Trusts and foundations

Flexible trust solutions tailored to your needs

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The future belongs to those who plan for it. When planning to pass on your wealth or protect your assets, it's never too early to consider a trust or charitable foundation. Want to set up a family trust to protect your loved ones, create a profit-sharing scheme for employees or build a foundation for charitable purposes? We have the knowledge and experience to act as your trustee.

Learn more about trusts

What is the definition of a trust?

A trust is a fiduciary arrangement where an appointed trustee holds property or assets for the benefit of others. They are widely used for holding significant sums of money for private estates and their families. Many pension funds, mutual funds and  charities are also structured in a trust-like manner. The primary purpose of a trust is to 'ring fence' assets to protect and manage them for the benefit of the beneficiaries, even in situations like bankruptcy or insolvency.

What is a fiduciary?

A fiduciary is an individual or entity who has the legal responsibility to act in the best interests of another party. Trustees are fiduciaries who manage and make decisions about the trust's assets on behalf of the beneficiaries. Other examples of fiduciary relationships include lawyers/clients, doctors/patients, and parents/young children. Fiduciaries cannot act for personal gain, and require fully informed consent of the beneficiaries, or act with express permission of the trust instrument or agreement.

What is wealth succession planning?

Wealth succession planning governs the transfer of assets upon an individual's death. In the context of trusts, this can affect how and when beneficiaries receive their inheritance. Trusts can be established to provide a smooth transition of assets, avoiding the complexities, expenses, and public nature of probate. Trusts can be set up during the settlor’s lifetime  or through a will.

What are the four major types of trusts?

There are four major types of trusts:

  1. Fixed Trusts: Beneficiaries receive fixed shares of the trust assets.
  2. Discretionary Trusts: Trustees have the power to decide how and when to distribute the trust assets among the beneficiaries, guided by the settlor's wishes.
  3. Revocable Trusts: The settlor retains the ability to alter or revoke the trust.
  4. Irrevocable Trusts: Once established, the settlor cannot change or dissolve the trust.

What duties do trustees have when investing in funds?

Trustees have a duty to invest unless this is specifically removed by the terms of the trust, aiming for income yield or capital appreciation. They must avoid speculative investments and maintain a balanced and diversified portfolio. If the settlor wishes to engage in more speculative investments, they can strip investment powers from the trustees, appointing others to manage the investments.

What are the trustee's obligations regarding disclosure?

It’s now the norm for trustees to disclose information about trusts to tax authorities. They disclose the fact of the trust, the settlor and the distributions to beneficiaries. Nowadays this is done under the rules developed by the OECD

What are the tax implications of a trust?

Anyone intending to establish a trust should obtain and understand independent legal and tax advice on the tax implications for the settlor, the beneficiaries and the trustee, and also the reporting consequences.

Learn more about trusts – our video

Discover the potential of trust services and how they can enhance your wealth management strategy.

Why choose UBS as your trustee

As a global wealth manager since 1862, UBS truly understands the holistic aspects of wealth management for our clients worldwide. Beyond simply growing and preserving wealth, we appreciate the significance of building a lasting legacy for your children and future generations.

As your trustee, we consistently demonstrate our trustworthiness and expertise. From estate planning and tax optimization to establishing charitable foundations, managing trust administration, and protecting family wealth, we provide comprehensive solutions tailored to your circumstances. Let us guide you in supporting your wealth management needs and secure the future that you envision.

How our trust companies work

We operate fully licensed trust companies in Jersey (Channel Islands), the Bahamas, Cayman Islands, and Singapore. All are 100% subsidiaries of UBS AG, complete with experienced trustees based in various locations.

Our trustees are capable of managing various asset classes, including cash, securities, structured products, and other bankable assets. We can also handle your trust needs seamlessly, even when your assets are spread across multiple banking relationships, including third-party banks. In some circumstances, our trust companies can also hold non-bankable assets such as real estate and more.

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Your benefits of setting up a trust with UBS

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Customised trust solutions

We'll create a tailored trust that aligns with your priorities and concerns, working closely with your legal and tax advisors to ensure everything remains smooth and up-to-date.

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Legacy that lasts

Your family trust can also serve as a lasting vehicle to preserve your family’s wealth for the benefit of your children and future generations. Beyond wealth preservation, it can also be a powerful tool for making a positive impact—many charitable foundations are established as trusts. These trusts are often designed to support charities or undertake meaningful philanthropic initiatives.

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Your assets protected

A family trust offers a secure framework to safeguard your wealth from uncontrollable events, such as political instability. It also enables structured income distribution to beneficiaries, making it particularly valuable for young children who are not yet financially independent. Additionally, it provides peace of mind for parents seeking to protect assets in scenarios like potential future divorces.

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Tax efficient

Your tax advisor in the relevant jurisdiction can help ensure that your trust is tax-efficient under specific circumstances.

How trust flexibility supports evolving needs

Your beneficiaries’ needs are likely to change over time, and the person who set up the trust (the settlor) can discuss these needs periodically with the trustee.

Trust law in certain jurisdictions allows the settlor to retain some control, such as appointing and removing trustees and managing the trust's assets. Depending on your goals in settling the trust, it may not be appropriate for you to retain certain powers. However, the fact that it's possible to do so means we can make your trusts flexible enough to meet your changing wealth protection or estate planning needs.

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The price and value of investments and income derived from them can go down as well as up. You may not get back the amount originally invested.

UBS does not provide tax or legal advice. You should consult your independent tax/legal advisor for specific advice before entering into or refraining from entering into any services or investments.

 

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Together, we can help you establish a trust that best align with your needs.

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