They apply to settlor interested personal injury trusts in the same way as they apply to trusts founded from non-personal injury related funds.
42.
For a settlor ( creator of a trust ) to avoid tax there may be restrictions on the type, purpose and beneficiaries of the trust.
43.
As long as the settlor is a beneficiary of the trust to any extent, to that extent the trust will be deemed self-settled.
44.
If the protector has power to grant beneficial interests in the trust fund to the settlor, this may have disastrous tax consequences in some jurisdictions.
45.
An ancient king ( settlor ) grants property back to its previous owner ( beneficiary ) during his absence, supported by witness testimony ( trustee ).
46.
In a relevant sense, a trust can be viewed as a generic form of a corporation where the settlors ( investors ) are also the beneficiaries.
47.
If a judge determines that the trust settlor controls the assets of the offshore trust, the judge may order the settlor to repatriate the trust assets.
48.
If a judge determines that the trust settlor controls the assets of the offshore trust, the judge may order the settlor to repatriate the trust assets.
49.
For this reason, a properly established asset protection trust should provide a clear separation between the settlor and those who exercise control over the trust assets.
50.
In the event of the settlor dying within seven years, this retained " bag of rights " should in theory be returned to their personal representatives.
