Nevis has an excellent legislative and common law framework for the establishment of asset protection trusts. Some important features of the International Exempt Trusts Ordinance 1994 are:
A trust which is registered under the International Exempt Trusts Ordinance 1994 is entitled the benefits and protection provided for by the Ordinance.
Application for registration is made by a Registered Agent (see above).
Any information pertaining to an international exempt trust including the trust deed and identity of the parties is subject to the Confidential Relationships Act 1985.
The Ordinance creates a flexible tax neutral environment in which the familiar concepts of English trust law can be use.
The trustee(s), beneficiaries and settlor of an international exempt trust are all exempt from tax in Nevis.
The perpetuity period for a Nevis international exempt trust is 100 years.
Some important asset protection features of a Nevis international exempt trust are:
An international exempt trust will not be void or voidable as a consequence of the setttlor's bankruptcy even though the trust may be treated as void in the settlor's home jurisdiction.
A creditor bears the onus of proof to show that a trust was established by a settlor with intent to defraud creditors. The standard of proof required to be shown by the creditor is "beyond reasonable doubt".
A transfer to an international exempt trust by a settlor is deemed NOT to be fraudulent if:
The transfer takes place more than 2 years after the date upon which the creditor's cause of action (against the settlor) accrued; or
Where the transfer does take place within 2 years from the date of the creditor's cause of action accruing, that creditor fails to commence proceedings in respect of that cause of action within one year of the date of such transfer.
Foreign judgments against the settlor, trustee, protector or any beneficiary of a Nevis international exempt trust are unenforceable in Nevis to the extent that the judgment is inconsistent with the laws of Nevis.
The so called "Statute of Elizabeth" is not applicable in respect of a Nevis international exempt trust.
The retention by the settlor of certain powers and benefits will not invalidate the trust.
The interest of a spendthrift beneficiary cannot be alienated by a creditor.
Forced heirship rights in the settlor's home jurisdiction cannot be enforced against the trust.
Creditors who wish to commence proceedings in Nevis against a Nevis international exempt trust must firstly post a bond with the Permanent Secretary of the Ministry of Finance to secure the payment of all costs which may be awarded against the creditor/trustee in the event of an unsuccessful claim.
Existing trusts may be re-domiciled into Nevis as international exempt trusts.
International exempt trusts are exempt from any tax in Nevis.
Please follow the links below for more information on Nevis companies:
Nevis Limited Liability Companies
Nevis International Companies
Nevis Insurance Companies
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