Commercial Aspects of Trusts and Fiduciary Obligations

By Ewan McKendrick | Go to book overview
Save to active project


Jeffrey Schoenblum

1. Introduction

During major international conflagrations and internal political disruptions in the past, corporate and individual capital has sought refuge in the United States and, to a lesser extent, the offshore Caribbean Islands. The conditions that have fostered the flight of capital to these jurisdictions persist and, thus, there is a continuing demand for fail-safe mechanisms for the preservation of the assets of corporations operating around the world.1

The common law trust has been regarded by some as an instrumentality that is capable of assuring the protection of such capital, while preserving flexibility of management and perpetuating corporate control, even though the corporation itself may be under siege. A careful analysis suggests, however, that there needs to be far more evolution in the law and focus on the underlying problem before one can truly claim this new role for the trust. Presently, the asset protection trust may actually be less appealing in many situations than the alternative of inaction or reliance upon certain other protective devices discussed in Chapter 10.

The focus of this chapter is on the United States. It functions as a giant receptacle for assets from abroad. The United States and the sovereign island nations offshore serve as well as the administative centres for trusts and other entities. The purpose of many of these entities is to hold and administer assets already invested in the United States and, possibly, elsewhere in the Western Hemisphere. The purpose of others is to exist in a dormant state, to stand by until a specified emergency arises that triggers the transfer of assets to the waiting trust or other management vehicle.

This chapter focuses exclusively on non-tax matters. While tax considerations are beyond the scope of this chapter, they do play an extremely important role in structuring asset protection vehicles.


Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Cite this page

Cited page

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited page

Bookmark this page
Commercial Aspects of Trusts and Fiduciary Obligations


Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 297

matching results for page

Cited passage

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?