The Pathway To Set Up A Trust In Nevis

Surrounded by the crystal-clear water of the Caribbean Sea and filled with pristine shores, this island belongs to the country of Saint Kitts & Nevis. It offers options for everyone, whether you love local food, cultural events, adventure, sports or just a feeling of relaxation.

Therefore, the services and tourism industries are the major economic sectors. Moreover, the island’s nature will seduce you with its tropical rainforests, majestic mountains, and impeccable beaches. Indeed, it sounds like a dream location for an excellent vacation, right?

There's another hidden facet nobody mentions. That is the booming financial industry in Nevis. This Commonwealth island is a strong player in the asset protection business. Throughout this article, we will discuss everything a Nevis trust can offer. This might be a fantastic choice for relaxing, even if you're not precisely enjoying the holidays there.

The Nevis legislation doesn't recognize foreign judgments

Main features of the Nevis Trust

This legal instrument is regulated by the Nevis International Exempt Trust Ordinance 1994, amended last in 2016. Although other jurisdictions have passed new laws to compete in the offshore trust sector, Nevis delivers much security and practicality to the settlor. And that is precisely what you need when the goal of your country's government is taking your assets and making it more difficult for anyone to achieve financial freedom.

If a creditor wants to bring any action against any of your trust’s property, they must pay upfront a $100,000 USD (ECB 270,000) bond to the Nevis Ministry of Finance. Furthermore, the Nevis legislation does not recognize foreign judgments, which makes the trust even more secure. Regardless of who wants to seize your assets, you can be sure they will be vigorously protected.

In terms of taxes, Nevis is a nightmare for socialists, just what you wanted. Namely, no gift, income, inheritance, corporate, withholding, or stamp taxes ever apply. If you possess assets outside of the islands, they are not liable to taxes either, for the trust (and not you) owns them. Control exchanges are not applicable either. However, the trust shall not hold any Saint Kitts and Nevis real estate. That makes this trust a good tool for growing your wealth.

Related content: Guide To Setting Up A Trust In The Cook Islands

You can set up a Trust in Nevis for charitable purposes

HOW TO OBTAIN A TRUST IN NEVIS

The use you can give to this is personal. Still, it is generally a good practice to establish a Nevis trust if you want to benefit someone (including you, more details later on) or charities or non-charitable organizations. The regulation considers three additional international trusts:

• Spendthrift (or Protective) Trust means that a beneficiary will be protected against the claims of creditors. This makes a protective trust a financial shield against potential bankruptcy.
• Charitable trusts will favour poverty relief, the advancement of religion or education, human rights and fundamental freedoms, etc.
• Non-charitable trusts must have a lawful and moral goal and not be contrary to the country's public policy.

At least one trustee is required. According to the last amendment, a trustee is:

• A registered agent.
• A company instituted under the Nevis Business Corporation Ordinance and acting as a trustee of an international trust.
• A Limited Liability Company (LLC) founded and registered under the Nevis Limited Liability Company Ordinance and acting as a trustee of an international trust.
• Or a multiform foundation established and registered under the Multiform Foundations Ordinance and whose multiform is a company foundation.

It should be noted that if a trust is set up for charitable purposes, there can be up to four trustees, and if over four people are named trustees, only the first four will be trustees. The trust cannot cease, even if, at some point, there are fewer trustees than mandated by the Trust Deed or no trustees at all.

Related content: Guide To Setting Up A Trust In Monaco

Setting up a Trust in Nevis will also pass your assets on to the future generations

RESPONSIBILITIES OF THE TRUSTEE

Trustees have a great responsibility because they manage the wealth of settlers; thus, the law is severe for those who need to do their job correctly. Put simply, trustees must keep track of each transaction and documentation related to the Trust. All investments, income, sales, purchases and transactions other trustees perform must be recorded. On top of that, trustees should keep the books of account for at least five years. A trustee shall pay a $5,000 USD fine if he does not fulfill his duties. If any action from foreign courts were brought against a trustee, they would have to immediately cease to be the trustee of such trust in every respect. Therefore, they would lose every authority over the Trust. The same applies to protectors.

As you can tell, trustees and protectors face a complex tax, and there is almost no room for them to make a single mistake. In case they do, they will quickly be replaced.

Like any trust, there is also the option of hiring a protector responsible for appointing or dismissing trustees or the surveillance of trustees' actions. Even though it is not mandatory to employ a protector, it is the case if the trust's purpose is not charitable (for example, animal care). Moreover, none of the beneficiaries or the settlor can be residents during the existence of the trust.

This Trust is free from the “rule against perpetuities” unless explicitly required by the Trust Deed’s terms; the trust's duration finally became unlimited thanks to the 2016’s amendment.

An interesting fact is that, as a grantor, you can also act as the only beneficiary of the trust. Of course, others, such as family members, spouses, or charities, can also benefit. The grantor can impose some restrictions and responsibilities upon the beneficiaries so that they can get their part of the trust.

Remember that this tool will also allow you to plan your estate and help your inheritors deal with potential problems such as lawsuits, judgements and creditors. Not only will you protect your assets, but you will also pass them on to future generations who will enjoy protection against litigation even before it begins.

To establish a Nevis trust, you must assure the certainty of intention, the certainty of matter, and the certainty of an object. Respectively, they mean that you wish to transfer the assets to a trustee, how you want them distributed among the beneficiaries, and who exactly the beneficiaries are.

Related content: The Basics Of How To Get A Second Passport Or A Second Residency

You must assure the certainty of intention to establish a Nevis Trust

Conclusion

This trust possesses many positive aspects, such as solid privacy and protection against lawsuits, good management of assets, proper estate planning, and most importantly, no taxes and much flexibility. Consider this vehicle for protecting your hard-earned wealth and securing your new life abroad.