RIGHTS OF INHERITANCE OF HEIRS OF BENEFICIARIES OF OFFSHORE COMPANIES AND TRUSTS
Authors:
Type:
Article
Pages:
from 85
to 91
Status:
Published
Received:
15.09.2017
Accepted:
06.10.2017
Published:
06.10.2017
Subject area:
UDK 34 Право. Юридические науки
BBK 67 Право. Юридические науки
BBK 67 Право. Юридические науки
Language:
Russian, English
Keywords:
trust, discretionary trust, testamentary trust, settlor, beneficiary, trustee, bare trustee, trust deed, trust contract, equity, offshore jurisdictions, offshore company, nominee services, nominee shareholder, nominee director, inheritance rights, compulsory portion, testator, heirs, will, applicable law, mandatory rules, default provisions, legal title holder, beneficiary owner’s rights, controlled foreign companies.
Abstract (English):
The author researches the issues of rights of inheritance of heirs of beneficiaries of offshore companies and trusts in respect of property (assets) of the latter. These issues are of current interest in the light of using the services of nominee’s shareholders and directors of offshore companies which is widespread among Russian businessmen. Particular attention is paid to recognition of legal consequences of offshore testamentary trusts in civil law countries. These issues are also actual ones in the light of Russian laws on foreign controlled companies (CFC), which do not qualify irrevocable and discretionary trusts as CFC, and consequently such trusts are quite popular in Russia. One of the disadvantages of using the services of nominal shareholders by the beneficiary of offshore company is the unresolved rights of inheritance’s issues in case of beneficiary’s death. Consequently the Russian individuals who use the services of nominee shareholders in the offshore companies should protect their inheritance rights in case of unforeseen circumstances (e.g. death). Similarly in case of death of the trust beneficiary the fate of property transferred to the trust depends on the content of trust agreement, as well as of the trustee’s authorities. Therefore the fate of a trust and its assets in the event of beneficiary’s death should be determined in a trust agreement. The potential beneficiaries (in particular, the desirable heirs) should be familiar with the relevant trust documents. The author illustrates his reasoning by reference to legislation and case law of Russia and foreign countries. The author inter alia analyzes the issues of recognition of trusts created abroad, including under the Hague Convention on the Law Applicable to Trusts and on their Recognition of 1985.
The author researches the issues of rights of inheritance of heirs of beneficiaries of offshore companies and trusts in respect of property (assets) of the latter. These issues are of current interest in the light of using the services of nominee’s shareholders and directors of offshore companies which is widespread among Russian businessmen. Particular attention is paid to recognition of legal consequences of offshore testamentary trusts in civil law countries. These issues are also actual ones in the light of Russian laws on foreign controlled companies (CFC), which do not qualify irrevocable and discretionary trusts as CFC, and consequently such trusts are quite popular in Russia. One of the disadvantages of using the services of nominal shareholders by the beneficiary of offshore company is the unresolved rights of inheritance’s issues in case of beneficiary’s death. Consequently the Russian individuals who use the services of nominee shareholders in the offshore companies should protect their inheritance rights in case of unforeseen circumstances (e.g. death). Similarly in case of death of the trust beneficiary the fate of property transferred to the trust depends on the content of trust agreement, as well as of the trustee’s authorities. Therefore the fate of a trust and its assets in the event of beneficiary’s death should be determined in a trust agreement. The potential beneficiaries (in particular, the desirable heirs) should be familiar with the relevant trust documents. The author illustrates his reasoning by reference to legislation and case law of Russia and foreign countries. The author inter alia analyzes the issues of recognition of trusts created abroad, including under the Hague Convention on the Law Applicable to Trusts and on their Recognition of 1985.
Keywords:
trust, discretionary trust, testamentary trust, settlor, beneficiary, trustee, bare trustee, trust deed, trust contract, equity, offshore jurisdictions, offshore company, nominee services, nominee shareholder, nominee director, inheritance rights, compulsory portion, testator, heirs, will, applicable law, mandatory rules, default provisions, legal title holder, beneficiary owner’s rights, controlled foreign companies.
trust, discretionary trust, testamentary trust, settlor, beneficiary, trustee, bare trustee, trust deed, trust contract, equity, offshore jurisdictions, offshore company, nominee services, nominee shareholder, nominee director, inheritance rights, compulsory portion, testator, heirs, will, applicable law, mandatory rules, default provisions, legal title holder, beneficiary owner’s rights, controlled foreign companies.
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