A Nevis Offshore Trust is one of the worlds leading Trust formation structures, along with the Cook Islands, is largely due to Nevis’s formidable asset protection legislation.
As a result asset protection trust companies have become a major attraction for the tiny island with much of its offshore formation services largely revolving around Trust formation or the set up of a Nevis LLC which can have many similar aspects to a Asset Protection Trust.
The Nevis Trust is open to individuals and corporate entities form all backgrounds, with little restriction on the companies formation structure.
Beneficiaries or settlers must, however be non-residents an can not include local real estate. A Nevis Trust must be annually renewed and exists for a lifetime of 120 years
A Trust is an effective tool for
The most effective Trust Formation structure is when a Nevis LLC is held by a Trust. This makes the Trust the wonder of the LLC which you the client would be the beneficial owner/manager
A Nevis Trust can hold not only a Nevis offshore bank accounts but an account from anywhere in the world.
Nevis Trust Legislation protects the settlor and beneficiary from fraudulent claims by imposing significant barriers from attempting to gain access. Only the most willful of creditors would be able to make a claim against it.
If there is any legal claim against the Trust, a 100,000 USD bond must be played by the creditor before the claim is made, and will be risked in losing it if the Ministry feels it is a fishing attempt
A foreign creditor must prove fraudulent conveyance, in that a transfer was not only unlawful but was intentionally done to deceive that particular creditor. There must be evidence beyond a reasonable doubt that a fraudulent transfer was made to directly defraud the specific creditor. This is the only way that any type of legal action can work against a Nevis Trust.
There is a statute of limitations of 1 year of pursuance of any claims. Any claims made after will not be looked at by the Nevis courts.
Creditors pursuing a claim must do so outside of the jurisdiction that they live in. Meaning, if a creditor is from the UK, they can not pursue a claim within the UK legal system, because Nevis is a sovereign nation and does not bow down to foreign court orders.
Nevisian asset protection law seeks to protect its offshore finance industry and clients. Consequently creditors must pursue claims directly within the country and must go through the local court system, which will require time, money, effort and physical presence making only the most willful of creditors the strength to carry through, usually most creditors or grievances upon seeing the hurdles as they will risk losing the 100,000 bond, and in that case the often will drop the legal suit and settle out of court.
There are three main types of trusts that can be formed under this ordinance:
A Trust Deed
A Trust Deed is a contractual agreement that has the details of the Trust and how the assets are to be managed and distributed.
Letter of Wishes
Contains the terms and details of the trust is in which the Settlor gives to the Trustee as per his/her wishes (which is amendable).
There are a number of advantages within a Nevis Trust, which include:
A Settlor is a person who establishes the trust by placing of assets into the trust vehicle. The settlor can also the manager who holds instructions concerning the assets for the beneficiary.
A Trustee holds the legal title, however, they are not able to benefit from the trust. A Trustee acts as a safeguard over the assets in case of legal action against the Trust.
A trust protector has the power to direct a trustee in all matters relating to the Trust as well as the appointment or dismissal of any trustee persons.
Protectors are used mostly for non-charitable purposes and are highly recommended as it gives stability and a layer of internal protection in case there is disagreement amongst any parties of the trust. A protector is usually a family member or attorney.
The beneficiary is included as any person that benefits from the Trust
There are no taxes
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