Gibraltar
Trust Management
Trust
management has been a significant activity for
Gibraltar for more than fifty years. Originally
most trust business emanated from rich UK individuals
and was tax-related, but asset protection trusts
have become important in recent years, with
a much more diverse clientele.
Gibraltar
trust legislation is reasonably up-to-date,
and although purpose trusts have not yet been
implemented, the issue is on the government's
radar, with a consultation on proposals put
forward by the Society of Trust and Estate Practitioners
(STEP) for the introduction of such legislation
published in May 2006. Many Gibraltar legal
firms and banks have trust management departments.
Gibraltar's
asset protection trust legislation is unique,
as it falls within the provisions of the bankruptcy
laws, rather than falling within the ambit of
fraudulent conveyancing laws. In order for a
creditor to commence an action in Gibraltar,
where the asset protection trust legislation
is part of the bankruptcy law, the only direct
action which can be commenced is a bankruptcy
proceeding; the standard of intent to defraud
that must be met is much narrower and generally
more difficult for the creditor to satisfy.
Accounting
and legal professionals are able to offer trust
management without separate registration, but
other persons or firms must obtain licenses
for trust management from the Financial Services
Commission.
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