Nevis Trust Law

The Nevis International Exempt Trust Ordinance (“the Act”) was enacted in 1994 and was derived from the English Courts of Equity as modified by the statute. It includes many of the progressive and innovative provisions, which various jurisdictions have adopted into their trust law. The result is a very modern piece of legislation including state of the art asset protection provisions.

Nevis International Exempt Trust Ordinance, 1994

Significant features of the Ordinance are as follows:

Taxation and Registration

• there is a simple procedure for the registration of an international trust. The only information required is the name of the trust, the local registered agent and registered office. The trust instrument does not need to be filed

• an international trust is not subject to any form of taxation

Trustees

• an individual or body corporate may be a trustee

• a trustee can be either a Nevis Licenced Trust Company or a Nevis Business Company. A Nevis Business Company can be a trustee to more than one international trust

Purpose and Spendthrift Trusts

• inclusion of provisions allowing purpose trusts to be created for any lawful purpose

• inclusion of provisions allowing spendthrift trusts to be created

Confidentiality

• inclusion of strict confidentiality provisions. All non-criminal judicial proceedings relating to an international trust are required to be heard in private with no details being published without leave of the Court

Claims, Court Proceedings and Jurisdiction

• provision requiring that any claim brought against an international trust must be brought in the High Court of Saint Christopher and Nevis within two years of the date of the transfer to the international trust

• inclusion of detailed provisions as to what constitutes a fraudulent conveyance and which deem transfers made in specified circumstances not to be fraudulent. The provisions also require the creditor to prove beyond reasonable doubt (the criminal standard of proof) that the international trust was settled or property was transferred to defraud that creditor

• a requirement that a creditor bringing any proceeding against an international trust must place a bond in the sum of US$25,000 with the Nevis authorities

• the High Court of Saint Christopher and Nevis does not recognise judgements which are inconsistent with the provisions of the Act

Proper Law

• provision of a definition as to what constitutes the proper law of an international trust

• provision of a list of factors to determine the closest connection of an international trust, if the proper law is not specified in, or cannot be reasonably inferred from the trust instrument

Bankruptcy

• inclusion of provisions providing that an international trust is not void or violable in the event of the settlor’s bankruptcy under the laws of the settlor’s domicile

Control by Settlor

• inclusion of provisions deeming that the retention of certain powers by the settlor in respect of the international trust or the fact that the settlor is a beneficiary does not invalidate an international trust

• statutory recognition for the use of a protector – the “watchdog” over trust assets and trustee decision

Forced Heirship

• specific provisions protecting dispositions from the forced heirship laws of the settlor’s home jurisdiction

• specific revocation of the application of the Statute of Elizabeth

Perpetuities and Accumulations 

• specific revocation of the rule against perpetuities

• provision for a maximum duration of 100 years for an international trust 

• provision allowing charitable and purpose trusts to have a term exceeding 100 years

• provision allowing income to be accumulated throughout the duration of the trust