Managing an offshore trust is a big deal, and it is important that you know who will be doing the managing well before you ever establish the trust. Once your offshore trust is created using a trust deed, you will no longer have direct control over the assets contained within.
For that reason, it is vital that you select a company you trust to manage the trust, provide for your beneficiaries and make the right calls to preserve the assets within the trust.
If you're ready to establish a trust but you need help narrowing down the options and selecting a company to help you manage said trust, be sure to consider each of the following points.
Experience Managing Trusts
Although there are many companies and financial institutions that offer trust management services to clients, make sure that you only work with those who have a proven track record already.
Also, ask about what kind of trusts each company has established and managed in the past. Not all trusts are the same, and you will want to find a company that has experience in your particular area. If you are establishing a trust with a few thousand dollars as a way to kick off your estate planning, and your beneficiaries are your family members, then a company with experience dealing with small family trusts could be ideal.
Conversely, those who want to create an LLC and place the assets of their trust within control of the corporation might need a different kind of expertise to manage the changing landscape and structure of this advanced type of trust.
Great Reputation Among Past and Current Customers or Account Holders
Even if a company looks great on paper or has an impressive website, don't be afraid to ask about customer satisfaction. Companies with the best trust management services often have a great reputation, and happy customers are willing to share just how great those services are.
You might also be able to find reviews online that bring up some of the pros and cons of a particular company. While a few reviews aren't sufficient in your decision making process, they can spark conversation or encourage you to ask specific questions when picking the best company for your trust.
Suitable Offshore Location
Two trust management companies that are seemingly identical in every way will vary significantly if they are located in two different destinations.
Offshore trusts can be established and managed from several destinations around the world, but you will want a company in a jurisdiction that is proven to be secure, private, free from government intervention and not volatile.
Belize is a popular destination because it ticks all those boxes and it even waives all capital gains taxes for foreign investors.
Reasonable Fees for Trust Management
If the management fees for your trust are expensive, the net worth of your trust could lessen over time. Therefore, it is integral to find a trust management company that can offer reasonable management and application fees for your offshore trust.
One way to find lower fees is to choose a management firm located in a country with a low overall cost of living. Belize, located in Central America, is a great choice for this reason.
When selecting a company to manage your offshore trust, there are several factors to consider. Keep in mind the fees, location, reputation and experience when comparing companies and making your final choice.