Every individual wants to protect and build assets for its future generation.
Passing on the assets and wealth to the next generation not only makes them more durable but also helps to continue the same legacy over the years.
Most of the business investors prefer to transfer their wealth to their future generations by various means like gifting a property, setting up an International Business Company (IBC) to transfer the assets, etc. However, these criteria are met where the individuals are fit and stand as an adult.
So, how about an investor who wants to transfer his property to his newborn child or grandchild who is physically or mentally disabled, or are differently-abled.
Is it possible to transfer the available business assets to secure their future similarly? Well, the answer is Yes!
According to the laws of the offshore business, the concept of Special Need Trust allows the business investors to support their differently-abled future generation or minor through financial assistance.
If you want to leave your property for your loved one who is suffering from such challenges, you can proceed ahead with Special Need Trust.
The Concept of Special Need Trust
In legal terms, a Special Need Trust can be stated as a business entity that holds an exclusive agreement that allows the disabled beneficiary to enjoy the benefits of the trust held in his name.
It is an irrevocable trust that stands under the Common Law, and can be equally used for minors. These can also be used as asset reservoirs to receive the inheritance settlement.
Now, before you proceed ahead, you need to understand the mechanism behind the entity and needs to plan carefully. Let’s have a look at the structure of a Special Need Trust Company.
Structure of a Special Need Trust
Opening a Special Need Trust entity in an offshore jurisdiction, involves the following elements for the completion of the structure:
- The donor (one who is responsible for funding)
- The trustee (one who administers and holds the funds on the basis of the donor)
- The beneficiary (one who can be called as the recipient of the funds)
Types of Special Need Trust
Now, when you are well-versed with the structure, you need to understand that there are different options which you can consider while setting up a Special Trust Company.
- First-party trusts (also called as self-settled trusts)
- Third-party trusts
Apart from the above mentioned, the investors also have an option to proceed with Pooled Trusts, which is another type of SNT driven by the non-profit organizations.
How to Start a Special Need Trust?
To start towards incorporating a Special Need trust, you can proceed towards the following steps:
- Select a certified business consultant like Business Setup Worldwide who can assist
- Once approached, a busines advisor will be assigned
- Relevant documents regarding the identity and address proof needs to be submitted
- Once submitted, the documents will be verified by the relevant government authorities
- After the verification process, the licensed gets issued
- Also, you need to open an offshore online bank account to proceed with the transactions
Establishing a company for the purpose of safeguarding your future generation involves severe brainstorming, planning, and strategy building as it involves enormous investments along with time, one of the critical assets.
As these processes take time, it is essential to note that the business paperwork needs to be cleared in an error-free way.
The experts at Business Setup Worldwide are well-versed with the offshore company setup process and has been helping the business investors to set up their offshore company at ease.
Our business advisors hold industry experience, and that’s what make them skillful at providing tailored solutions suiting the business needs of the investors.
Seeking an expert opinion turns out to be a boon for any business. It can be easily understood by going through the Four Core Reasons for Hiring an Offshore Business Consultant.
If you are looking forward to setting up a special need, trust, feel free to have a word with our experts. Contact us today-we’d be glad to assist.