Has anyone any experience of offshore trust funds and how they are considered in regards to the financial settlement?
Let me explain the situation. I own my own company. We setup an offshore trust called an Employee Benefit Trust and transferred money to it. This was then converted into a sub-trust where myself and my family are the sole beneficiaries. This has been done for tax reasons because the money moved to trust comes off the profit/loss and therefore there is no tax to pay on it. Technically I no longer have any claim to this money. I have no ownership of this money. I have had to sign this over 100% to the trustees of the trust fund. They technically can do whatever they choose with the money. However, as sole beneficiary, in practice the purchases of this trust fund are done to benefit me.
What is the legal position with this trust in regards to settlement? As it comes off the profit/loss then it makes the profit of the company look lower so my income looks lower. Do I declare the net profit of the company (with the deduction for payment into trust) or do I have to declare a profit figure that includes the money paid into the trust? Also, do I have to declare this as an asset as I no longer am able to access this money and have no claim to it; it technically belongs to the trustees and no longer belongs to me.