According to research by the firm, only 5 per cent of more than 250 offshore advisers surveyed globally stated that they use trusts for the majority of their clients.
Three-quarters of advisers say they use trusts for just 10 per cent of their clients.
Forty per cent cite inheritance tax planning as the top reason to use a trust, with asset protection from creditors following closely behind. But trusts can also be used to cover other asset classes such as life insurance policies, direct investments and property.
SI says that by not writing assets into a trust, investors could be putting themselves at risk of having to pay higher tax charges than they need had they used a trust in their financial planning.
Skandia International head to product law and financial planning Rachael Holland says: “Trusts are viewed by many to be complicated which perhaps is why few offshore advisers use them. They need not be complicated and are relevant to the majority of clients that seek financial planning.”