar manner to the board of directors of a company. The Council must act in strict accordance with the Foundation Regulations (similar to a Trust Deed), stipulated by the Founder (the equivalent of the Settlor of a Trust) at the outset. The Foundation Charter (similar to the memorandum of a company) must be registered in the relevant jurisdiction and, as such, the Foundation is a registered entity with it’s own legal personality. Steadfast Trust Company Limited can provide Foundation Council Members and assistance with the formation process as required.
We are able to advise on the use and creation of Private Family Foundations in Jersey, Panama and Liechtenstein through our agents and intermediaries in those countries.