Trusts and corporate services

Providers of trust and corporate services (otherwise known as fiduciary services) manage assets effectively through tax-efficient schemes and structures on behalf of individual or corporate clients. These structures may be trusts, companies or other similar entities. What they have in common is a way of structuring assets to give the most benefit, for example by avoiding or deferring income tax or inheritance tax in other jurisdictions.

Corporate clients may want to set up structures to pay out employee benefits in a tax-efficient way, for example, while individual clients may want to plan their estate and manage their wealth. The Channel Islands are attractive offshore jurisdictions because they are politically stable, well-regulated and have modern innovative legislation that allows a wide variety of structures to be set up and administered there.

What are trusts?

The concept of trusts has been in existence for centuries. A trust is a legal entity transferring legal title to the trust’s assets from the settlor to the trustees, who must administer the trust for the benefit of third parties. The use of trusts has changed substantially, but traditionally they could be used where beneficiaries were not capable of managing their wealth themselves – or when noblemen had committed indiscretions and needed to provide for illegitimate offspring! These days, trusts are used primarily as wealth planning tools.

Business developments

The biggest developments in this area are caused by fiscal change – for example, decisions made by the UK chancellor can affect the amount or type of business from UK clients. Political changes can also affect the work of fiduciary services providers – the opinion of large countries does ultimately influence smaller jurisdictions. Recent changes to the tax system in the Channel Islands, for instance, have been brought about by external pressure, particularly from the EU.

The basis of fiduciary services is the same whether you’re working in Switzerland, Singapore or the Channel Islands. While actual company laws may differ between countries, the basic fundamentals remain and there are many similarities. The skills and knowledge you will gain are highly transferable.

The opportunities

After learning the basics about establishing trusts and incorporating companies, you could expect to start dealing with clients and advisors. In many roles, you will be encouraged to work towards a professional qualification.

The work can involve anything from setting up trusts to actually running the entities. The structures may, among other things, own and manage super yachts or develop properties – so the work can be varied. Trusts can be complex and so it’s important to be able to communicate clearly with clients to explain what is happening and why.

There are also roles in accounting and tax. Each area requires different skills sets but in general there is a lot of contact with other areas of the business and with clients, so long-term relationships are important and you will need good communication and interpersonal skills.