Curacao Trust Explanation
A trust fund is a legal entity where one party, the settlor, can set aside money or property for the benefit of another. A perfect example of this fiduciary service is of trust funds are the ones equivalent to long-term savings accounts set up by parents or grandparents in order to benefit a child.
The property can take the form of money, stocks, bonds, or an actual physical property but growth assets are typically placed into trust for the tax benefits explained below. A trustee holds it in a trust fund. The trustee is the person who looks after the property for the benefit of the child. The grantor, who contributed property to the trust, and the trustee can be the same person, but this is not necessarily so. Trusts can be created during a person’s life or in a will after death.
Trust Curacao Fiduciary Services
Personal trust services or corporate trust services come with numerous advantages.
In the case of a child too young to properly care for the property, a trust can act as spendthrift protection. The assets are protected for the beneficiary by the trustee until the child has reached the age declared in the trust. Often a trust fund will set this age to be the majority before it is accessible by the child.
Because of the removal of property from the trustee into the trust, this essentially protects these assets from the attack of future creditors. A discretionary trust can for example remove the ownership of the assets from the trustee while still benefiting him. Combines with the privacy benefit described below, this can asset protection cab pose legal and moral issues.
The grantor to the Curacao trust also benefits in the form of tax savings. Income, estate, and gift tax advantages are usual when setting up a Curacao trust. To comprehend the advantages in taxation of the establishment of a trust, contact a professional Curacao tax advisor or a financial consultant.
A Trust in Curacao can also be established for privacy purposes since the declarations in a will are public whereas those in a trust are not.
Trusts can be set up by trust companies in business agreements involving multiple parties to govern their structures.
Access to Trust Companies in Curacao
Once a trust fund is created, the funds pertain to the child. The grantor is not able to claim these funds. Based on the limits set forth by the trust, access by the child may involve part of the income or principals from the trust. In general trusts are created to limit the access to the trust fund by a minor without approval from the trustee.
Several types of international trust services rendered by Trust Service Companies or by Curacao Banks are available in Curacao.