A Trust is a legally recognized relationship whereby one person or persons (the trustees) are appointed to hold, manage and safeguard the assets of a trust for the benefit of the beneficiaries. The assets of a trust can be in various forms, including shares, money, land or real estate.
Trusts can be very advantageously used in many cases. Some common applications are:
- For tax planning purposes
- For asset protection purposes for confidentiality
- For the protection of minors' rights
- For the protection from potential creditors
- For preserving the family fortune
- For protection from family members
The most widely known trust in Cyprus is the Cyprus International Trust (CIT), the basics characteristics is described below.
Why a Cyprus International Trust
The main legal framework governing trusts in Cyprus is a combination of English Law i.e. the Principles of Equity and Statute Law i.e. The Trustees Law of Cyprus (Cap 193), which, is modelled on the English Trustee Act of 1925 and the International Trusts Law of Cyprus (Law 69(I) of 1992 as amended by Law 20(I)/2012).
The International Trusts Law of Cyprus builds on the well-established English principles of equity and trusts and has created one of the most attractive trusts legal frameworks in the world. It is intended to offer to qualified persons, the opportunity to create a trust that will suit the most complex situations and demands and enjoy many advantages that cannot be found concentrated in other trusts jurisdictions. Such a trust is called a Cyprus International Trust (CIT).
How can we help
We advise clients about the creation of a Cyprus International Trust (CIT), including proposing structure ideas for creating, managing and dissolving a CIT and draft all required legal documents
- We support and assist clients in terms of logistics when setting up a CIT
- We set up private trustee companies (PTCs), corporate protectors, corporate enforcers (in Cyprus and in other jurisdictions)
- We advise clients and trustees about issues arising in relation to a CIT, trustee powers, beneficiary rights, interpretation of trust deeds and other trust related documentation
- We represent clients and trustees in court proceedings (contentious or not contentious)
- We advise clients on the potential weaknesses and deficiencies of existing trusts
- We provide trustee, administration, management and other related services