A fiduciary is an individual or organisation with a legal and ethical responsibility to act in the best interest of another party.
Sometimes, a friend or family member takes on the role. While this may work for some, choosing a professional fiduciary, particularly for the management of a trust, can ensure expertise, and neutrality.
Other issues to consider when looking at trust management include:
- Regulation
Abacus Trust Company Limited (“Abacus”) is licensed by the Isle of Man Financial Services Authority, which provides a regulatory framework that offers a high degree of protection and peace of mind. Professional fiduciaries must adhere to regulation designed to prevent mismanagement, providing a level of security family or friends cannot.
- Commitment
Abacus has built a reputation for offering a market-leading service for the establishment and management of trusts. Our fiduciary duty is performed objectively without any personal bias. Family and friends may have the best intentions but the absence of professional standards, qualifications and oversight can lead to unintended complications.
- Oversight
Abacus has worked hard to acquire a broad base of expertise and experience in this field. We make informed and timely decisions whilst navigating a complex and ever-changing regulatory landscape. Despite their best efforts, family and friends do not usually have the knowledge required to stay abreast of these changes and their implications.
- Collaboration
Abacus understands the loyalty, obligation and responsibility required in our role as professional trustees. As such, we regularly collaborate with accountants, lawyers, tax advisers and other professional advisers to achieve the best outcome for our clients. The level of detail required is something a family member or friend is unlikely to achieve.
- Advantages of an Isle of Man trust?
∗ No capital gains
∗ No inheritance, gift or estate taxes
∗ No income tax for non-resident beneficiaries except in limited circumstances
∗ There is no restriction on the accumulation of income
∗ Privacy
∗ The ability to appoint a protector to provide an additional layer of oversight for the settlor
∗ Robust tool for asset protection
∗ Flexibility in managing and distributing assets
∗ Effective tax planning opportunities
∗ Recognised in all common law jurisdictions
∗ Smooth setup process
∗ No government fees.
No action should be taken on the basis of this note, nor should it be construed as amounting to tax, legal or VAT advice. Suitable, specific and professional advice should always be obtained in respect on any particular issue.
