The Isle of Man offers wealthy families a politically stable, well-regulated and practical base in which to establish wealth and business succession planning structures. Modern and robust legislation, highquality professional advisers and service providers, and a reputation for cost-effectiveness, all contribute to the island’s attractiveness as a trusts jurisdiction. Isle of Man trusts are used to achieve many objectives, including:
- Family provision and wealth preservation;
- Business succession planning;
- Protecting assets against personal liability;
- Tax mitigation;
- Charity and philanthropy;
- Pensions and employee benefit schemes; and
- Orphan ownership vehicles in the context of financing transactions, securitisations or private trust company structures.
Manx trust Law has its roots in English Law. It is based on common law principles, supplemented and enhanced by legislation which, for the most part, mirrors its English equivalents. The decisions of the English courts are highly persuasive in the Manx courts and the Judicial Committee of the Privy Council is the highest court of appeal for the Island.
A trust arises out of the separation of the legal title to property and the right to enjoy or benefit from that property. It involves one person (the settlor) transferring the ownership of property to another (the trustee) to hold for the benefit of a person or class of persons (the beneficiaries) or for a specific purpose. In most cases, the settlor expresses the terms of the trust in a document (the trust deed) and the trustees must administer the trust in accordance with those terms and with the Law. A Manx trust is not a legal entity; all the business of the trust is carried on by and in the name of the trustees.