In order to gain the full benefits of tax planning, asset protection and estate planning, a properly executed trust deed, hybrid company or Panamanian foundation is required. An international company (IBC) alone does not provide these benefits to residents of most jurisdictions.

A company connected to a trust is required to carry on the business of the trust - operate brokerage and bank accounts, execute contracts or agreements, operate credit cards, etc.

The other alternatives to a trust/company structure noted above Panamanian foundations and hybrid companies are special structures that may meet the needs of certain clients. A foundation is an "incorporated trust" which in appropriate circumstances provides significant benefits. Similarly, a carefully drafted hybrid company can provide benefits to certain clients in certain circumstances.

In the majority of cases a bank account is NOT required, in fact, we generally recommend against opening one for the following reasons:

• a non-interest bearing initial deposit of up to US$5,000 is required
  
• the application process and identification required is onerous and time consuming
  
• a brokerage account combined with Hallmark Trust Limited trust accounts and a Horizon Credit Card can provide a superior transactional and investment option.

However, if you are going to be running an active business that requires cheques payable to the international company to be deposited or your brokerage account is in the name of a company other than Hallmark Trust Limited and you expect to do regular withdrawals, then a bank account is required, in which case we have relationships with major institutions in several jurisdictions as well as the TCI

Yes you can, and for residents of most jurisdictions this is the preferred option. However, for those situations where this is not desirable, Hallmark Trust Limited has an offshore structure that will mitigate any negative effects of a named beneficiary.

As a general rule you should not be the settlor of the trust for tax reasons. Ideally the Settlor will be a non-resident of your home jurisdiction. Hallmark Trust Limited provides non-resident settlors for their clients' trusts.

The laws of the Turks & Caicos Islands require a high level of knowledge about the clients of licensed trust companies. This knowledge is necessary to help ensure that we are not associated with any individuals or organizations whose purpose in setting up internationally is not legitimate and above board and to ensure the Turks & Caicos Islands complies with international standards.

Normally our clients select Nominee Directors and Officers that are provided by Hallmark Trust Limited in order to maximize the tax efficiency of the international corporation. This also simplifies the transaction of business since only one instruction to Hallmark Trust Limited is required who then signs on behalf of the corporation. If individuals are selected as Directors and Officers: they must sign all contracts, etc. and, in many cases, provide full identification to the other parties to the contract - this can be expensive, time consuming and complicated, and they could be deemed as controlling the company by tax authorities and thus be liable for tax on the income of the corporation, particularly if the individuals involved are principals of the structure i.e. those who have forwarded funds to the structure.

An international credit card can provide substantial benefits in a convenient, cost effective way. Hallmark Trust Limited offers its own Horizon MasterCard to its clients. Please visit www.hallmarkhorizon.com for more information.