Types of Isle of Man Trusts

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What types of trusts can I establish on the IOM?

In the IOM you can establish the traditional kinds of family trusts that are also available in England. These include the following:

Discretionary Trust. This type of trust is used for distributing wealth to specified beneficiaries, such as children or grandchildren.

Life Interest Trust/Income in Possession. This is when trust income is automatically payable to a named party. There is less call for this type of trust due to changes in UK tax a couple of years ago.

Will Trust. A kind of family trust where beneficiaries have to reach a particular age to benefit.

Asset Protection Trust. Specifically set up to protect assets were the settlor threatened with litigation, now somewhat out of fashion and/or discouraged as they are increasingly targeted by courts.

Private Trust Company. More usually a trust for the very wealthy who have tens or hundreds of millions of assets. Often set up by large families to manage their entire wealth.

Corporate Entity (informally known as a Manx Foundation). A hybrid company limited by guarantee, but which also has a share capital.

Trust holding insurance bond. These are generally for smaller sums and for a specific tax purpose. These are not bespoke trusts and will be offered by many of the insurance companies when establishing, for example, an offshore bond.