A Trust comes into existence when an individual or a legal entity (Settlor) gratuitously transfers the legal ownership of assets (Trust Property) to another person or persons (Trustees) to hold for the benefit of other person(s) termed as the Beneficiaries or for a specific purpose. The trustees have an equitable obliga- tion, which bind them to hold and deal with the trust property in accordance with the terms of the trust.

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The Seychelles Trust provides a legitimate means to protect one’s assets against personal liability, high taxes, exchange controls or risk of confiscation. Confidentiality is ensured through the absence of non-dis- closure requirements as regards the Settlor or Beneficiary.

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Trusts in Seychelles are governed by the Seychelles Trusts Act 2021, (the Trusts Act) which allows for life interest / contingent interest trust, protective or discretionary trust, employee benefit trust, charitable trust, purpose trust or foreign trust.

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Why the Seychelles Trust?

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A Seychelles Trust gives the Settlor the requisite protection & comfort for a long term wealth management under the Trust. Family assets are preserved over generations with most tax efficiency, succession laws, forced heirship rules, probate and other hurdles are avoided. Once a Trust is set up it can own companies to own and manage any family business or wealth.

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Key features of a Seychelles Trust

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• Choice of proper law by the Settlor

• Possibility for the Settlor to leave on or before his death letters of wishes setting out how he/she would wish the trust to be administered

• Anti-forced heirship rules

• Recognition of Purpose Trusts

• Perpetual Duration

• Possibility to accumulate income for any period during the duration of the trust

• No perpetuity rules for Charitable Trusts

• Trust instrument may contain power to vary terms of trust.

• No disclosure of the trustees’ deliberations, the name of the Settlors and the Beneficiaries unless there is an order from the court for the purpose of enquiry relating to trafficking of narcotics & dangerous drugs, arms trafficking or Money Laundering.

• Trusts not being void or voidable due to the insolvency of Settlor or proceedings against him or latter being declared bankrupt. However, such trust may be void if the creditors prove beyond reasonable doubt that the intention of the Settlor at the time of creating the trust was to defraud him. The onus of proof of the intent to default rests on the creditor but no action can lie against the trustee of trust after more than 2 years from the date of transfer or disposal of assets to the Trust.

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Trust Assets: What can be held in a Seychelles Trust?

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• Real Estate (Commercial or Residential),

• Shares in companies, funds, unit trusts,

• Investments,

• Insurance policies

• Other assets

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A Protector: do you need one?

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Under the Trusts Act, a Protector can be appointed, whereby the consent of the protector is required by the trustee before taking certain administrative and / or dispositive decisions. The appointment terms and the powers of the protector should be explicitly set forth in the trust deed or other appointment instrument in order to maintain the formalities required by the Trusts Act.

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Trust Migration

 

Trusts can migrate to and from Seychelles. For example Trusts in Jersey, Guernsey / Isle of Man & other jurisdictions can migrate to Seychelles and vice versa. The tendency over the last 5 years has been for trust to migrate to Seychelles because of various benefits.

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Trust Registration & Confidentiality

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Registering a trust with the authorities in the Seychelles is very straightforward, simple process, and in no way affects the confidentiality of your trust.

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