A trust works by taking assets owned by the person establishing (‘settling’) the trust and putting them into the hands of a trustee. An offshore trust is simply one based in an offshore jurisdiction, with its profits not usually taxable in that location. The trustee normally follows the wishes of the settler. Trusts, which are based in 600-year old English common law, have been in regular use for offshore asset protection for nearly 100 years. Unfortunately, the high-tax countries have therefore had plenty of time to defend themselves against trusts, and by now their usefulness has been severely compromised for the residents of many of these countries.