What'S Nf.wS Issue 9 October 1997
special
9
TTrust - the word actually sums
Pip exactly what Michael and
the team's role is in creating
structures for clients who have
opted for the preservation and
growth of their wealth and
possessions through a form of
asset management that has
been around for almost a
thousand years. 'When
medieval knights went off to
war,' Michael says, 'they could
be away for years. They
needed someone they could
trust to manage their estates in
the meantime.' This led to the
creation of early trusts under
English law and they are now
firmly entrenched in UK
legislation 'and in the law of
Khose countries, such as the
JS, whose legal systems were
initially based on English
common law.'
PRESERVING ASSETS
In fact, the concept hasn't
is to preserve the value of
those assets; clearly, we'd be
aiming to grow those assets
whenever possible.' If the
notion of trusts evokes Agatha
Christie-style who dunnits in
which young orphans prove to
be missing aristocrats with a
trust fund waiting to
transform their formerly
miserable lives, then you
would be way off the mark -
but not completely.
SELF-DETERMINATION
'Certainly, a trust is used by
concerned settlors who want
to protect both the
beneficiaries and the assets,'
Michael agrees, 'for example,
they are often created for
children or other relatives who
are incapable - perhaps
through ill-health, but also for
other reasons - of managing
their own affairs.' He offers no
anecdotal examples, but then
decide yourself whom should
receive what and when.'
ASSET PRIVACY
Estate planning is another
reason for opting for a trust
structure. 'When you establish
a trust,' says Jacqueline, 'what
you are actually doing is
transferring the legal
ownership of assets to that
trust and its trustees. That
means the beneficiaries may
benefit from it, but they have
no legal control over it. The
assets no longer form part of
an individual's wealth so they
are not disclosed in
declarations of wealth and
usually cannot he confiscated
or repatriated.' The names of
beneficiaries are only recorded
in the deed of trust, which is a
private document and is not
reported to any authorities.
'That guarantees privacy,'
Jacqueline confirms.
says Michael. 'I've been
travelling a lot recently,
especially to see our private
bankers in Southeast Asia,
because there is more demand
for information and explanation
of how a trust works. In
addition to all the advantages
noted above, there are more.
Trustees are morally and legally
obliged to manage assets
professionally and impartially,
so our clients are also getting
the benefit of quality advice and
portfolio management coupled
to international financial
planning and fiscal liability
mitigation. While you can
establish a trust at any time, it is
usually most advantageous from
a fiscal perspective when you're
in between jurisdiction, ie. when
you're moving from one
country to another.'
ADDING VALUE
Relationship managers should
Trust experts left to rigbt, Michael Jephcote-Wareham,
Jacqueline Hunter and Brendon Francis.
V
A
Handling customer needs, front left to right: Ros Chambers,
Claire Marriette, Chris Corbin and Dale Hubber-Richard.
changed that much since the
middle ages. The settlor (see
what's in a word) transfers
property to the trustee,
Rabobank Trust Company
Guernsey, for the benefit of -
yes, you guessed it - the
^>eneficiaries. 'As trustees,'
Jacqueline explains, 'our job is
to make sure that the assets
are managed in the best
interests of the beneficiaries.
That means our minimal aim
you wouldn't expect gossip,
however discrete, from a
trustee. 'However, there are far
more reasons why someone
would establish a trust. Among
them are preservation of
family wealth and the
avoidance of, for example,
forced heirship. In some
countries legislation obliges
you to leave your assets to
certain relatives. By
establishing a trust, you can
PROFESSIONAL
MANAGEMENT
A trust clearly has a number of
advantages, but signing over
one's assets can hardly be an
easy decision, especially when
the trust concept is not
traditionally an option. How
does the team market the service
and reassure potential clients
that their assets are in good
hands? 'The trust is gaining in
popularity around the world,'
keep that in mind; if they can
alert their customers to this
kind of service at the right
time, then they can really add
value. If you would like more
information on Guernsey
trusts, Michael, Jacqueline and
Brendon are more than willing
to fill you in. Call them on +44
1481 725147.
