New research from Skandia International shows that overseas advisors are hesitating to recommend trusts to clients. Only 5 per cent of over 250 surveyed globally stated that they use trusts for the majority of their clients, with three-quarters saying they use trusts for only one in ten of their clients.

Rachael Holland, head of product law and financial planning at Skandia International, said: "Trusts are viewed by many to be complicated which perhaps is why few offshore advisors use them. Trusts need not be complicated and are relevant to the majority of clients that seek financial planning.

"Most people are able to use a trust for some form of protection and trusts could be used more often as they can add real value to investors' financial plans in many cases."