Isle of Man Trusts
Trusts are formed where an individual (the settlor) transfers assets to a trustee and creates a legal
arrangement known as a trust. A trust deed which is drawn up sets out the conditions under which the
trustee should operate and the beneficiaries who are nominated to receive capital or income benefits from
the trust’s assets.
Advantages
The advantages to an Isle of Man trust are numerous and include asset protection; tax planning
opportunities; estate planning; confidentiality and in some cases avoiding forced heirship rules.
The more popular types of trust that exist are:
Discretionary
Trustees of a discretionary trust have full discretion over the appointment of income and capital for
the benefit of the beneficiaries and the trustee must consider the provisions of the trust deed when
decisions are made.
Interest in Possession Trust
This is a trust where a beneficiary has an absolute current right to the income from the trust and its
net income must be distributed to the beneficiary.
Accumulation and Maintenance Trust
These permit the trustees to appoint the capital and income of a trust for the maintenance of a
beneficiary (usually for educational purposes), before the date on which the beneficiary becomes entitled
to the trust assets.
Will Trusts
This type of trust is automatically created on the passing away of an individual who decrees that a
Will Trust be formed on his passing away. The management and assets of the individual are determined by
the will of the deceased, as are the beneficiaries of the Will Trust.
Purpose Trusts
Purpose Trusts are formed for a particular purpose rather than incur benefits to an individual.
Grant Thornton (Isle of Man) Services Limited
Grant Thornton (Isle of Man) Services Limited is an in-house trustee that provides trustee services
which includes the establishment and administration of Isle of Man trusts.
Our trustee is able to set up and administer a trust and deal with the settlor, beneficiaries and
intermediaries where necessary, employing the due care and skill required of a trustee and taking care to
manage the trust in the most tax efficient manner.
Please view the Trust Questionnaire section
for information required before a trust can be formed.
If you require further information please contact:
Dennis McGurgan
E: dennismcgurgan@grantthornton.co.im
T: +44 (0)1624 639494
F: +44 (0)1624 662249