The concept of a trust is ancient and simple; someone gives their property to another party to hold, safeguard or manage for them, or for the benefit of another.

As the delegates to the Eighth Annual STEP Caribbean Conference gathered at the Fairmont Southampton Hotel April 10-12, it was clear that the world of trusts and trustees has evolved to include sophisticated vehicles for individuals and their families concerned about political risk, forced heirship, tax neutrality, asset protection and investment diversification.

Among the global insurance and investment and other varied industries, trusts are utilised extensively in commercial applications such as pensions and employee benefit plans, insolvency and debt arrangements, financing special purpose vehicles, securitisation and operating underlying companies.

Trusts are unique fluid documents that can be tailored to the needs of the parties.

The drafting of these documents must consider and encompass many complex issues and inherent conflicts; as such, when trust structure is not completely defined, it may be open to interpretation or even construed as inaccurate, incorrect or in worst case scenarios, in court. Throughout the conference three days of scheduling, the latest developments in countries' trusts and tax law, money laundering, client due diligence, tax initiatives, fiduciary and investment management issues, case setting precedents, and practitioner expertise in the trust and estate world were presented to a sold out audience.

Comprising many of the finest minds in the global trust and estate practice, the lecturers, one and all, presented vigorous and well researched summations of the ongoing changes and issues in this multi-billion dollar industry.

Serious, humorous and all well spoken, some of the highlights included a discussion of the common ground between family offices and private trust companies now globally popular as an excellent method for greater involvement over trust affairs while maintaining the integrity of the trust structure presented by Penny Lovell, Fleming Family & Partners and Jeremy Arnold, Withers LLP. Bermuda with its 25 years of experience in Private Trust business is often the primary choice for trust operations.

Self-deprecating, globally known (CNN, CNBC, ABC) Dr. Jeffrey Rosenweig, Goizueta Business School of Emory University waltzed everyone through his global economical forecast of the next 40 years.

His innovative Global Perspectives course is ranked sixth best in the world by Business Week.

Trust disputes being exposed to the media in the digital age were certainly not envisioned in days of yore, when knights were bold (or away at the Crusades) leaving their assets 'in trust' with a good friend for the benefit of their family.

Levick Strategic Communications spoke eloquently on the importance of always being prepared for high stakes media communications.

His firm has represented nearly half the 100 largest law firms in America and their high profile clients.

A touchingly sad tribute to one of Bermuda's finest, Barry N. Meade, QC, a member of Argus Insurance Senior Management team, was presented on his behalf by another fine attorney and former Magistrate Cheryl-Ann Mapp, now compliance manager for Appleby Spurling Hunter. This carefully thought out and concerned script (prepared by Mr. Meade prior to his passing) on the the due diligence issues the industry faces today, serves as an excellent reference for trust practitioners everywhere.

Sh?n Warnock-Smith, QC ? one of the select group of lady Silks, treated the audience to a completely extemporaneous and fascinating discussion of a range of cases and topics of controversy.

With almost complete recall of many cases and moving easily from one jurisdictional set of laws to another to another, this lady was amazing to watch.

Recent Tax initiatives presented by Richard Pease was comprehensive and illuminating, ranging from topics such as OECD latest initiatives, Tax Exchange Information updates, further updates on the EU Tax Directive.

The most recent bill in the UK, the Finance Bill, is of particular interest to global trust practitioners as well.

According to the Guardian Unlimited, more than one million people may need to review their wills following new rules announced April 7, 2006, governing the way trusts are taxed, legal professionals warned. Lawyers, will writers and insurers have been calling on the Government to reconsider plans to introduce a tax on accumulation and maintenance trusts and interest in possession trusts since they were first announced in this year's Budget.

Trusts are often used in wills to enable parents and grandparents to leave money to children without facing an inheritance tax bill and are also used in extended family relationship issues to assure estate distributions to beneficiaries are in accordance with the settlors' wishes.

Trusts will face a 20 percent tax charge on all assets above the inheritance tax threshold of ?285,000 and an additional six percent charge on assets above this limit every ten years, along with a six percent charge on funds worth more than the inheritance tax threshold when the trust is closed.

John Riches, of the Society of Trust and Estate Practitioners (STEP), said he believed that more than one million wills would need to be rewritten to take the new rules into account. "When the government says that only 20,000 trusts are affected by these measures, they appear to be counting only those trusts that submit tax returns, but overlooking the million-plus trusts written into wills," he said.

Pearline Trott, Managing Director of Appleby Trust Company, chaired the conference along with the terrific support from her organisational committee, among them Adrian Meyer, President of Cidel Bank & Trust. Argus Financial Limited was a sponsor of the conference and the Hamilton Series Lecture featuring Dr. Jeffrey Rosensweig.

Martha Harris Myron CPA CFP is a Senior Relationship Manager at Argus Financial Limited. She specialises in providing comprehensive financial solutions to businesses, private investors and their families.

She can be reached at 294-5709 with confidential email at mmyronargusfinancial.bm. This article expresses the opinion of the author alone. Under no circumstances is the content of this article to be taken as specific individual investment advice, nor as a recommendation to buy/sell any investment product. The Editor of has final right of approval over the headlines, content and length/brevity of article.