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The Children's Incentive Trust

   

This trust is designed to provide protection and incentives your children at an early age. It will demonstrate your love for them without spoiling them.

Main Features

This is an asset protection trust combined with the features of an accumulation and maintenance trust. This means that the assets transferred in this settlement will be for the benefit of the settlor’s children and remoter issue, and will be protected from creditors’ claims, judgments and divorce settlements. The assets which will be transferred into this trust can be anything, ranging from homes for the benefit of the heirs to life insurance policy on the life of the parent. The income arising from the trust assets can be accumulated and used for the maintenance of the beneficiaries.

The trust can be tailored to provide that the beneficiaries receive incentives upon achieving certain targets. For instance, the settlor may wish to provide that each child will receive a lump sum upon completing their tertiary education.

The income from the trust can be accumulated and the distribution of capital can be linked to the beneficiary attaining a certain target. Otherwise, the trust can be terminated upon the death of the settlor and divided into a similar sub-CIT for each beneficiary’s issue. The use of sub-trusts can allow the flexibility of wealth planning over several generations.

Who is it for?

  • Parents who wish to provide for the maintenance and education of their children
  • Parents who wish to plan the future of their children should the worse happen and provide an incentive to achieve certain targets

Benefits

  • Protects assets against creditor and divorce claims
  • Can help reduce the taxable estate of the settlor
  • Provides funds for educational opportunities
  • Provides funds for emergencies and opportunities, including first-home purchases and business start-ups
  • Incentive provisions, such as bonuses for excellence in academics and career, can be included
  • Permits wealth management over several generations

Proposed Vehicle

  • Seychelles International Trust

Taxation

  • Only in resident state of beneficiaries

How to Proceed

If you would like to discuss your requirements with one of our consultants,
please contact us.

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