Guide to Benefits of an International Business Trust
Establish an International Business Trust for a low-cost and confidential international offshore business entity.
By Phillip Fry
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Dating back to Eighteenth Century England, a business trust is a business organization or entity created and formed in a written trust contract (agreement) that sets out the purposes, terms, and conditions of the trust. The business trust is a legal entity and an artificial individual, with rights almost equal to a natural person (a human being), able to own property and conduct business like a natural person.
An international business trust is a business trust organized and domiciled in an asset haven such as Belize, Vanuatu, or the Seychelles
An international business trust is ideal for operating an international business in a private and confidential manner and for doing international trading of both goods and services with businesses and other customers located in the USA, Canada, the Caribbean, Central America, South America, Asia, Australia, New Zealand, Africa, the Middle East, and Europe
An international business trust is created in an asset haven and it is funded by one or more persons (creators or transferors) transfer the legal title of property, capital, and/or a business to trustee(s) of the international business trust, with power vested in the trustee(s) to manage and control the property, capital, and/or business and to pay the profits of the enterprise to the creators/transferors of the trust and/or their heirs, assigns, and successors.
The trust certificates are personal property which convey neither legal title to the trust property nor any voice in the management of the business trust or the selection of trustees.
Top Twelve Benefits of Establishing and Utilizing an International Business Trust
1. In sharp contrast to a corporation that is created by the state as a privilege (and therefore subject to having its corporate benefits diminished, limited, eliminated, or heavily taxed by the state government}, the existence and operation of a business trust are controlled by its contract, not by ever-changing state corporation laws, regulations, and court decisions.
2. An international business trust is a powerful entity by which individuals may combine their resources to operate a business for profit without the inherent liabilities of a partnership or the double taxation of corporations.
3. Like the initial funding of a new corporation, there is no income or transfer (gift) tax to put initial assets into a business trust (structured to be like a corporation in the initial funding process) because the transferor of the assets receives back a proportionate share of the trust certificates.
4. If so established in the trust agreement, the trust certificates become void upon the death of the holder and, thus, have no value to be subject to inheritance tax, estate tax, or probate administration and expenses.
5. Because the international business trust assets do not go through the probate nightmare at the death of trust certificate holder, a business trust and the decedent's trust certificates cannot be challenged by persons falsely claiming to be heirs or by creditors of the deceased person.
6. Whereas corporate officers and directors (and sometimes shareholder names) and financial dealings are a matter of public record and detailed annual reports, international business trust affairs are private and not a matter of public record. International business trust privacy and confidentiality are very enhanced when the trust is created and domiciled in an asset protection haven such as Belize, Vanuatu, or the Seychelles.
7. International business trust property cannot be seized by creditors' attachment nor sold upon creditors' execution for the trustees' personal debts. Personal liability of a trustee cannot be enforced against the trust property. International business trust asset protection is extra strong against creditor problems when the trust is created and domiciled in an asset protection haven such as Belize, Vanuatu, or the Seychelles.
8. Trust certificate holders cannot be held liable for debts incurred by the trust itself. The certificate holders are not personally liable for any obligations incurred by the trustees or by managing agents appointed by the trustees.
9. International business trusts can provide needed flexibility in arranging lender financing.
10. An international business trust can be formed by utilizing the basic contract laws of most states, provinces, and nations, including asset protection havens such as Belize, Vanuatu, or the Seychelles.
11. A business trust is very helpful as the legal foundation for an effective internet business company, the innovative and new international business organization entity for the management of international business. An international business trust located in Belize, Vanuatu, or the Seychelles is especially ideal as the business structure for an internet business company.
12. An international business trust can be the transferee/annuity payor pursuant to a private annuity agreement.
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