Samoa has provided trusts solutions since 1988; the reinvention of this service through the Trusts Act 2014 which repealed the old International Trusts Act 1988 is another recent move by Samoa to provide up to date Trust solutions for clients seeking an alternative.

Under the Samoan Trusts Act 2014, Trusts can either be Charitable or for a Purpose and even more exciting is the concept of a SISTA (Samoa International Special Trust Arrangement).

An unique aspect of Samoa’s Trust law is that the Trust documents can be in any language as long as a proper English translation is provided. Samoan Trust law provides sufficient protection against foreign succession rules or claims in foreign matrimonial proceedings, which are as good as in any other jurisdiction. Asset protection has a 2 year rule so that if the creation of the Trust and any disposition to the Trust took place more than 2 years after a creditor’s cause of action arose against the Settlor (the creator of the Trust), the Trust and the assets transferred to it are protected from the creditor’s claim. This is a sensible period, being neither too short, and thus open to criticism or failure, nor too long to be impractical. The duration of a Samoan trust is very flexible as it can continue indefinitely or it can last for a fixed period. If it lasts for a fixed period, then this period can be made longer or shorter or the Trust can be changed to continue indefinitely. If the Trust continues indefinitely, then it can be made longer or shorter or the Trust can be changed to continue indefinitely. If the Trust continues indefinitely, then it can be changed to last for a fixed period. With a Samoan trust income can be accumulated throughout the continuation of the Trust. The provisions for both a Protector and an Enforcer of a Purpose Trust are as good as in any other

jurisdiction. Trustees have a statutory duty of care to be observed in their exercise of certain powers. The statutory duty of care for Trustees is included in the Trust Deed and is particularly helpful and reassuring for Beneficiaries as it demonstrates the standard of care that Trustees must exercise. For a Samoan Trust, these provisions follow those in the UK and Singapore as well as specific and detailed powers concerning investment, delegation, the use of

“A Samoan Trust is very flexible, as it can be perpetual or it can last for a fixed period…”

nominees and custodians, insurance and the remuneration of Trustees. Wide reservation of powers is available under the Samoan Trust Act 2014 which compares well with what is provided by jurisdictions such as Cayman, Dubai Jersey and Labuan. There is also provision for “prescribed directions”, which is what a Settlor can give to a Trustee, when the Settlor has reserved powers. The Trustee is protected if it complies with such directions and is a unique feature of Trust law in Samoa.

There are other ways to ensure continuing control by a Settlor and others is sustained even though there is a Trust. This can be in the form of a Reserved Power Trust or alternatively the Trustees must hold the trust property for the Beneficiaries and exercise proper control over it.

Another method is the use of a Private Trust Company (PTC), which may be owned, for example, by members of the Settlor’s family, or by a Purpose Trust, or by a company limited by guarantee or by a Special International Company, which is unique to Samoa. The PTC provisions and requirements are similar to those of Singapore and are as good as those in any other jurisdiction.

The Samoa International Special Trust

Arrangement (SISTA) is similar to the Virgin Islands Special Trusts Act (VISTA) and to the Labuan Special Trust (LST). The objective of a SISTA is to permit a Samoan Trust to hold and not diversify the shares of a Samoan company and let others other than the Trustees act as directors of the company, without the Trustees being involved or liable for the acts or omissions of the directors.

There is also a structure combining a Trust with a Limited Partnership. This enables a Samoan Trust to hold as an asset the interest of a Limited Partner in a Limited Partnership and permits the General Partner, who is required by Limited Partnership Law to control day to day direction and management of the Limited Partnership (as well as hold the assets for the partners of the Limited Partnership in the ratio in which they share the capital of the Limited Partnership), without the Trustees being liable for the acts or omissions of the same. Samoa is unique in having legislated for this. This solution does not confine the structure to one jurisdiction (like SISTA) but rather the Limited Partnership and any companies involved can be formed in any jurisdiction. Also, since the Trustees do not hold the actual assets but merely an indirect interest in them, they cannot misappropriate anything.

Samoan Trusts have been designed to meet the wishes and needs of clients and their advisers for family successions, asset protection, ongoing control and other reasons for international estate planning. It is clear that the features of a Samoan Trust will provide numerous benefits for clients immediate needs and future proofing.

being assessed for the benefits, risks and challenges it holds from a regulatory perspective as well as for potential clients.

The increasing interest in the use of various FinTech solutions for financial services is clear, and its potential benefits for Samoa as an offshore jurisdiction. However it is equally important to recognise the challenges and risks associated with FinTech. In that regard, the Samoa International Finance Authority is taking a cautiously curious approach towards developments in the FinTech space.

Because of the global technology network and the international nature of financial services, this may be one of the few emerging services and sectors to have the development of a regulatory regime play out simultaneously across legal jurisdictions around the world. As jurisdictions with different regulatory philosophies, legal systems and roles in global financial services attempt to define the regulatory needs and implement them, there is an enormous risk that a patchwork of varying and conflicting rules will arise. Samoa recognizes the fast development and availability of Financial Technological services and is continuing to explore the relevant factors, not to mention the need for specialised skills to implement a robust supervisory system, before the consideration of introducing necessary legislation.

The Offshore Financial Market is constantly changing making it a volatile environment for business. However, despite its volatile nature Jurisdictions quickly adapt and adopt best practices to provide efficient, effective and timely international solutions for clients. One of the international issues developing interest is the need for estate planning domestically as well as abroad. The rapid increase in international investments and business, and the change in the entrepreneurial mindset has brought to light the importance of addressing issues pertaining to international estate planning. As a result, there has been an increase in the demand for Professionals with general expertise in identifying and navigating the complex planning and regulatory compliance issues; both legal and tax related, involved in international estate planning.

Samoa is one of few jurisdictions that has recognised this trend and has provided international solutions under the Trusts Act 2014 and Foundations Act 2016 for clients who wish to structure their wealth to achieve fam

ily succession and asset protection. It is intended that trusts and foundations will offer alternative but similar solutions, the former being unregistered and the latter registered. There are numerous benefits associated with Samoan Trusts as mentioned in this issue “Samoan Trusts: A comparative analysis”, and highlighted in the Comparison Table (page 3). The benefits of a Samoan Foundation, such as asset protection, as well as the combination of a foundation with a limited partnership is also possible with Trusts. Samoa is the only jurisdiction that legislates for this kind of a structure, giving it a competitive advantage as clients and their advisers are given assurance in the absence of case law.

Recognising the increase in interest on international estate planning, INVEST SAMOA has conducted numerous local trainings for its Professionals, International Seminar Presentations as well as follow-up meetings with advisors and professionals in locations such as Hong Kong, Singapore, Dubai, and London. Following these Presentations and meetings, it is clear that

clients are becoming more astute about financial planning, and are seeking digital capabilities and better advisory options. On the regulatory front, compliance mandates make wealth management appear difficult, particularly in terms of structuring, however almost all the requirements focus on protecting the clients and their information, as well as ensuring the legal aspects are met, which only enhances the value of the solution.

The complexity of international estate planning with regard to management and addressing compliance issues, such as structuring an individual client’s assets require careful consideration and modification according to each situation. In this space, the Samoa Trusts Act 2014 and Foundations Act 2016 provide sensible benefits and structuring for clients seeking international estate planning solutions that are tailored to the client’s needs and totally in line with international regulatory requirements; striking the right balance!