A trust can be created during a person’s lifetime and survive the person’s death. A trust can also be created by a will and formed after death. Once assets are put into the trust they belong to the trust itself, not the trustee, and remain subject to the rules and instructions of the trust contract. Basically, a trust is a right in property, which is held in a fiduciary relationship by one party for the benefit of another. The trustee is the one who holds title to the trust property, and the beneficiary is the person who receives the benefits of the trust. While there are a number of different types of trusts, the basic types are revocable and irrevocable.
Legal benefits of creating a Cyprus International Trust:
- A Cyprus International Trust can be used as an asset protection vehicle as it is immune from forced heirship and claw back rules in other jurisdictions where the assets are located;
- A Cyprus International Trust does not become void even where the Settlor becomes insolvent or bankrupt;
- A Cyprus International Trust which was set up after 2012 has no limit on the period over which it is valid and enforceable;
- When a creditor contemplates that the Settlor used the Cyprus International Trust to defraud him the burden of proof is upon the creditor to prove such a sham within 2 years of creation of the Cyprus International Trust. After the 2-year period the creditor will be barred from bringing an action against the trustees.