Nevis Trust
Since 1994, Nevis has emerged as a premier international trust jurisdiction offering simplicity and flexibility within a sophisticated and business-friendly regulatory environment.
The Nevis Trust, formally known as the Nevis International Exempt Trust provides substantial asset protection measures and appealing tax advantages. Governed by the 1994 International Exempt Trust Ordinance, it streamlines the formation of charitable, spendthrift, and non-charitable purpose trusts.
Unmatched asset protection
Features:
- Seamless wealth succession
- Privacy and confidentiality
- Tax optimization
Nevis Trust Structure
A trust constitutes a fiduciary relationship between three to four parties: the settlor, trustee, beneficiaries, and occasionally a protector. This relationship is formalized through a legal agreement called the Trust Deed.
The settlor, establishes the trust by transferring assets to the trustee, who manages them for the beneficiaries’ benefit.
Appointed by the settlor, the trustee(s) upholds the Trust Deed’s wishes, including safeguarding the trust, managing assets, and prioritizing the beneficiaries’ interests.
A protector (if needed) supervises the trust´s operations, ensuring trustee adherence to the Trust Deed, with potential authority to appoint or dismiss trustees, acting in the beneficiaries’ best interests.
Beneficiaries are the individuals receiving advantages and benefits from the trust, typically governed by terms specified by the settlor.
The Trust Deed outlines trust objectives, trustee and protector responsibilities, and conditions for distributing assets to beneficiaries.
A settlor may also be a beneficiary with no loss of protection.
Key advantages of Nevis Trust
Asset Protection
Nevis employs robust asset protection legislation to proactively deter litigation
- The Statute of Elizabeth does not apply to a Nevis Trust; therefore, transfer of property may not be voided with respect to future unknown creditors.
- A creditor seeking to void a trust must file action in Nevis and must post a substantial bond before commencing action. An elevated standard of proof is required.
- Foreign judgements are not applicable against Nevis Trusts.
- Two-year statute of limitations on fraudulent transfer claims.
Tax Planning
A Nevis Trust offers significant advantages for tax planning due to the jurisdiction’s favorable regulations and tax-related benefits.
- Trusts may be used as investment vehicles.
- No need for the trust deed to be registered. Statutory confidentiality.
- No requirement for filing accounts or annual returns.
- Absolutely no tax on profits, income, dividends or capital gains.
- Nevis Trusts can play a crucial role in estate planning by allowing settlors to transfer assets to the trust, potentially reducing estate taxes upon their passing.
- Depending on the terms outlined in the Trust Deed, a Nevis Trust can distribute income and assets to beneficiaries in a manner that optimizes their tax liabilities.
Characteristics of a Nevis Trust
Formal Name:
Nevis International Exempt Trust
Legal Framework:
Legal System:
Common Law
Perpetuity Period
Indefinite
Re-domiciliation
Allowed
Protector
Allowed
Trustee
Minimum of 1 trustee required; trustee must be a Nevis incorporated entity or individual
Trust Deed
Private
Local Office
Required
Annual Reporting
Not required
Forced Heirship
Not enforced
Statute of Elizabeth Laws
Excluded
Statue of Limitations
1-2 years
Foreign Judgements
Not recognized
Taxes
Exempt
Restrictions
Settlor and beneficiaries must be non-residents of St Kitts & Nevis: local property cannot be placed within the Trust
How to open a Trust - Timeline & Process
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Research and planning
Begin by understanding Nevis trust laws, regulations, and benefits. Define your goals and objectives for the trust.
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Engage professional assistance
Seek legal and financial advice from experts familiar with Nevis trust laws, such as NTL Trust. Choose a reputable trust service provider or attorney.
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Choose Trust Type
Determine the trust type that suits your needs, whether it's a charitable, spendthrift, or non-charitable purpose trust.
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Appoint Trustees, Protector (if needed) and Beneficiaries
Select one or more trustees responsible for managing the trust as well as beneficiaries. Optionally, appoint a protector to oversee trustee actions and list Trustees and beneficiaries can be legal entities or natural persons.
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Draft Trust Deed
Work with legal professionals to draft the Trust Deed, which outlines the trust's objectives, terms, trustee responsibilities, and beneficiary details.
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Transferring Assets
Transfer assets (property, funds, investments) from the settlor to the trust, following legal requirements and guidelines.
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Register the Trust
The registered agent will then register the trust with the Nevis Financial Services Department and comply with any necessary documentation including:
- Name and registered office of the Trust
- Date the Trust is created
- Name and certification of Trustee -
Manage and Administer
The trustees manage and administer the trust according to the Trust Deed's terms, investing assets and distributing benefits to beneficiaries. Trustees will also ensure adherence to Nevis trust laws and regulations, including due diligence requirements, annual fees and tax obligations.
FAQS
What are the key features of a Nevis Trust?
Nevis Trust offers asset protection, privacy, and tax optimization since 1994. It provides seamless wealth succession, confidentiality, and favorable tax advantages within a business-friendly regulatory environment.
Who can assist with arranging a trust?
Professional assistance from experts familiar with Nevis trust laws, such as NTL Trust, and reputable trust service providers or attorneys can help arrange a trust efficiently and effectively.
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