Case studies

Case Study 1 – Sanjeev wants to choose who to leave his wealth to

Sanjeev is concerned that the forced heirship rules will apply to his personal assets on his death. He is keen to leave some of his wealth to distant relatives, with whom he has a very close relationship. Sanjeev invests $1,500,000 into the Executive Investment Bond which is subject to a discretionary trust. His distant relatives are all included in the trust as beneficiaries. The policy and the trust are governed by Isle of Man law which recognises an individual’s right to create a trust, even though Sanjeev’s country of domicile may not. 

Sanjeev understands that the role of a trustee carries a significant responsibility and managing and administering the trust could be a challenge for him. Due to the complex nature of the law governing trusts, the duties of trustees and what is required for the trust to be run correctly, Sanjeev appoints the Old Mutual International Trust Company. This provides him with the comfort that the trust will be managed impartially. In addition, Old Mutual International Trust Company will keep up-to-date with any changes to the law governing trusts in the Isle of Man.

Case Study 2 – Fiona wants protection of her business finances in the future

Fiona owns an Old Mutual International Isle of Man Collective Investment Bond and would like to ensure that it is protected should something go wrong with her business finances in the future. Fiona considers assigning her policy into trust and appointing Old Mutual International Trust Company as the trustees because she has heard that if her assets were held within an Isle of Man trust structure, the legal ownership of those assets would be transferred from her ownership to that of the trustees. Therefore, the assets would no longer be considered Fiona’s personal assets. This would still be the case even if Fiona was a potential beneficiary under the trust. However, it is important to note that in any jurisdiction, it is unlikely that a trust would be valid if its sole purpose was to avoid payment to creditors for known debts.

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