Amstrow can establish, manage and provide professional Corporate Trustee Services to various types of trust structures which can be established under Irish Law. Amstrow is a truly independent corporate trust administrator with many years’ experience in helping clients understand the use of Trusts as extremely flexible instruments and valuable tools in several specific areas including off balance financing, asset protection and wealth transfer. In association with our affiliated company Amstrow Aviation Corporate Services we can also provide Aircraft Owner Trustee Services.
Amstrow can provide advice on all trusts and fiduciary matters with expertise in establishing private, commercial, charitable and non-charitable purpose trust structures. We can assist in setting up private trust companies, acting as the professional trustee, liaising with settlors, beneficiaries, protectors and other fiduciaries while managing the assets over their life. A trust unlike a company is not a legal entity but simply the confidence reposed in the Trustees to hold assets for the benefit of someone else (the“beneficiary”).
Amstrow as a corporate trustee can provide the necessary expertise to act as trustee and run the trust while also ensuring that the assets are held in a separate legal structure to safeguard against becoming commingled with other assets. Trusts fulfill a function in preventing or delaying both income and capital vesting to beneficiaries, while if structured carefully can provide complete flexibility as to when assets will vest to them. This is all documented in a Declaration of Trust deed which we can assist with.
Various Types of Trusts:
Charitable Trusts and Orphan Trust Structures
For many structured finance and capital markets transactions, such as securitisations/asset financing structures, the use of orphan trusts and Special Purpose Companies/Vehicles (“SPC’s”& “SPV’s”) are well-established structures throughout many jurisdictions including Ireland.
Amstrow can set up the Charitable Trust which is an irrevocable trust. The shares of the SPC/SPV are vested as the property of the Charitable Trust and while Amstrow will be recognised as the legal holder of the shares of the SPC/SPV the beneficial owner will be regarded as the charity as set out in the Charitable Trust Deed.
These types of structures are known as an “orphan company” whose shares are held on trust for either a charitable purpose or for a special purpose (i.e. for the benefit of the transaction).
Amstrow as trustees of the trust will ensure any funds remaining, after the transaction has run its course and has been liquidated, will go the Charitable Trust as beneficiary which in turn will get distributed to registered charities.
Aircraft Owner Trusts
Aircraft Owner Trusts are used in aviation transactions as an alternative to Aircraft Owning Entities (“AOE’s”). The Trust is established to hold the title of the of the aircraft and to act as the named lessor in the transaction. The beneficial owner will be the arranging lessor or owner who will manage the asset and the relationship with the Airline. Amstrow is authorised to act as the Trustee on these Aircraft Owner Trusts and to provide services throughout the lifecycle of the aircraft. If the aircraft is sold at a future date the Aircraft Owning Trust can be transferred to the new owner and there is less disruption or approvals saving time and costs.
Amstrow's team has many years’ experience working with lessors and lessees around the world while we are also very experienced in all matters of aviation law and registrations. We can provide all the necessary trust administration services to these structures and coordinate all matters as required with the relevant parties such as Legal advisors, Registries, Lenders and other Stakeholders.
Employee Share Ownership Trusts
Some share schemes such as, Employee Share Ownership Trusts (“ESOTS”), Approved Profit Sharing Schemes (“APSS”) and Employee Share Incentive Plans (“SIPS”), require a Trust to be established and independent Trustees to oversee the share plan and provide protection to the participants.
Amstrow's team has several years’ experience in acting as Trustee of these types of trusts which require certain functions to be carried out such as;
- acquire and hold the shares on behalf of the employees (who remain the beneficial owners of the shares). This allows them to exercise shareholder control and obtain the dividend stream.
- Ensure the Plan is administered correctly in accordance with the Trust Deed and domestic legislation.
- To represent the interests of participating employees.
- Carry out all revenue reporting requirements and ensure that the scheme meets the revenue tax legislative rules.
- Pay the Trust's expenses and act as the Trusts cash manager
The main instrument that governs the Trust and helps it to be established is through the Trust deed which will detail how the Trust should be governed, the rules and stipulations of the scheme and what assets it can hold along with what powers the Trustee may have while also ensuring the Trustees are Irish resident. Amstrow has an Irish resident Trustee Company that can assist with all your requirements.
Bare, fixed Trusts and life Interest Trusts
The most common structures used by non-corporate entities is a Bare Trust or Fixed Trust which allows control over when and how certain assets should be passed on to the beneficiaries of the Trust.
For a bare Trust the Trustees can hold the assets on trust for a person who is entitled to the assets and can request the property at any time. This is the most common type of Trust used where minor beneficiaries are entitled to the assets but do not have the legal capacity to deal with the assets. Once the beneficiary reaches a certain age the Trustees will not have any powers and must transfer the assets to the beneficiary which might not always be the right thing to.
To overcome the total transfer a fixed trust may be used which slightly differs to the bare trust in that the beneficiary has a fixed share of the Capital and income generated by the Trust and an entitlement to this when they reach a certain age. The difference is that they will not be absolutely entitled to the capital and income and the trustees are given power to appoint income and capital as they see fit until the beneficiary reaches a certain age.
Amstrow can assist with establishing these trusts and acting as Trustee over its life which provides many advantages in using a Corporate Trustee rather than an individual person or persons.
Discretionary Trusts are widely used in private wealth and estate planning structures especially when dealing with minors as an asset protection mechanism which allows for flexibility to provide for the changing circumstances of the Beneficiaries over the years.
Amstrow can act as the professional Trustee to these Discretionary Trust structures where the Trust property is transferred to the Trustees to hold and distribute the income and capital to the beneficiaries as set out in the Trust Deed. This is one of the reasons where a professional Trustee can assist and ensure that the Trust is managed in the best interest of the settlor's wishes as per their letter of wishes, which although is not a binding document allows their wishes of how the Trust should be managed be known.
These Trusts are commonly used by
- Parents with young children and significant assets
- Beneficiaries who have a disability or are unable to manage their affairs properly
- Parents of children in financial difficulties which may allow for generation skipping if appropriate
- Parents of children who may be having marital difficulties to protect their assets from being consumed into any legal or custody battles.
- Used as an asset protection mechanism against Creditors
Whatever your needs or wishes are Amstrow can assist.
Bond, Note and Security Trustee
Amstrow as a Corporate Trustee can provide the protective services required for a Bond and Note issuance programme and to act as Security Trustees for certain financial transactions. This ensures that if things go wrong within the deal then there is a mechanism designed to protect the rights of various financial investors involved.
By having an independent professional Trustee, who has a fiduciary power and responsibility,this ensures that all payment obligations and should it occur then to resolve and enforce any issue and rights on an event of default or bankruptcy scenario.
Amstrow's team has many years’ experience working with issuers, financiers and other stakeholders of note issuance structures to provide a complete and responsive solution.
- Provision of a Professional Corporate Trustee
- Holding of Trustee Meetings
- Minute keeping and board packs of Trustee Meetings
- Supervision of Trust assets and Investments
- Preparation of Trust accounts and audit packs
- Experienced professionals
- Trust Structuring
- Assist with Legal Trust deed review
- Tax planning
- Compliance and regulatory reporting
- Trust cash management
- Annual Tax reporting
- FACTA and CRS registration and reporting
- Specific Client portal for all trust legal documents and records
- Provision of a Note Trustee
- Acting as Bond Trustee
- Security Trustee Services
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