PAM Guide to Wealth Management

Trust and fiduciary services providers

Another core part of wealth management is the use of trust and fiduciary companies to structure your wealth. These can be important in consolidating global assets in one location, as well as mitigating tax and for succession planning. This includes using trusts, foundations and other structures as a way of managing how and when your assets are passed to your beneficiaries and to protect against the expense and time of the UK probate process.

A trust is a legal agreement between the person (settlor) who creates the structure and the person or institution (trustee) who administers the trust. The trustee manages the assets within the trust for the benefit of a third party, the beneficiary.

Another increasingly popular vehicle for an individual's assets is a foundation. More common in civil law jurisdictions, foundations have become an attractive alternative to trusts. Similar to both a company and trust in that it is a body corporate that is for the benefit of one or more beneficiary, a foundation differs as it is a unique structure designed to fulfil a specific purpose.

Foundations are popular with individuals from civil law jurisdictions and are flexible. Both Jersey and Guernsey as common law jurisdictions introduced foundation law in 2009 and 2012 respectively.

Often, the more complex your financial affairs, the more sophisticated the structuring and planning required. This will involve consulting a lawyer, as well as a trust company, because of the legal issues that are likely to arise in such a situation.

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The PAM Directory is a comprehensive guide on comparative data focusing on asset managers, investment managers, private banks, stockbrokers, wealth managers and multi-family offices, who provide discretionary and/or advisory portfolio management services for private clients.

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