An introduction to Trust
In common law legal systems, a trust is an arrangement whereby property (including real, tangible and intangible) is managed by one person (or persons, or organizations) for the benefit of another. A trust is created by a Settlor, who entrusts some or all of his or her property to people of his choice (the trustees). The trustees hold legal title to the trust property (or trust corpus), but they are obliged to hold the property for the benefit of one or more individuals or organizations (the beneficiary, a.k.a. cestui que use or cestui que trust), usually specified by the Settlor, who hold equitable title. The trustees owe a fiduciary duty to the beneficiaries, who are the "beneficial" owners of the trust property. The trust is governed by the terms of the trust document, which is usually written and in deed form. It is also governed by local law. The trust law developed in England at the time of the Crusades, during the 12th and 13th centuries. The crusading nobleman trusted one of his friends to manage his estates for the benefit of the crusader?s family. Thus the crusader was the first trust settler, his friend was the first trustee and the family were the first beneficiaries. Though it has many variations of form and exists in many jurisdictions, trust law is universally considered to be well-settled?stable and predictable. Were this the only consideration, an offshore trust could be created in any one of dozens of offshore jurisdictions..

Purpose and creation of Trust
In forming the trust the main parties involved are:
Settlor
In law a Settlor is a person who settles properties or assets on express trust for the benefit of beneficiaries. The property or assets can be in form of funds, shares, cars, boats, real estate, (movable or immovable property) and even non entities such as patents or rights.
Trustee
Trustee is a legal term that refers to a holder of property on behalf of a beneficiary. In all cases, the trustee may be a person or company, whether or not they are a prospective beneficiary. The trustee must be independent from the Settlor and has all rights and full control over the actual running of the trust. The trustees administer all of the affairs attendant to the trust. This includes investing the assets of the trust, insuring trust property is preserved and productive for the beneficiaries, accounting for and reporting periodically to the beneficiaries concerning all transactions associated with trust property, filing any required tax returns on behalf of the trust, and many other administrative duties. However it is possible to draft a separate agreement between the Settlor and Trustee ensuring the Settlor retains full control and can benefit from the Trust itself.
Beneficiary
The beneficiaries are beneficial (or equitable) owners of the trust property. A beneficiary will normally be a natural person, but it is possible to have a company as the beneficiary of a trust, and this often happens in commercial structures, generally speaking, there are no strictures as to who may be a beneficiary of a trust.

The main purpose creating a Trust are:
Asset Protection
From an asset protection standpoint, it is always sound financial planning to separate oneself from ones assets. Trusts have been used for years to protect one's assets from future and potential future claims on ones assets. One common trust structure used for asset protection is the discretionary trust. The creation of a discretionary trust, of which the Settlor may be the protector and a beneficiary of the trust, but not the trustee and not the sole beneficiary. In such an arrangement the Settlor may be in a position to benefit from the trust assets, without owning them, and therefore without them being available to his creditors. Such a trust will usually preserve anonymity with a completely unconnected name (e.g. "Cow Trust"). The above is a considerable simplification of the scope of asset protection.
Privacy
Trusts may be created purely for privacy. The terms of a will are public and the terms of a trust are not. In some families this alone makes use of trusts ideal.
Estate Planning
Trusts are frequently used for estate planning and often appear in wills. One particular way that trusts are used for estate planning is in the case of forced heirship, which is when the law of the country dictates who gets what, regardless of the wishes of the deceased. While there are a number of solutions to this problem, one of the most popular, and the one that is the use of a foreign trust structure in jurisdiction to hold the assets indefinitely without ever triggering heirship rules since elements within a trust structure can be created so that they never die.
Unit Trusts
The trust has proved to be such a flexible concept that it has proved capable of working as an investment vehicle: the unit trust. A unit trust is a form of collective investment constituted under a trust deed. Unit trusts are open-ended investments; therefore the underlying value of the assets is always directly represented by the total number of units issued multiplied by the unit price less the transaction or management fee charged and any other associated costs.
Tax Planning and Avoidance
The tax consequences of doing anything using a trust are usually different from the tax consequences of achieving the same effect by another route (if, indeed, it would be possible to do so). In many cases, except for US persons, the tax consequences of using the trust are better than the alternative, and trusts are therefore frequently used for legal tax avoidance.
Charities
In some common law jurisdictions all charities must take the form of trusts. In most jurisdictions, charities are highly regulated. Some people are lured into creating charitable trusts that will not and substantially engage in charitable work built for the purpose of asset protection or tax avoidance. This will not work and should be avoided. However, legitimate charitable trusts and charitable remainder trusts can be a key element in successful tax reduction structures.

Offshore Trust
Strictly speaking, an offshore trust is a trust which is resident in any jurisdiction other than that in which the Settlor is resident. However, the term is more commonly used to describe a trust in one of the jurisdictions known as offshore financial centers or, colloquially, as tax havens. Offshore trusts are usually conceptually similar to onshore trusts in common law countries, but usually with legislative modifications to make the more commercially attractive by abolishing or modifying certain common law restrictions. By extension, "onshore trust" has come to mean any trust resident in a high-tax jurisdiction. Like a traditional trust in that it comprises a relationship or arrangement entered into by a person or group designated to be the ?Trustee,? and a distinct person or group of people designated the ?Settlor,? by which provisions are made in a binding, written legal form known as the ?Trust Deed,? in order to hold title to assets and property, to manage said assets in accordance with the trust deed, in order to provide a series of benefits and distributions to a person or group of persons designated as the ?Beneficiaries?. The trustee and/or the trust company charged with the management of the trust are bound by a fiduciary duty o uphold the agreement, and they agree to the rules and requirements set out by the trust deed.
The primary benefit of a trust is the protection it offers. Assets are kept out of reach of creditors and judgments. The other benefit of creating offshore trust is The Settlor can transfer any assets he own and legally declare he does not own them, assets that belong to the trust cannot be seized, Settlor secrecy and confidentiality guarantee and most important trusts are free from taxation.
In creating an offshore trust it is critical to critical that your offshore trust be located in a jurisdiction that favors foreign beneficiaries and in a country that is strong politically. Setting up your offshore trust must be carefully performed and engagement should only be conducted with a qualified service provider. There are many provisions that need to be included in the trust in order for the asset protection provisions to stand strong under legal scrutiny. Selecting the proper jurisdiction is critical because not all jurisdictions offer strong asset protection benefits. Offshore Labuan can assist with your offshore trust establishment and aid in your asset protection, we establish trusts, bank accounts and companies for a worldwide audience.

Recommended Offshore Trust Jurisdiction
As mentioned above selecting the proper jurisdiction are critical in forming an offshore trust therefore we recommended Labuan as one of that jurisdiction, not only its provide strong asset protection benefits but its also backed up by strong government policy and well qualified trust service provider.
Nevertheless we also can assist you establishing an offshore trust upon your request and your selected offshore jurisdiction.