St Kitts and Nevis
Trust and Asset Protection

Why is the Nevis Trust Better than the Cook Islands Trust?

8/3/2021 8:00:00 AM
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The secret of truly wealthy families has less to do with how they came to accumulate their wealth and more to do with how they have managed, protected and passed it on from generation to generation. 

While people with an anti-wealth mindset put their money under the mattress, or in the bank (which is sometimes just as bad or worse), individuals and families who are serious about their wealth use trusts.

Those who seek to protect their wealth and money know that banks are not the place for this. Primarily because the money you deposit in a bank account is used by that institution in non-transparent ways, but also because in times of crisis and uncertainty (just like the one we are living in today) you have no guarantee that you will be able to access your funds in cash.

Trusts are superior to banks when it comes to asset protection.

For over 800 years the world's wealthiest families have used the trust structure to protect their wealth against wars, governments and catastrophes that have plagued the world throughout history. And contrary to what you might think, this type of structure is not limited to the wealthiest individuals and families on the planet. Today you don't have to be a millionaire to have a trust in a good jurisdiction. 

As I write this, the world is going through one of the most complex and terrifying crises in recent history: the global coronavirus pandemic. This scenario has allowed us to see how governments, at the slightest sign of alarm, begin to restrict and control economic freedoms. 

It is this reality that has got many of our readers thinking about ways to protect their assets away from the clutches of governments and malicious individuals. Thus, interest in trusts today is greater than I have seen in years past.

Why a Trust?

Setting up a trust correctly is the best way to guarantee the protection of your assets against any known or unknown risks. The reason is simple, the trust allows you to "control everything without owning anything" as the phrase attributed to Rockerfeller goes.

We know it may sound counter-intuitive to stop owning your assets. But the concept is simpler than it sounds.

Through a trust, your estate comes under the control of a "custodian," which can be an individual or a legal entity. The way to remain in control is through the incorporation of a structure such as an LLC (under your control) that serves as a trust company for your trust. 

In other words, a trust allows you to legally separate yourself from your estate but maintain control over it. It is a layer of security that in some jurisdictions is virtually impenetrable.

St. Kitts and Nevis and the Cook Islands, The Two Best Jurisdictions When It Comes to Establishing a Trust

In general, trusts operate under the same principle of asset protection, but the level of protection will always depend on the legal framework in which these structures are established. In other words, the choice of the country for your trust will play a fundamental role in the degree of protection you manage to generate for your assets.

For years, two jurisdictions in the Caribbean have been the main options for investors, family offices and high net worth individuals when it comes to establishing a trust for the protection of their assets. We are talking about St. Kitts and Nevis on the one hand, and the Cook Islands on the other. But let us tell you in advance that we at Mundo strongly believe that the advantages offered by Nevis make it undoubtedly the best alternative.

In general, trusts in these two jurisdictions are based on similar legal principles (with few differences) and offer a fairly similar set of advantages including:

● Courts in these jurisdictions do not recognize court orders from other countries,

● Whoever attacks a trust in these jurisdictions must do so in the jurisdiction and in some cases requires a substantial sum of money to do so,

● They are tax free structures,

● They have high levels of privacy in terms of the information registered and filed with public entities,

● They allow the establishment of trusts with perpetuity structures.

You may be wondering how is it that if both jurisdictions have such similar conditions, we at Mundo are so confident that Nevis is the best option to have a trust. 

Our reason for recommending Nevis over the Cook Islands when it comes to trusts is quite simple: the behavior of both jurisdictions in the face of attempts to intervene in these types of structures. 

There is a principle among psychologists that "the best way to prepare for future behavior is to look at past behavior". In this case we are not talking about patients, but about jurisdictions. And in this respect, Nevis has not a blemish, while the Cook Islands has an unfavorable track record that puts it in second place.

The Cook Islands authorities allowed a trust established in their jurisdiction to be intervened in a lawsuit some time ago, while judges in St. Kitts and Nevis have even resisted court orders from central authorities in the United States.

It is Nevis' impeccable track record that allows us to choose it with our eyes closed as the best jurisdiction to have a trust.

If you want to know all the details about the Nevis trust, do not hesitate to read the section of our Country Page about it. 

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Who are we and what can we do for you?

At Mundo, we introduce ourselves as the best allies for international investors, family offices, and high-net-worth individuals who are looking for opportunities to increase their level of freedom. We specialize in finding the best jurisdictions to invest, obtaining second passports, and of course, establishing trusts to protect assets.

Especially in today's world where the world's major powers are stifling their citizens with higher and higher taxes and threatening financially successful people with stripping them of their wealth, we believe it is crucial to have all the information and tools available to invest and protect your assets wisely.

Our work for the past 30 years has been exactly that. To accompany people in the process of investing and protecting their assets in jurisdictions of the highest standard.

The mission we started three decades ago has today made us a global team with presence in the best jurisdictions of the five continents, but our work started in Nevis, so we know well all the benefits that this beautiful tropical paradise offers for those seeking a safe harbor for their wealth.

A Nevis trust can prepare you to weather the great financial crisis that is about to erupt around the world. And our experts can help you set up this structure without you having to worry about details and paperwork.

Don't hesitate to contact us now to meet the experts who can help you set up a trust in Nevis.

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