Participation Trust for Succession Planning

The Participation Trust was developed by Fidelitas to provide a simple and flexible solution to succession planning for owners of shares in some international and offshore companies.

The Participation Trust structure gives owners of shares in an offshore or international company unprecedented freedom to manage succession to those shares with minimal interference to the business of the company, or enjoyment of the company’s profits. It has the added advantage of completely avoiding a public application for probate in the company jurisdictional Courts, and therefore maintains confidentiality, saves costs and avoids the inevitable delays that application for probate would entail.

In brief, Participation Trusts provide:

- Automatic succession to shares in the event of death or incapacity;
- Automatic succession of directors in the event of death or incapacity;
- Retention of control, voting and income rights;
- Full reversibility at any time.