FORM-A-CO (GIBRALTAR) LIMITED, via its association with Moore Stephens Gibraltar, is pleased to announce that it is able to make available a special form of Trust to accommodate specific circumstances.

A Short Form Trust ("SFT") is a streamlined version of a full blown Discretionary Trust designed to reduce costs to the client while allowing him the option of a continued discretionary control over the Trust's assets. The SFT achieves this by focusing its holding on a SINGLE asset for and on behalf of the client. Examples of such assets may be:

  • a. Shares in private limited liability companies.
  • b. Immovable property.
  • c. Quoted securities listed on an official Stock Exchange.
  • d. Cash deposits held in a bank account.
By only accommodating a single asset in its name, the SFT is suitable for limited forms of estate planning. Clients are therefore advised to at all times seek appropriate tax and legal advice in their countries of domicile and residence, before committing themselves to such a structure.

FORM-A-CO (GIBRALTAR) LIMITED can make available two distinct types of SFT to cover discretionary or life interest.

DISCRETIONARY SFT
The Trustee holds the asset and any income arising from the benefit of all or any one or more of the beneficiaries named in the Trust Deed, or subsequently appointed or excluded by the Trustee, as the Trustee in its discretion thinks fit. Income can be paid, applied or appointed to the beneficiaries, or accumulated and added to any capital arising. The beneficiaries retain the right to direct the Trustee in the handling of the affairs of the Trust via the issuing of Letters of Wishes.

LIFE INTEREST SFT
Any income arising out of the asset is paid to the Settlor during his/her lifetime and thereafter to the person specified in the Trust Deed. Capital may be paid to the Settlor during his lifetime at the discretion of the Trustees. In the event of the death of both the Settlor and the specified person, income and capital will be held in Trust for the issure of the Settlor in equal shares "per stirpes" absolutely.

Costs for the provision of an SFT
*N.B. All costs are in Pounds Sterling 

Establishment of an SFT                                 GBP £500
Annual Trustee Services (payable annually in advance)   GBP £350
to cover the following:
  • The maintenance of the Trust records, including accounting records.
  • Maintenance of a Bank Account.
  • Distribution of income once a year.
  • The preparation of annual accounts consisting of balance sheets and income accounts.
All costs appearing above are subject to review on a periodic basis and FORM-A-CO (GIBRALTAR) LIMITED reserves the right to amend fees or services without prior notice.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.