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Trade and trust

16 October 2012
Issue: 4375 / Categories: Forum & Feedback
All the shares of a new client company are owned by an Isle of Man trust, although there appear to be minimal records and no trust bank account

We act for a client whose affairs we took over only recently. We now find that his trading company – the one through which his business is conducted – has all the shares held by an Isle of Man trust.

It is a discretionary trust but there are very wide powers.

He and his siblings are the class of beneficiaries and he is the settlor. The original deed refers simply to the initial £100 put into the trust but we can’t find a bank account.

Neither he nor we know why matters were arranged in this way. We think that it might have been instigated by our client’s late father.

Oddly until we came on the scene it doesn’t seem to have been an issue.

Our client takes a modest salary and the question of dividends doesn’t seem to have arisen.

From what little we know...

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