UK Ltd Co: Moving shares for asset protection

by **dave888** on Fri Jun 04, 2010 11:18 pm

I have a one quarter shareholding in UK Ltd Co which is becoming highly profitable.

I would like to be able to move the shares from my own name to that of a Trust - not to avoid tax, but rather to ensure that the shares are fully protected in case my own financial affairs should ever change, especially as I am considering other legal ventures.

I want to be able to setup a trust which clearly identifies me as the settlor, beneficiary and protector, so that I am in complete control - in addition to the fact that my accountant wants a full copy of the trust deed - and to ensure that I pay the relevant taxation and not fall foul of any accidental wrongdoing.

As I understand UK trustees have to be licensed (SP?), would an offshore trust be a good vehicle to achieve this?

Many thanks

by **dave888** on Sat Jun 05, 2010 8:31 pm

Really hoping that some kind soul can help!

Many thanks

by **Lee Young** on Sat Jun 05, 2010 9:32 pm

Presumably you still want to be able to benefit from the capital and income and retain all voting and control rights?

by **dave888** on Sat Jun 05, 2010 9:57 pm

Lee Young wrote:Presumably you still want to be able to benefit from the capital and income and retain all voting and control rights?

Yes, that is correct.

This is not for tax avoidance, but more for asset protection, my logic being if the shares are in a trust name and something bad should happen to me fincially (ie someone tries to legally sieze my assets), the shares are safe, as they will have been transferred to the trust way before any action (godforbid) took place.

by **Lee Young** on Sat Jun 05, 2010 10:35 pm

If you can receive all the benenfit and control the shares how are they beyond your control and therefore protected? They are not - a genuine trust might work, subject to Insolvency Act rules.

by **dave888** on Sat Jun 05, 2010 10:59 pm

Lee Young wrote:If you can receive all the benenfit and control the shares how are they beyond your control and therefore protected? They are not - a genuine trust might work, subject to Insolvency Act rules.

My wording was bad.

I setup a trust, move the shares in the name of the trust, then the trustees pay me out as a beneficiary.

I am thinking of Cook Islands or Nevis.