Offshore Trust Derivatives and Affiliates
The trust, as explained previously, originated under Common Law with the three components of settlor, trustee and beneﬁ ciary. The absence of a beneﬁ ciary would therefore cause the trust to fail; and, in a similar vein, a trust created for a purpose rather than for a beneﬁ ciary was not valid unless the purpose was charitable. The trend developed where businesses began to use charities as the ultimate but inconsequential beneﬁ ciaries in their ﬁ nancial planning by way of trust structures. The offshore ﬁ nancial centres have taken the concept to its logical and expected extension by authorising a trust for non charitable purposes.