Cyprus International Trusts

Definition of a trust

A trust is an arrangement whereby assets, such as liquid funds or properties (both movable and immovable) are owned and managed by one person (or persons, or organizations, whether or not incorporated) for the benefit of another. A trust is created by a settlor, who entrusts some or all of his property to people of his choice (the trustees) for the benefit of certain specified individuals or entities. The trustees are the legal owners of the trust property (or trust corpus) and the beneficiaries are the beneficial owners of the trust property. The trustees owe a fiduciary duty to the beneficiaries and must manage and/or hold the trust property solely for the benefit of the beneficiaries.

Purposes

Trusts are most commonly used for tax planning purposes, privacy, spending protections, estate and will planning and protection from potential or actual creditors.

 

 

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