Glossary Item

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Settlor Benefit

Any benefit from a trust that is returned to the settlor.

Under UK law such benefits are prohibited but many tax haven / secrecy jurisdiction locations permit the creation of trusts from which the settlor may benefit as a beneficiary or by way of return of the trust prop­erty. There is some doubt about whether arrangements of this sort can properly be considered to be trusts. They might instead be considered shams but without access to detailed knowledge of the trust arrangements that can be hard to prove.


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