Isle of Man trust questions, answered

The trustee holds title to the assets and administers them under the deed. That means records and accounts, meetings when a decision is due, and identity checks renewed over time. When work is done in the Isle of Man, a local partner takes a defined role in the structure.

The settlor funds the trust. Its beneficiaries may be named one by one or described as a group, such as the settlor's grandchildren. A purpose trust is the exception: no beneficiaries are named, and the assets are held to carry out a stated purpose.

A will works only from death and usually goes through probate. A trust begins in your lifetime, and the trustee keeps the assets under the deed whether or not you are still alive. Many families use both, and your lawyer explains how they sit together.

Not at all. A company is its own legal person, with shareholders and directors. A trust is a relationship, in which the trustee owns assets for the beneficiaries under the deed. Trusts often hold companies, and a family may form a private trust company as trustee.

The letter of wishes is the settlor's note on how they would like the trustee to exercise discretion. It does not bind the trustee, who can adapt as circumstances shift. You may revise it at any time, and every version is filed with the trust records.

An Isle of Man trust can hold cash, listed investments, shares in a family company and property, among other assets. The trustee asks for evidence of where each asset came from and how it is held. Isle of Man counsel and your own advisers confirm the steps for each asset.

An Isle of Man law firm writes the deed, and you review the draft with your own lawyer. We give our view on how the trustee runs the powers it sets out, so the text fits real practice. You sign once you are satisfied.

Yes, family company shares are a usual trust asset. The trustee wants the incorporation papers and the share register so that ownership and control are clear. Shares in an operating company raise different points from listed securities, so let us know early which you hold.

Sometimes it can. A new trustee normally takes over by a deed of retirement and appointment under the trust's governing law, and your lawyer confirms how that applies to your deed. Another route keeps the present trustee in place, and we coordinate the papers and reporting with it. Send the deed and we will point to a likely route.

Often yes. A settlor can keep certain powers, such as directing investments. How far that works under Isle of Man law is a point your lawyer confirms, and it depends on the wording of the deed. The other route is to appoint a professional manager.

A discretionary trustee decides who receives what, and when, with your letter of wishes in mind. Minutes record the decision. If a beneficiary asks for a payment, the trustee weighs the request against the deed and the situation as it then stands.

That depends on the powers the deed contains from the start. Many deeds let the trustee or a protector add or remove beneficiaries. Without such a power, a change could need a court or the consent of those affected. Your lawyer reads the deed and advises.

The trust does not end when the settlor dies. It runs on under the deed, with the trustee administering it for the beneficiaries. Assets located abroad are governed by the law there, so advisers in each country should confirm the position.

The trustee collects tax residence forms and reports wherever the rules require. The Isle of Man takes part in automatic exchange of tax information, and whether a particular trust reports depends on its structure, which we confirm in writing. With your consent, we send the report to your tax adviser.

No. A trust is neither a hiding place nor a route round every rule. Banks, tax authorities and the trustee need to know who is behind it. Your own tax turns on where you live, and your adviser explains it.

When work is carried out on the Island, a local partner takes a defined role in the structure and runs its own checks on you. Your engagement letter records which role it holds and what it does for your trust.

Send a short description of what the trust should do, the assets involved and the countries concerned. You receive an estimate that is not a binding offer, and we confirm it only after reviewing the documents and assets. The set-up fee for a standard trust or foundation is on the costs page.