An international trust is a legal arrangement that allows you to set up an offshore asset protection structure. The trust is created in Kenya and the trustee and beneficiaries are all located outside of the country.
A Kenyan international trust is a foreign-owned trust which is formed under the laws of Kenya. It is also referred to as a foreign-owned trust or an offshore trust.
There are several types of international trusts and they vary in their benefits. Some international trusts are created for the purpose of avoiding tax, which is not something that a Kenyan trustee can do for you. There are also some international trusts that create financial accounts in offshore jurisdictions, which is not something a Kenyan trustee can do for you either.
The most beneficial type of international trust involves creating accounts in another country while still having your assets physically located inside Kenya. This type of trust allows you to avoid double taxation, but it also has other benefits such as helping you protect your finances from creditors and giving your family access to funds when needed—without paying taxes on them (in most cases).
Tax Benefits of an International Trust
U.S. citizens, as well as U.S. persons living outside the United States (U.S. expatriates), may be able to reduce their US estate tax exposure by establishing a Kenyan international trust or other international asset protection structure for their assets.
A Kenyan international trust has several benefits for U.S citizens:
A Kenyan International Trust is not a financial product but rather a structure for holding assets. It’s useful for people who:
Asset Protection of a Kenyan International Trust?
The main purpose of asset protection is to ensure that your assets are placed in an entity that is separate from other entities, so that if proceedings are taken against you, those proceedings cannot affect your ability to access the trust assets. The reason for this is simple: If someone successfully sues you or takes legal action against you, then it may be necessary for them to take money from the trust in order for them to satisfy their judgement. However, if there was no separation between yourself and the trust entity then this would mean that any money taken from it could also be used by anyone else who has access to it (such as family members).
Privacy in an International Trust?
Privacy laws differ between each country. It’s important therefore that when creating an international trust, one should consider whether they wish their details will be disclosed publicly or privately because depending on where they live may determine whether they need privacy protection which differs per country. For instance, Kenya does not have privacy laws, therefore, all information contained within a Kenyan international trust is public knowledge unless specifically stated otherwise; whereas England has very strict rules regarding the disclosure of information regarding its citizens, therefore, any international trust set up there must state clearly how much detail will be disclosed publicly versus privately. This can make choosing where best place to set up our Kenyan International Trust difficult depending upon what type of privacy protection needed
There are many reasons you might want to set up an international trust, including:
However, as a private trust, you can also expect privacy. A Kenyan International Trust will not require disclosure of any information about its beneficiaries or assets unless required by law.
A beneficiary is a person or organization that the trust is designed to benefit. In most cases, beneficiaries will be individuals (such as yourself), but they can also be charities or organizations. Beneficiaries of an international trust will typically be named in the trust agreement itself and may also be listed in a separate document called the “schedule”.
If you are a beneficiary of a Kenyan international trust, it is important to understand what your role is and how the trust works. A key responsibility of beneficiaries is to follow the instructions in the trust document. This may include reporting their progress in carrying out the instructions to their trustee on an annual basis or as required by the trustee. Beneficiaries are also expected to comply with any other conditions set out in their trusts including paying taxes on income they earn using funds from within the trust, maintaining adequate insurance coverage, etcetera. In addition, if there is no provision made for beneficiaries who fail or refuse to carry out their obligations under these terms then they remain liable for any tax liabilities incurred during this period.
An international trust is a legal entity that can own assets. It’s beneficial because it provides privacy and can be used to protect your assets from creditors. For example, if you’re a celebrity or politician, you may not want your financial information publicly known. Additionally, trusts are useful in protecting your money from lawsuits or other legal claims made against you by someone else (a spouse, ex-spouse, or child). This allows the trustee of the trust (the person who manages it) to decide where the money goes without interference from other parties involved in litigation against them.
We can help with setting up an international trust for you if it makes sense for your situation. Feel free to get in touch with Diaspora Freedom Initiative at [email protected] for more information.
We’ve covered a lot of ground in this article, but we hope that you now have a better idea of what international trusts are and how they might be useful to you. If you’re still unsure about whether an international trust is right for you, please contact us at [email protected]
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