The raid on Cyprus’ depositors in March 2013 precipitated our trustee service to the public.
Historical capital levies of the world
There are recorded capital levies by the ancient Greeks ranging from 1% to 4%.
There is no recorded (read “legal”) capital levy before Word War I.
|Date||Country||Type of asset||Rate|
|1919||Germany||Real estate||from 10% to 65%|
|1920||Italy||Real estate||from 4.50% to 50%|
|1920||Czechoslovakia||Real estate||from 3% to 40%|
|1921||Hungary||Real estate||from 5% to 20%|
|1946||Japan||Real estate||from 10% to 90%|
|1990||Brazil||Financial (bank deposits)||100% from US$1,250|
|1992||Italy||Financial (bank deposits)||0.6%|
|2001||Argentina||Financial (deposits in foreign currencies)||100%|
|2009||Ireland||Financial (funded public pension fund)||25%|
|2010||Ireland||Financial (funded public pension fund)||12%|
|2010||Hungary||Financial (private pensions)||100% (nationalization)1|
|2013||Cyprus||Financial (bank deposits)||100% over 100,000 EUR, affecting 2 banks|
Overview of legal bank guarantees
|Entity||Deposit guarantee||Foreign currency covered|
|EU2||100,000 EUR (or equivalent for non-Eurozone countries)||No|
|Isle of Man||100% of the first £30,000, 90% of the next £20,000 with a MAXIMUM Compensation of £48,000.3||Yes|
|Channel Islands (Jersey and Guernsey)||£50,000 per person, per banking groups4||Yes|
|Palau||US$250,000 (from FDIC USA)||No|
|Micronesia||US$250,000 (from FDIC USA)||No|
|Marshall Islands||US$250,000 (from FDIC USA)||No|
|Hong Kong||HKD 500,000||Yes|
Trend of public confidence in the US
Our solution: a trust
Although the legal bank guarantees provide some kind of safety net, they are unfunded in case of a systemic crisis6.
The trust is a wonderful invention that gives a legal structure for:
- fast set-up: usually in 2 business days
- flexibility: you can make up any possible rules of management, settlement, investment, events, etc…
In our view, only Hong Kong gives a legal guarantee against capital controls, through its Basic Law (mini-constitution) valid until 2047.
No foreign exchange control policies shall be applied in the Hong Kong Special Administrative Region. The Hong Kong dollar shall be freely convertible. Markets for foreign exchange, gold, securities, futures and the like shall continue.
The Government of the Hong Kong Special Administrative Region shall safeguard the free flow of capital within, into and out of the Region.
|Article 5||The socialist system and policies shall not be practised in the Hong Kong Special Administrative Region, and the previous capitalist system and way of life shall remain unchanged for 50 years.|
See the Fees page.
Type of trusts offered
We do NOT offer land or real estate trusts. However the land can be held by a company whose shares will be held by the trust.
All of our trusts can be revocable or irrevocable.
Period of the trust: from 2 years minimum to perpetuity.
- Beneficiary trust
- Purpose trust, such as:
- The erection and maintenance of tombs and monuments
Type of investments covered
- Any major currencies (no cash)
- Irish bonds
- Gold (physical or not)
- Unit trusts/Mutual funds
- Shares of companies
Extra feature at no cost
We can create a trust funded by Paypal accounts without the Paypal transfer fees, but this is only available for US dollar denominated funding.
Contact us to discuss your trust requirements.
- Including Gibraltar, and all French Overseas possessions
- Including Overseas possessions: American Samoa, US Virgin Islands, Mariana Islands (Guam, Saipan)
- see Iceland, 2008