Rhiannon Williamson, from offshore investment firm Shelter Offshore, looks at how offshore trusts can reduce taxation down to as low as 1.6 per cent.

Did you know that the Rolling Stones successfully utilise the benefits of offshore trusts and other asset protection and tax planning techniques to mitigate their income taxation liabilities? Oh yes, so much so in fact that each member of the band has managed to legitimately avoid 98.4 per cent of their potential income tax liabilities in the last 20 years.

Not bad going and an excellent advertisement for the benefits of using an offshore trust structure I'm sure you'll agree! Well, in this article we'll show you how an offshore trust could save you time and tax as well, and why getting such a structure up and running and in place needn't be difficult, time consuming or expensive…

Just imagine if you could take your income tax liability down to just 1.6 per cent of all income earned! Well, according to documents published in Holland last year as part of the Rolling Stones’ most recent restructuring of assets and fortunes that is exactly what each member of the band has managed to do.

The documents prove that Jagger, Richards and Watts have effectively utilised structures such as trusts to offset their tax liability, to protect their assets during their lifetime and to protect their estates and the interests of their heirs upon death.

Now, while you may be unable to reduce your tax bill down as low as 1.6 per cent unless you want to become a tax exile from your home country, it is entirely possible for people like you and me to incorporate an offshore trust structure within a financial management strategy to a) reduce tax, b) protect assets and c) protect our estate and the interests of our heirs and beneficiaries.

Depending on your personal circumstances, a carefully planned offshore trust structure can be used for: -

1. The reduction of taxation during the lifetime of the settlor (the person who places their assets in a trust – i.e.., you).
2. The reduction of time, costs, stress and taxation associated with administering the estate of the settlor upon their death.
3. The protection of the settlor's assets against litigation or liability during their lifetime.
4. Protecting privacy and confidentiality of the settlor, their business and their beneficiaries.
5. Protecting against forced heirship.
6. Preservation of familial or business assets.

Expert advice needs to be sought before you begin the process of selecting a jurisdiction in which to set up your offshore trust, (by the way, only certain jurisdictions such as Gibraltar, the Isle of Man and Turks and Caicos fulfill all of the essential elements needed for a secure trust structure’s incorporation), and deciding which trustees are best for the management of your assets, your trust and the administration of benefits to your beneficiaries.

The article Could an offshore trust save you 98.4% tax? originally appeared on 999 Today