Trusts
With the ever growing threat of predatory lawsuits, punitive and retroactive government regulation, and the generally uncertain climate, asset protection trusts have become an important financial planning tool for doctors, entrepreneurs, developers, professionals, businessmen and women and anyone who has assets they do not want to lose. Nevis Trust Limited can structure an asset protection trust as a stand-alone entity or in conjunction with individual or family estate planning. Further, these trusts may maintain ownership positions in corporations, LLC's, family limited partnerships or any other recognized entity, and hold their assets anywhere in the world. Assets do not have to be held in Nevis unless so desired by the owner. A trust can be crafted to accomplish a wide variety of goals in addition to estate planning.

• The Act forever exempts an international trust and its income from corporation, gift, withholding, estate, asset, inheritance, succession and stamp taxes.
• In the event of litigation attacking the trust itself, or transfers of property to the trust, the burden is on the creditor to establish, "beyond a reasonable doubt," proof of intent to defraud by the settlor. A sworn Declaration of Solvency executed by the settlor at the time of settlement is prima facie evidence that the settlement and disposition of assets were not made with intent to defraud creditors.
• Any legal challenge to a trust must be made within the first year of the trust's existence. Any such claim must be made to the High Court in Nevis. No outside legal action, judgment or order will be recognized in Nevis.
• An international trust's perpetuity cannot exceed 100 years. If this period is specified in the trust, the rule against perpetuities does not apply.
• A charitable trust can be established to relieve poverty, advance education and religion, or support other purposes beneficial to the community within and outside Nevis. Charitable trusts can include provisions benefiting one or more private beneficiaries.
• A trust can be transferred from another country and immediately qualify for registration without challenge under the one year statute if it has previously been in existence for twelve months.
• To clarify the governing law of a Nevis Trust, the Act states: "An international trust's express selection of the laws of Nevis to govern the trust is valid, effective and conclusive regardless of the settlor's country or residence, the location of the trust property or any other circumstances".
• Where the proper law of trust or the law governing a severable aspect of a trust is changed from the law of another jurisdiction to the law of Nevis, no provision of the old law shall operate so as to render the trust void, invalid or unlawful.
• The terms of an international trust may, if so desired, make the interest of a beneficiary subject to diminution or termination in the event of the beneficiary becoming liable to seizure or sequestration for the benefit of creditors.
• The terms of an international trust may provide that the protector shall have the power to remove a trustee and appoint a new or additional trustee. The protector may have veto power over the trustee. Additionally the protector of a trust may also be a settlor, a trustee or a beneficiary of the trust. The protector will not be accounted or regarded as a trustee.
• Any person or company dealing with a trust is considered a fiduciary agent and is bound by strict trust secrecy laws that have penalties including large fines and imprisonment.
• Any person or entity that files a lawsuit against an exempt international trust must first post a cash bond in Nevis to insure that legal fees and court costs for the plaintiff are fully covered. Further, if the plaintiff is unsuccessful and loses the suit, he will not only pay his legal fees but those of the defendant as well.
• Although it is not necessary to register the trust document with the Registrar, the registered agent for each exempt international trust must obtain a registration certificate and an annual certificate of good standing. Both are issued with the trust name only; no details of the trust are included with the filing.

Nevis Limited Liability Companies
Using a Nevis Limited Liability Company (LLC) for business can avoid many of the corporate legal pitfalls of the past and provide substantial asset protection. When used in conjunction with estate planning, the LLC can give you total control, may significantly reduce or eliminate inheritance taxes and provide strong asset protection. The following are a few examples of how a Nevis LLC may be used:

• A Nevis LLC can be structured in any form, to accomplish almost any legal activity. Each LLC begins like an open drawing board, its design can take any form and accomplish most business, family or investment goals.
• The Nevis LLC has minimal reporting requirements; consequently fewer form are filed.
• If the company (LLC) conducts business in the U.S., and has U.S. source income, it can be set up for profits to flow to the owners or managers, in any proportion outlined in the company operating agreement. This creates taxation at the individual level rather than the corporate level, thus avoiding the possibility of a restatement for dividends.
• Conversely, the LLC can be structured, if so desired, so that taxes stay at the company level.
• Ownership can be in registered or bearer form.
• There are no requirements to keep minute books or observe other corporate formalities.
• There are no requirements for annual directors meetings.
• The Nevis LLC Ordinance specifically precludes officers and directors from company liability by disallowing the possibility of piercing the corporate veil or an alter ego theory.
• If you have a judgment creditor, with regard to your interest in a Nevis LLC, the judgment is by law reduced to a charging order. This means that the creditor is only entitled to your share of distributions from the LLC, and only if you elect to make distributions. If there are profits and you elect not to make distributions, the company (LLC) can issue a form K-1 (equivalent to a form 1099) to the holder of a charging order, thus putting the creditor in the unenviable position of having to pay taxes on money he never received.
• If a creditor has a charging order (judgment) against your interest in an LLC, unlike a corporation, he will not be able to seize your interest in the company. Further, he cannot replace you as an officer or director of the company. He will always be subject to company dictates.
• Unlike a trust, even if you are in the midst of litigation, you can place assets into an LLC without fear of a claim of fraudulent conveyance. If properly structured, you have actually conveyed nothing; you have only changed the nature of the asset. Now, instead of owning cash, stocks, bonds, real estate or other assets, you have exchanged those assets for an ownership interest in an LLC There has been no conveyance, you still own it, but the nature of the asset has changed from the asset itself to an interest in an LLC which owns the asset.
• For estate planning LLC's work extremely well. If properly structured, the LLC ownership may be nontransferable and, consequently, non marketable. Under this scenario, court-mandated IRS guidelines permit the value of almost any asset you place into an LLC to be appraised at less than it's actual face value or market value. In effect this allows you to place into the LLC assets valued at substantially more than the $1,200,000.00 unified credit that you and your spouse are allowed by law. Now, one can considerably lower the appraised value of these assets, and pass them on (now or later) to children or heirs. In many cases, assets far in excess of the $1,200,000.00 joint unified credit can be transferred to heirs tax free. This scenario has been successfully tested in the courts many times. The tax savings are potentially too great not to seriously consider this option.
• If properly structured, you may gift the bulk of your interest in the LLC to your heirs, while still maintaining all income rights and management control of the company. Another possibility is to never have more than a minimal interest in the company, yet, secure from the beginning, all income and management rights. Having control and vesting ownership elsewhere can be a powerful tool, especially when control cannot be changed or taken away.