Create a Trust

Motivation

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%
2008

Argentina

Financial (pensions)

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
USA5

US$250,000

No
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
Japan

JPY 10,000,000

No
Thailand

THB 1,000,000

No
Malaysia

MYR 250,000

Yes
Taiwan

TWD$3,000,000

Yes
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…

Which jurisdiction?

In our view, only Hong Kong gives a legal guarantee against capital controls, through its Basic Law (mini-constitution) valid until 2047.

Article 112

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.

Our fees

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:
    • Charitable
    • Political
    • 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.

Next step

Contact us to discuss your trust requirements.

Notes

  1. https://blogs.wsj.com/emergingeurope/2010/11/24/hungary-forces-private-pension-fund-members-back-to-state-scheme/
  2. Including Gibraltar, and all French Overseas possessions
  3. https://www.iomfsa.im/consumer-material/isle-of-man-depositors-compensation-scheme-dcs/
  4. https://www.gov.je/Industry/Finance/DepositProtection/Pages/Overview.aspx
  5. Including Overseas possessions: American Samoa, US Virgin Islands, Mariana Islands (Guam, Saipan)
  6. see Iceland, 2008
Sidebar