Asset Ownership Scheme
Assets are the property of the enterprise. It consists of tangible, financial and intangible assets.
Tangible and intangible assets
Tangible assets are: land or the right to use it; buildings and structures on the balance sheet of the enterprise; installed and uninstalled production equipment; movable property for non-production purposes; stocks of raw materials, finished products; property, fixed assets, buildings or structures, leased land plots; affiliates belonging to the enterprise, subsidiaries, if they do not have the status of a legal entity, and their balance sheets are not separated from the balance sheet of this enterprise.
Financial assets include cash on hand; bank deposits; deposits; checks; insurance policies; investments in securities; obligations of other enterprises and organizations to pay funds for delivered products (commercial credit); portfolio investments in shares of other enterprises; blocks of shares in other enterprises, giving the right to control; shares or shares in other enterprises.
Intangible assets are trademarks, trademarks, patents, know-how, other types of intellectual property; right to use. As we can see, assets are the main component of a business that needs to be effectively protected.
Trust Asset Ownership Schemes
So you need to build a scheme that would provide the following tasks:
- Optimal taxation of profits received from asset ownership.
In this regard, asset protection should be understood as follows:
- Ownership Privacy
- Ability to manage assets
- Possibility to confirm your rights to assets
- Inability to transfer assets without the permission of the owner
All these requirements can be met by transferring the assets of the company to the trust. Direct transfer of assets to a trust is not consistent with Ukrainian law. That is why the assets are acquired by an onshore company (it must be located in the country with which an agreement has been signed on avoiding double taxation). The shares of this company belong to the trust, the beneficiary of the trust can be a resident of Ukraine. But it is better to register an offshore company as a beneficiary. The beneficiary can act as the founder of the trust, but we recommend using an offshore company. In addition, for a trust to not be considered fictitious, it must be discretionary. In addition, in order to neutralize the irrevocable nature of the trust, an option contract can be entered into to buy all assets for a low cost (for example, $ 100).
Thus, a trust in an asset ownership scheme allows you to separate assets into a separate structure, safe from creditors. The trust provides confidentiality of ownership at optimal taxes. In this case, the trust can perform the functions of a will.