Through an arrangement with a leading
International Trust and Corporate Service Provider, Dierrepi Consultingis
pleased to be able to offer their clients an effective means to protect
their assets while still allowing the control required to direct the
course of their investments. Dierrepi Consultingbelieve that in developing
your wealth you should not have to surrender control in order to ensure
those who would like to take it away are kept at bay. SACCIP gives each
client the very best in asset protection, international investment options,
and financial secrecy. By using the SACCIP you will have the capability
to conduct banking, investment, insurance, trust and corporate business
all in a highly secure and confidential environment.
Diagram 1: The Structure
The basic structure establishes an Isle of Man Trust, one of the premiere
and oldest offshore jurisdictions in the world, which owns a 100% interest
in a Nevis International Business Corporation, Nevis is a tax friendly
jurisdiction where offshore corporations are subject to zero tax. The
corporation, in turn, holds bank accounts, in jurisdictions with strict
confidentiality regulation, conducts investment activities and buys
insurance under the direction and supervision of the trust. Thus, the
offshore strategy extends to a minimum of three offshore jurisdictions,
giving each client a high level of confidentiality, security and flexibility
in making offshore investments.
Diagram 2: Role of the Client
The client maintains reasonable control over the trust assets as a manager/director
of the company. The Trust is settled (established), the Trust then establishes
a corporation that is 100% owned by the trust and the client or whomever
he wishes is the Director or the Manager of the Corporation. Assets
are moved from the Trust into the Corporation for Investment. Further,
the client may also be named as a beneficiary to the trust, and may
receive distributions from the trust property, or income derived from
the trust property, in the future. This occurs when the Corporation
pays dividends to the Trust and the Trustee makes a distribution.
Diagram 3: Maintaining separation of ownership
Diagram 4: Getting money out
As the Manager/Director of the Nevis International
Business Corporation, the client will have the ability to establish
Bank Accounts, Investment Accounts and other vehicles for wealth management.
Through these Bank Accounts the client will have access to a Corporate
VISA/Debit Card. This card can be used to pay for company related expenses.
Furthermore, as a beneficiary of the Trust when dividends are paid back
into the Trust, a distribution can be made by the Trustee to the Beneficiaries.
Key Elements of SACCIP
1. The Offshore Trust
A trust is a legal entity with its own
property distinct from the assets of the individual behind it. A trust
is established by transferring the assets to an independent third party,
the trustee. The trustee then manages the assets on behalf of other
individuals, the beneficiaries.
It is important to understand that trustees
not only should, but are obliged to manage and control the trust property
independently for the benefit of the beneficiaries in accordance with
the trust deed. If a settlor maintains defacto control of the assets
through control of the trustee, it could be deemed that the trust is
a sham, and thus invalid.
By transferring assets into a trust an
individual is removing them from the reach of potential creditors and
others who may attempt to gain some interest in the individuals assets
in the future. The wealth generated from these assets is also out of
reach of these same parties. Furthermore, the wealth generated by the
trust is taxable in the domicile of the trust, in this case the Isle
of Man, a tax friendly jurisdiction, and not taxable in the hands of
the original owner of the property until it is repatriated. As tax laws
vary from jurisdiction to jurisdiction we strongly recommend consultation
with a domestic tax advisor before establishing a SACCIP solely for
The legal document establishing the trust
is not registered with any government agency thus ensuring confidentiality.
Establishing a trust offshore as opposed to onshore yields several distinct
advantages, such as enhanced asset protection, guaranteed confidentiality
and reduced taxation income from trust assets.
2. The Offshore Corporation
An offshore corporation is like a domestic
corporation in that it has a distinct legal personality. It can be sued
and sue in its own name, and the shareholders personal assets are separate
and distinct from the assets of the company. It is, in effect, an artificial
person that protects the principals behind the company through the concept
of limited liability. The corporation is often used to hold bank accounts,
credit cards, property, purchase goods and services, enter into contracts,
trade securities, and perform any other financial transaction in its
own name rather than through the name of its owners. Thus, the principle
benefit of an offshore corporation is similar to that of an onshore
corporation, that is a layer of legal separation between a company,
the people behind it and the business it conducts.
The offshore corporation forms a valuable
part of the SACCIP; the offshore corporation acts as a conduit through
which the client maintains limited control of assets owned by the trust.
Remember, the trust owns all the shares in the company, and the company
is managed by the client. Trust assets flow to bank, brokerage and insurance
accounts held by the company, and the client manages those assets by
virtue of his position. The company also serves to add an additional
layer of confidentiality to the structure.
Getting started is relatively simple:
The Offshore Trust:
a. Select a Name for the Offshore
b. Identify the beneficiaries of
the trust. In regards to the beneficiaries, even though the Trust Deed
in this case is not registered with any government body, it is often
filed with the banking institution that the wholly owned corporation
decides to open a bank account. Many banks require a due diligence package
on the beneficial owners of the bank account and in the case of a corporation
owned by a trust they wish to have the package on each of the beneficiaries
of the trust, it is these people that the banks consider
to be the beneficial owners.
So in the case of adult beneficiaries the
following will be required:
- Notarized copies of passports, or in the event of an individual without
a passport notarized copies of a social insurance card and photo identification
such as a drivers license;
- Two professional references including one from a financial institution;
- Copy of a utility bill, confirming residency.
Regarding child beneficiaries a declaration
that they are the children of an adult beneficiary including their dates
of birth and current residence.
c. Letter of Wishes stating that
it is the clients wishes that the trustee establish a corporation in
the jurisdiction of Nevis, that the (named) individual be the Director,
President of the corporation and at the trustees discretion assets be
moved into the corporation. Note, if the Director is a different individual
than any of the beneficiaries a due diligence package as outlined above
will be required.
d. Name of the Protector (Optional),
it is possible to appoint a protector who exercises some degree of control
over the trust property. It is generally unwise for the protector to
be given anything other than negative powers as this may mean that the
protector is viewed as a trustee. Therefore, it is recommended that
the Protectors powers be limited to veto. However, many opt not to appoint
a protector in the SACCIP as it gives powers to beneficiaries. In the
format of the SACCIP much of the control of the asset lies in the hands
of the client, by appointing a Protector it is possible that the other
beneficiaries can gain limited control by asking for the Protector to
intervene on their behalf.
The Offshore Corporation:
The name of the Offshore Corporation, it
is wise to provide at least three names to ensure availability, list
the names in order of preference. Further, as discussed above if the
Director is someone other than the beneficiaries a due diligence package
will be required in the event that accounts are to be opened in the
name of the Corporation.