September 16, 2020 Connor Steens

WHY A NEVIS OFFSHORE TRUST IS BENEFICIAL FOR ASSET PROTECTION

BY CONNOR STEENS

The Nevis Offshore Trust is a foreign asset protection structure renowned for its flexibility and impregnable character, with numerous advantages that are worth being noted.  An international trust remains an important feature of the asset protection and estate planning journey and wealth management veterans agree that the Caribbean island of Nevis provides industry-leading asset protection.

The Nevis International Exempt Trust Ordinance (“NIETO”) is the governing legislation for international trusts. The NIETO allows for the creation of various types of international trusts, including Charitable Trusts, Non-Charitable Trusts, Spendthrift or Protective Trusts and Qualified Foreign Trusts.

A Nevis trust includes the following advantages:

  • Foreign Judgements – are not enforceable under Nevis law.
  • Discourages Frivolous Claims – a foreign creditor is required to post a security bond of USD100’000 before bringing about a claim in the Nevis Courts.
  • Day One Protection – assets placed into a trust before a creditor’s cause of action arises are protected from future claims by any such creditor.
  • Statute of Limitations – there is a two-year statute of limitations for actions brought against the trustee of a Nevis Trust. Where a fraudulent transfer to a Nevis Trust is alleged, the creditor must prove to the Nevis court beyond reasonable doubt that this has taken place.
  • Rule of Perpetuities – A Nevis Trust has no rule against perpetuities. Provided the trustee has unrestricted power to sell all trust assets, the trust has the potential to last indefinitely.
  • Forced Heirship Rules – these are specifically excluded.
  • Settlor and Beneficiary – may also be the same person.
  • Settlor and Beneficiary – must be non-resident.
  • Enhanced Confidentiality – A Nevis Trust is protected by strong privacy laws. A third party or creditor has no automatic right to access any information on the trust without a court order.  This information is not available on a public registry.
  • Income Tax Exempt – The Nevis trust is a tax neutral product and is exempt from local income, withholding and capital gains tax. This removes the possibility of double taxation.
  • Protector – A Protector may be appointed to ensure that the purpose of the trust is being fulfilled at all times. The Protector may be the same person as the Settlor.

The Nevis trust can be an asset protection vehicle for an individual or company. Southpac clients often elect to establish a Nevis LLC underneath the Nevis Trust, adding another layer of protection to the overall structure while maintaining flexibility. Within this structure Southpac can assist with offshore investment and banking options.

Southpac has nearly 40 years of experience establishing foreign asset protection structures. If you are interested in alternative structures please read “A Beginners Guide to Offshore LLCs and Trusts.”

If you would like to request further information on a Nevis Trust or simply consider your options with one of our staff please Contact Us.

 

Connor Steens

Connor Steens works as an Analyst at Southpac Group. Connor has worked closely with Guy on investment an banking relationships. Connor currently oversees and monitors current marketing analytics, exposure and direction, content creation and market presence.
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