chapter  15
10 Pages

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.