By transferring ownership of assets into a trust, it is possible to defer or remove certain tax liabilities that would otherwise erode your wealth. Trusts are very efficient in reducing taxes arising on the assets placed in the trust and provide an effective shield between the settlor, the beneficiaries and the trust assets.
Guernsey-based trusts are not subject to Guernsey income tax as long as the beneficiaries under the trust are not Guernsey resident, and any income arising is from outside the Island. There are no gift, capital gains or estate taxes payable in Guernsey that might affect the value of the assets within a trust.