A Trust is a legal concept, which originates in medieval English law. Today this concept is firmly established in many countries around the world. This arrangement allows an individual (the "settlor") to transfer assets to a third party (the "Trustee") to be administered for the persons chosen by the Settlor (the "beneficiaries") in accordance with the provisions of a document (the "Trust Deed").
A Trust is one of the most secure and flexible financial planning vehicles available. It allows you to make long-term plans for the distribution of your wealth both during and after your lifetime in precisely the manner you wish. A Trust can also be one of the most effective tax-planning tools, especially in respect of estate or inheritance taxes.
The management of your assets will not be interrupted, on your death, by probate or other formalities, since this will continue to be held and administered by the Trustee in accordance with the provision of the Trust Deed. It can provide confidentiality and it can protect assets from expropriation or forced heirship.
In Cyprus, Taxation of International Trusts is abolished completely and the only tax obligation is a stamp duty on the instrument creating the Trust. Changes in the Law in 2012 now allow for the settlor (and beneficiaries) to be Cyprus resident and for the Trust to hold immovable property in Cyprus.