Barbados Offshore Trust Services

Barbados offshore trust services are thoroughly regulated and have been highly rated by the Organisation for Economic Cooperation and Development. Corporate trust services along with other...

Barbados Companies

Barbados companies for offshore trade are officially known and International Business Companies and were introduced in 1991 by the International Business Act. Barbados companies are owned by non...

Barbados Trust Formation

Barbados trust formation is regulated by the Barbados International Trusts Act. Barbados offshore trusts are formally known as International Trusts and are reserved to be used by individuals and...

Barbados Trust

Barbados trust is a legal entity that is used to protect, manage and administer assets. A Barbados trust can be used to manage a pension fund, provide child support over a period of time or can be used singly or as part of an asset protection strategy.

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Barbados trust is legislated as an entity that is available to residents and citizens of Barbados, but the international or offshore Barbados trust, which is the point of focus here, is reserved for the use of non Barbados residents. Non residents include both natural persons, corporations and other entities that are domiciled outside Barbados; that is, in foreign countries.

Barbados trusts that are established for use as an offshore or international entity serve one or more interests that originate and are situated outside Barbados. As an offshore entity, the use of a Barbados trust gives greater asset protection to large or small to medium sized companies, families, social groups and organisations. But asset protection might not be the only purpose for creating a Barbados trust, since groups of clubs may just want to ensure that certain assets are administered professionally for the continuation of that organisation, while parents may just want to ensure that their children’s education is taken care of by setting up a Barbados trust.

These instances are too ways of protecting assets within families and small organisations, although asset protection in itself is often referred to when discussing the importance of separating a certain portion of cash, property, precious jewels or other forms of cash convertible assets in relation to the threat posed by litigation and bankruptcy. Barbados offshore trusts are thus created by normal individuals as well as high net worth professionals such as doctors, engineers, pilots, plant owners and pharmaceutical companies, who are very exposed to the litigation risks because of the nature of the field of work.

Barbados trust formation is a relatively simple process and Barbados offshore trust service providers are regulated by the International Corporate and Trust Service Providers Bill which was enacted in 2011. The Bill serves to provide comprehensive legislation for both new and existing policies and regulations for Barbados offshore trust services.

Barbados trust formation is administered through trust service providers that liaise with the relevant government authorities. Offshore trust formation Barbados requires the presence of a settlor, a trustee, protector and beneficiary. For effective results when using Barbados trusts, it is important that the settlor does not name him or herself as a beneficiary to the trust and he or she cannot under Barbados offshore trust law be the trustee.

Barbados offshore companies are able to effectively make use of Barbados trust and can freely partake in the Barbados trust or offshore company formation process. Barbados companies are in themselves asset protection vehicles and can use a Barbados trust as further back up for a well put together asset protection plan. Barbados companies offshore are taxed at very low rates and can further keep tax liability down due to the fact that Barbados trusts are tax exempt on the grounds that none of the assets of a Barbados offshore trust originate from or are situate in Barbados and that none of the beneficiaries or settlors live in Barbados.

A Barbados company for example can place its shares in a Barbados trust to protect ownership. Other corporate assets, cash or bonds for example, if put in a Barbados trust can be invested through the trustee without having to reveal the true identity of the persons or corporation behind the investments. While the corporate structure provides privacy when doing business, Barbados trusts provide an additional layer of privacy.

Furthermore, Barbados companies are in themselves companies with limited liability and separate the owners’ assets from those of the company, thus limiting losses to within the corporation. The Barbados trust further isolates assets from loss that may be incurred by the company and its owners. Barbados trust property is separate to the assets of the trustee as well and belongs to the trust. Such separation makes it possible to restrict liability and hence minimize the risk of major loss that may possibly extend to personal the assets of a company.

Upon Barbados trust formation, a trust can be created as purpose or spendthrift trusts. Purpose trusts can be established for diverse reasons with charitable and non charitable objectives. Spendthrift Barbados trusts allow the settlor to specify spendthrift terms in the trust instrument to protect the beneficiaries of a Barbados trust from sequestration or seizure as a result of bankruptcy claims.



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