Classic Trusts
Discretionary Trust is an extremely flexible vehicle where the Trustee has broad powers to administer the trust assets in the best interests of the beneficiaries, with the creator of the trust (known as the ’Settlor’) providing separate guidance to the Trustee as to his / her wishes.
Specific Planning Trusts
Reserved Powers Trust is where the Settlor can reserve certain specified powers in relation to the trust fund; e.g. to give direction to the Trustee as to investment of the trust assets or the power to appoint or remove a trustee or beneficiary. The extent to which powers can be reserved is dependant on the Settlor’s residence and personal circumstances.
Purpose Trusts are used to advance specific, non-charitable purposes, rather than for the benefit of individual beneficiaries, with an ’Enforcer’ appointed with the power to compel the Trustee to carry out their duties under the terms of the Trust. A Purpose Trust is normally used in conjunction with Private Trust Companies (see below), as part of a large investment/structuring transaction, or to hold ’orphan’ assets.
Philanthropic or Charitable Trusts can be created with the same aims as the UK Charitable Trust, although if created for an international client using Jersey or Guernsey, unlike in the UK, there is no need to register the trust with a Charity Commission.
Carried Interest Trusts are for investment professionals who are entitled to a performance related share of the profits of investment funds they manage (the "carried interest"), with payment due once the underlying assets of the fund have been realised, provided a predetermined ’hurdle rate’ has been exceeded. The trust acts as an excellent holding vehicle for the carried interest rights during the investment period and assists with an efficient realisation of the profits at the end of the investment term.
Corporate Solutions
Managed Companies are where we provide a fully managed service, including Directors, Company Secretary and Registered Office and these Companies are used to acquire and hold UK or international assets in a confidential and tax efficient manner.
Intellectual Property and Media Rights Companies are where intellectual property rights (such as image rights, trademarks, etc), have been developed or acquired these can be assigned to a specially incorporated managed company which will focus solely on the exploitation and protection of the rights.
Private Trust Companies are set up when the type of assets (e.g. group of family trading companies) or the quantum of the assets (e.g: large, diversified family network of interlinked asset base) requires a more singular and commercially-orientated approach. This may not be possible with a corporate professional Trustee however a Private Trust Company can be created to act as Trustee of a single trust or a group of related family trusts.
Special Purpose Vehicle is a company that is incorporated to fulfil a specific or narrow set of objectives, such as holding a particular asset or class of assets, enabling large complex international transactions or facilitating securitisations.
Other Solutions
Foundation is a private legal entity, with its own legal personality, set up for charitable or non-charitable purposes, which is administered by a council of members under contractual principles.
Partnerships can take the form of limited, limited liability or incorporated limited partnerships and are used mainly for a large business investment and/or real property development transactions.
Contact us to arrange for a discussion with our fiduciary specialists about your individual requirements;
Sarah Hanna Tel: + 44 (0) 1534 613082 Email: Sarah.Hanna@kleinwortbenson.com