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Protection of property
Every property deserves protection. You can protect any property:
- Real estates
- Shares in companies
- Funding
- Movable property
- Intellectual property
Various methods can be used to protect property, beside offshore companies, also specific forms, e.g. offshore trust or offshore foundation are very traditional and effective.
Offshore Trust
Trust is common in the Anglo-Saxon law, where it has a long tradition. Typically used to protect property, combined with the anonymity of the founder of the trust. The Trust is also suitable for holding property and inheritance.
Trust settlor transfers his property to the trustee, who becomes his owner and is required to manage the trust property for the benefit of the beneficiaries (persons who have benefited from these assets). As a rule, the trustee will become a legal entity established under the law governing its own trust. A trust is established by concluding a contract between the founder and the trustee.
By transferring the property to a trust, the founder ceases to be the owner of the property. Third party claims or obligations of the original owner - the founder of the trust - cannot be satisfied from the assets transferred to the trust because they are no longer the assets of the founder.
Offshore Foundation
The Foundation is a tool used mainly in countries with continental law and also has a long tradition. From a legal point of view, the Foundation is a legal entity established through donations, which then forms its assets held for charitable goals.
The Foundation is engaged in non-commercial activities, its founder, in some states may define in advance those who will benefit from the Foundation's assets.
After being transferred to the Foundation, the property ceases to be property of the founder. It cannot therefore satisfy third party claims.
The most commonly used tax havens to protect property
- USA
- Panama
- Belize
- Seychelles
- Cyprus