Benefits of a trust:
Asset protection and
careful planning to
ensure tax efficiency
Succession planning with full control on how assets are distributed upon death
Confidentiality and the avoidance of a public probate court hearing
Why A Nevis Trust?
Many experts view a Nevis Trust as the strongest legal vehicle for asset protection in the world. The law in this jurisdiction contains several unique features, which makes it a significant deterrent to any unexpected future legal proceedings. The most significant of these are outlined below:
- Nevis courts will not recognize judgments made by foreign courts.
- If a creditor does wish to pursue claims against assets held in a Nevis trusts, they are required by law to file proceedings with local courts. Creditors must physically travel to Nevis in order to do so.
- Nevis trusts have one of the shortest statute of limitations on claims of fraudulent transfer provided by any jurisdiction offering asset protection trusts. There is a two-year statute of limitations. Any assets placed in the trust before the earliest cause of action occurring or more than two years after are safe. However, if disposition of assets took place within the two-year period, and the creditor has not commenced action within three years from the date of settlement, a claim cannot be brought. Once the statute of limitations has run out, Nevis courts will dismiss any claims of fraudulent transfer. In addition to the above, there are further hurdles that the creditor must overcome.
- The standard of proof is beyond a doubt and not on a standard of probabilities; the settlor of the trust or member of the LLC must have had the principal intent to defraud at the time of such formation or disposition to such an extent that it renders them insolvent or without property with which that creditor’s claim would be successful.
- The details of the beneficiaries and settlors of a trust in Nevis are not publicly registered. Only the name of the trust, the name of the trustee, and the date of the trust deed are required to be registered. Nevis records are not open to the public.
- Trusts are exempt from Nevis’s taxation, except for the payment of a U.S. citizens and those residing in other countries that tax worldwide income are however required to report all earnings to their respective tax authorities.
In most jurisdictions, trusts have limited lifespans. That is not the case in Nevis, where many trusts can last forever for all intents and purposes. Formerly, non-charitable trusts were limited to 120 years, with no time limit for charitable trusts. But changes in the law allow non-charitable trusts to exist in perpetuity
The Benefits of Registering a Foreign Trust in Nevis
- There is no rule against perpetuities, allowing the trust unlimited duration provided the trustee has unrestricted power to sell all the trust assets. This provision makes it possible to establish a dynasty trust that can last forever.
- The trust cannot be declared void, voidable or defective by reason of any forced heirship rules of the Settlor’s domicile, residence, place of incorporation, formation or establishment.
- Foreign judgments are not enforceable against a Nevis trust and it is not easy to bring action against the trust.
- Confidentiality pertaining to the information of the trusts. A third party/creditor has no automatic right of access to any information on the trust without a court order.
- A Protector may be appointed who is responsible for monitoring the operations of the international trust. This gives the protector the power to ensure that the purpose of the trust is being fulfilled at all times.
- The standard of proof is beyond reasonable doubt and not on a standard of probabilities; the settlor of the trust or member of the LLC must have had the principal intent to defraud at the time of such formation or disposition to such an extent that if render them insolvent or without property with which that creditor’s claim would be successful.
- The details of the beneficiaries and settlors of a trust in Nevis are not publicly registered. Only the name of the trust, the name of the trustee, and the date of the trust deed are required to be registered. Nevis records are not open to the public.
- Trusts are exempt from Nevis’s taxation, except for the payment of a U.S. citizens and those residing in other countries that tax worldwide income are however required to report all earnings to their respective tax authorities.