A corporate solution for the limitations and problems encountered with trusts and foundations has existed for some time and is rapidly gaining popularity. This solution is the Manx hybrid company; a versatile corporate vehicle, which can provide many of the estate planning advantages of a discretionary trust without the historically associated difficulties.

Both Isle of Man Companies Acts provide for hybrid companies and offers a number of advantages over a traditional trust or foundation

Company law regulates the hybrid and is more certain than trust law, which has many uncertainties and interpretations
Subject to its constitutional documents or any regulatory or licensing requirements it can trade without restriction, thereby providing a more flexible entity than a trust;
It can be more versatile than a trust in that it is capable of being used to achieve several objectives;
The Beneficial Owner, though legally fully divested of his assets, can at the same time exercise a measure of control over them; Trust
It has continuity and can last indefinitely, unlike a trust, which is generally subject to the rules against perpetuity (perpetuity period of an Isle of Man trust is 150 years);
Unlike the trust there is unlikely to be any problem over being recognised as an incorporated body;
It is a legal entity with limited liability, unlike the trust where the Trustees can face unlimited liability.

At Sentient, we have significant experience in the establishment and management of Hybrid structures and are one of few providers to offer this solution.

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