Trust is a concept derived from Anglo-Saxon idea and is existing from millennia. The main object of the trust is to regulate the family wealth and the same is accomplished by transferring assets to the trusted friends or other parties to shield the assets from spendthrift heirs or seizure by third parties. Moreover, from the last 60 years, creation of trust has been expanded to cover business transactions and widely utilized as a significant tool in international estate, inheritance and tax planning.
The trust is created by the settlor, and he appoints the trustee who can be an individual or corporate entity liable to keep the assets of trust secure and to transfer it later to the beneficiary. For better understanding the diagram is mentioned below:
Thus, the above-mentioned diagram clearly depicts the functions between all the parties involved in the trust. Moreover, there are various forms of trust it depends upon the settlor to opt accordingly as per his/her choice.
There are various benefits of establishing Trust in UAE as it helps in protection of your assets from lawsuits and lessen the liability of tax. Moreover, it also helps to avoid the probate procedure wherein judge distributes assets to the parties in will. Therefore, the use of a trust may improve the sometimes-needed flexibility in succession and inheritance planning. The settlor has considerable latitude in determining beneficial rights. Furthermore, a trust is meant to preserve property rights; the trust streamlines estate transfer to future generations as well as asset restructuring and diversification. The property and other assets given to the trust are not the settlor’s property and cannot be taken away or adjudicated upon (e.g., by divorce).
Nour Attorneys Law Firm is a team consisting of highly qualified legal consultants and taxation experts which has extensive experience in establishing trust and advising in relation to the benefits emanating from the development of trust. In UAE creating trust is not an easy task because as per UAE Trust Law, trust can only be created by limited means such as Trust by document, Trust by will, Trust by transfer or property, Trust established after the permission of competent Court. Therefore, it is important for you to seek a good advice in relation to the establishment of trust or trust deed/agreement.
Nour Attorneys Law Firm ensures that your wealth and assets are preserved and protected by providing them long-term security. Thereby, it is very important to provide correct and adequate advice to avail all the benefits emanating from trust and to avoid any dispute for future. Therefore, drafting skills plays an important role and a good drafting skill can safeguard the interest of all the parties for a longer time. In drafting trust agreement, the draftsman must be very careful and must bear in mind how to deter the other party so that breach in agreement can be avoided.
In case if you need any suggestion or help in relation the matters related to any form of Trustee Services you can contact us freely. Our team is fully committed to perform their duty and in delivering out the positive results.