Home2018-12-17T14:31:16+00:00

INTRODUCING

SWISS TRUST

The fully independent trust companies Swiss Trust Company, Nevada, USA and Swiss Trust AG, Zurich, Switzerland have been established with the aim of safeguarding clients’ privacy and minimizing tax risk.

Swiss Trust AG aims to guide high-net-worth individuals through the complex topographies of the Common Reporting Standard (CRS) in order to ensure their full tax compliance. The Nevada-licensed Swiss Trust Company, in turn, offers the tool to ensure an unparalleled level of privacy: a stand-alone Nevada trust.

“We believe the set-up that we have adapted to the new CRS landscape provides our clients with one of the highest levels of privacy and tax transparency available in the industry.”

 SAFELY MAPPING THE NEW TERRAIN OF TAX TRANSPARENCY

“We all know stark regulatory changes create moments of disorientation. And the new landscape shaped by the automatic exchange of information is noexception. Familiar paths may no longer appear trustworthy. It requires courage and determination to navigate unknown territory. 

Think of it as trying to reach a summit. In unfamiliar high-altitude terrain, you would certainly rely on a knowledgeable mountain guide who knows the area inside out to show you the way. And you would choose sturdy boots, adequate safety ropes, crampons – whatever equipment is needed to make your ascent safe.

We have worked with high-net-worth individuals in wealth management for many years and have supported their goals. For our clients, we have explored and mapped an ever-changing complex regulatory landscape. We have investigated all CRS requirements and their practical implementation and sought legal opinions.

We can safely say, we now know the new landscape of tax transparency inside out. And just like experienced mountain guides, we – as trustees – can now accompany our clients on the safest and most promising route along the mountain ridge towards the summit.

Our search for the best equipment to navigate this new terrain led us to Nevada. Aided by an estate planning attorney, we set up a stand-alone Nevada trust, a very flexible, sensible solution in the largest jurisdiction for wealth management worldwide. 

Over the years, we have learned to anticipate our clients’ demands and needs. In appreciation of their trust we constantly strive to be one step ahead, offering the best possible solutions. We believe the set-up that we have adapted to the new CRS landscape provides our clients with one of the highest levels of privacy and tax transparency available in the industry.”

Josef Meyer

Partner, Swiss Trust AG

AN EXPERIENCED GUIDE: SWISS TRUST AG

A RELIABLE INSTRUMENT: SWISS TRUST COMPANY

THE STAND-ALONE NEVADA TRUST

WHAT ARE THE ADVANTAGES?

PRIVACY AND TAX TRANSPARENCY– HOW DOES IT WORK?

In the new CRS environment, we consider the stand-alone trust proves to be a far more competitive instrument for holding private assets than any legal entities.

As a result of their place of effective management as well as the OECD’s Base Erosion and Profit Shifting (BEPS) initiative, legal entities are becoming more vulnerable in terms of tax compliance. A stand-alone Nevada trust mitigates these risks while at the same time minimizing taxes.

In order to offer this unique service to our clients, Swiss Trust AG and Swiss Trust Company serve as co-trustees.

The Swiss co-trustee deals with the CRS reporting, which offers an additional layer of comfort. In this set-up, only the total trust asset size and eventual beneficiary distributions have to be reported – as opposed to the detailed reporting requirements met by holdings conducted via banks.

Moreover, CRS reporting takes place only on the level of the grantor or beneficiaries and not on the level of the trust. For the client, this minimizes the flow of sensitive information.

OECD
Organization for Economic Co-operation and Development.

Nevada statutes govern the law of these trusts, allowing high flexibility and an unparalleled level of privacy.

The use of a Nevada Foreign Grantor Trust, which has been drafted by a qualified Nevada-licensed estate planning attorney, provides any foreign grantor with absolute decision-making capabilities regarding his/her assets.

It is treated in most jurisdictions, including the US, as a lookthrough and totally tax-transparent instrument. In the case that both the grantor and beneficiaries are non-US persons, there is also no US exposure for tax purposes.

Through the addition of the Swiss co-trustee, the Nevada trust is in effect a non-US person for US Securities and Exchange Commission (SEC) purposes.

Foreign Grantor Trust
A Foreign Grantor Trust is a US term designating a trust that satisfies a particular tax status under the US tax rules. “Foreign” (i.e., non-US) means that the trust is not considered a US domestic trust, so neither the trust nor its trustees are liable to US taxation. “Grantor” (the US term for “settlor”) refers to the non-US individual who funded the trust.