In keeping with its name, Independent Trustee Company is trustee of thousands of trust structures.  These are principally, of course, pension trusts and associated arrangements, such as the unit trusts used for some pension arrangements and scheme investments.  A lesser known aspect of ITC’s work is as trustee to private trusts.  

The law relating to trusts began its development in England during the crusades.  A knight going to fight in the Holy Land might convey his land to a trusted associate to look after in his absence.  Unfortunately, on his return the “real” landowner could encounter a refusal by this now untrustworthy associate to re-convey the land to him.  At first the courts could not, and would not, help.  However, over time the principle of “equity” was established and the courts began to recognise the claim of the returning crusader.

Nine hundred years later trusts continue to be a valuable structure in our legal system and have many uses, both in the commercial and private fields.  

Trusts often are perceived as being highly complicated structures located in obscure jurisdictions and put in place for tax evasion or aggressive tax avoidance.  While there is clearly an element of this with the offshore trust industry, the reputation is largely undeserved as in essence the concept of a trust is simple and the benefits a trust can provide are considerable.

A trust will exist where someone (the settlor) gives property of any kind to one or more persons (the trustees) to hold for the benefit of others (the beneficiaries).  There are, of course, different types of trusts and the rules governing them can be complex, but the essential concept remains the same.

First and foremost, trusts are asset-owning vehicles which can provide for both current and future generations.  They may be created for many reasons, such as family protection and long-term wealth preservation.  In part 2 of this short series of blogs on private trusts, we will examine some of their uses.

If you would like further information on any of the points raised above, please contact either Jeremy Mitchell or Barry Kennelly in ITC Consulting at jeremy.mitchell@independent-trustee.com and barry.kennelly@independent-trustee.com or call 01-661 1022.

*Please note this content is the view of the author and not of Independent Trustee Company