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The Cyprus Trust Law One Year On

The Cyprus Trust Law One Year On. Maria Kyriacou Andreas Neocleous & Co LLC. The Law of Trusts in Antiquity. The Greeks (Demosthenis case 365 BC) The Romans (fideicommissum 200 BC) The Crusaders (12 th century) The Anglo-Saxon legal system. The Law on Trusts Today.

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The Cyprus Trust Law One Year On

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  1. The Cyprus Trust Law One Year On Maria Kyriacou Andreas Neocleous & Co LLC

  2. The Law of Trusts in Antiquity • The Greeks (Demosthenis case 365 BC) • The Romans (fideicommissum 200 BC) • The Crusaders (12th century) • The Anglo-Saxon legal system

  3. The Law on Trusts Today • The Trustee Law Cap 193 of 1955 • The International Trusts Law No. 69(I) of 1992 to 2012

  4. STEP The law aims at further enhancing Cyprus’s footprint as a leading trust jurisdiction since in contrary to most jurisdictions transparency and authority will be granted from the law creating the Trust. Total Serve - Cyprus Amends International Trusts Law The Cyprus House of Representatives passed late last week the eagerly-awaited amendment International welcome of the new Law PWC - Amendment of the Cyprus International Trusts Law The new Law builds on the existing very attractive Cyprus International Trusts Law and has introduced many new features. Andreas Neocleous & CO LLC - Reform of the Cyprus International Trusts Law of 1992 The long-awaited reform of the Cyprus International Trusts Law, a much needed initiative, has finally become reality Deloitte Reform of the Cyprus International Trusts. The most modern and favourable trust regime in Europe

  5. The effects of the new Law • New Trust Companies Registered • Increase in EU Family Trusts choosing the Cyprus Law

  6. Cyprus International Trusts Cases & UK Case Law

  7. Key features of the new Trust Law (1) Removes any prohibition on settlors relocating to Cyprus after establishing a Cyprus International Trust; Makes clear that all questions relating to Cyprus International Trusts are to be determined in accordance with the laws of Cyprus; Protects against the application of foreign laws, such as forced heirship laws, as a matter of public policy; Allows the settlor to reserve powers to himself, to retain a beneficial interest in trust property, or to act as the protector or enforcer of the trust Removes any limit on the duration of a trust; Widens trustees' investment powers and, in particular, abolishes the prohibition on investment in immovable property in Cyprus

  8. Key features of the new Trust Law (2) Powerful asset protection features 2 year “hardening period” Valid transfers unless intention to defraud is proved Claimant must show that he or she was a creditor at the time of transfer Unaffected by matrimonial property or succession laws

  9. Uses of Cyprus international trusts Individuals Preservation of wealth Managing family wealth Pre-immigration planning High-risk professions Pre- or post- nuptial arrangements Testamentary freedom Philanthropy

  10. Managing family wealth A Cyprus international trust provides an effective structure for managing family wealth with the following benefits: Flexibility - reserved powers, choice of law Protection Unlimited investment powers Tax neutrality Perpetual existence Inheritance tax avoidance

  11. High-risk professions Claims may emerge many years after the event and be disastrous in scale From doctors to accountants From architects to businessmen But also prudent for all It is not intended to offer a loophole to every settlor who wishes to avoid his existing creditors. Instead, it is intended to offer a legitimate protection to persons who may be engaged in high risk professional activities.

  12. The reform of the International TrustsLaw gives Cyprus the most modern and favourable trust regime inEurope, and restores it to the"premierleague" of trust jurisdictions.

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