Offshore trusts are normally created for the protection of assets, deferment or mitigation of tax, creation/maintaining anonymity and inheritance planning

A Trust is a legal relationship created by means of a Trust Settlement or Agreement, which is evidenced by a written document and established under the Laws of the relevant jurisdiction.

The ‘settlor’ of the trust would transfer ownership of assets to the trustees. Trustees are appointed in terms of the Trust Settlement to administer the assets of the trust for and on behalf of ‘beneficiaries’.

A Trust protector may be appointed to represent the beneficiaries and to guide the trustees in the exercise of their discretion and in accordance with the Trust Settlement.

There is no legal requirement on the Isle of Man to register Trusts. Thus the identity of the Trust, its settlor and beneficiaries remain intact

In most circumstances, an Isle of Man Trust is not liable to any form of Isle of Man taxation provided all the beneficiaries are not resident on the Isle of Man.

What assets may be transferred into a trust?
Stocks and shares in quoted and unquoted companies
Investment portfolios
Real and intellectual property
Bank deposits
Life assurance policies

Offshore trusts offer many advantages, and some of their more common uses are:

Tax mitigation
Trusts are very efficient in reducing taxes arising on the assets placed in the Trust and provide an effective shield between the settlor, the beneficiaries and the Trust assets.

Protection of assets
The legal ownership of the assets are vested in the trustee and not the settlor and/or beneficiaries. This is particularly useful where the social and political climate can easily become unstable in the home country of the settlor and he or she wishes to place the ownership of his or her assets in a safe and stable jurisdiction.

Preservation of family wealth
Trusts are useful for preserving wealth and passing it intact through generations whilst at the same time allowing nominated beneficiaries to enjoy the benefits of that wealth. This is particularly important with assets that may not be easily divided between beneficiaries without losing some of their value, such as farming land.

Forced heirship
Some countries have punitive legislation dictating the manner of wealth distribution on the death of the owner. If the legal requirements conflict with the wishes of the owner of those assets, most assets could be transferred into an Isle of Man Trust to protect those assets.


Offshore trusts are extensively used by high net worth individuals to take advantage of tax and financial planning opportunities and are also used by individuals to protect and preserve family assets and wealth.

Typically a settlor would set up an Isle of Man Trust to benefit certain members of his family, charity, or for other specific purposes. The settlor may also be one of the beneficiaries and in certain circumstances also be one of the trustees. A Trust is established by the completion of a Trust Settlement, and the transfer of assets into the name of the Trust. Thereafter the Trust becomes the legal owner of the assets and the trustee is empowered to administer the Trust in accordance with the Trust Settlement.