Trust in Nevis
Maybe you've heard about a jurisdiction called Nevis, and maybe you're familiar with the Nevis trust. In this case, you already know that this small island is one of the top trust centers in the world along with countries like Belize, the Cayman Islands, the Cook Islands and, surprisingly, some of the US states.
In our commitment to providing nothing but the best financial services and helping our clients achieve the ultimate freedom, we can't overlook a country like Nevis. If this is the first time you hear about Nevis trust formation, here are a few facts that will help you understand the importance of asset protection in Nevis.
The best offshore asset protection in Nevis
Many international publications like Time magazine describe Nevis as the Fort Knox of asset protection. In fact, this is not far from the truth because this jurisdiction brings excellent asset protection for HNWI individuals. The trust legislation of this island was modeled after the Cook Islands trust law making it as solid as a rock when it comes to protecting assets and saving them for the next generations.
Backed up by solid history and a firm regulatory framework
Like a Nevis offshore company or a Nevis LLC, the trust has proven to be quite protective. This is backed up by cases in which international authorities were not able to set aside the structure because this can only be done by the Nevis court. This means that no one will be able to touch your assets including ex-spouses, bankruptcy agents, creditors, and any other type of claimants. It's worth noting that Nevis trust formation will also protect you from a forced inheritance, a common problem in many countries.
If, by any chance, a person should decide to start legal action against your assets under the trust, he or she will have to proceed through Nevis law and this entails high legal costs and substantial deposits. This clearly discourages any person who wants to attack the trust or at least makes them think twice about it.
Flexible tax regime
Asset protection in Nevis is quite powerful because it helps you reduce tax erosion as well. If you're looking for a legal way to reduce your tax burden, this is it. A Nevis trust is a tax-free vehicle that allows you to grow your fortune in perpetuity.
Inheritance processes can be a nightmare and are usually quite expensive too. One of the perks of Nevis trust formation is the possibility to create a dynasty trust which allows families to hold their wealth under the structure virtually forever. Arrange your affairs in advance and rest assured that after you're gone your children and grandchildren we'll have access to your fortune.
Although Nevis has subscribed to the CRS, it remains a confidential and safe banking jurisdiction. Gone are the days when people could just hide money away in a foreign country because international regulations don't allow that anymore. However, there are jurisdictions that offer financial advantages over others and Nevis is one of them. If you own a Nevis LLC or Nevis offshore company, you know what we're talking about. This island comes from a long tradition of asset protection and confidentiality and that doesn't just go away in a year or two. Luckily, Nevis is protective of the bank’s secrecy and preserves the information of their account holders to a very high degree. If there's a claimant against the trust it will be very hard for them to obtain bank statements.
Asset protection in Nevis: how to open a trust
Step one: ask for a free consultation with one of our Mundo experts. Our lawyers will be happy to discuss your particular requirements and figure out the best way to structure your trust.
Step 2: your Mundo representative will send you an invoice, a form and an AML questionnaire. The compliance process can be lengthy, but we help you streamline the process as much as possible.
Step 3: once all the forms are submitted and your due diligence process is approved, we can place your order. We receive the funds which are held in escrow until your order is 100% completed. Then, your trust registration documents will be sent to you by courier. From that moment on you will be in touch with your Mundo relationship manager who will be your contact person.
Step 4: We proceed to draft, revise, and sign the trust deed. If your package includes it, we ask for a legal opinion from an independent lawyer.
Step 5: We establish your private trust company in Nevis.
Frequently asked questions about registering a trust in Nevis
So far, we have cleared out that Nevis brings the best offshore asset protection that you can get. Now, you probably have many questions and the best way to address them all is through this FAQ section. We've created this section after long years of experience dealing with clients like yourself.
Who can be the trustee?
For an entity or a person to be a trustee in Nevis, they have to be a member of the Bar of Nevis, a Nevis business corporation or a Nevis trustee company duly licensed. Professional trustees are usually required when the number of beneficiaries is large or if the amount of assets is significant.
If your wealth is big enough, your asset base is complex or you have many beneficiaries, things can get complicated in the future. Hence, it's always safer to err on the side of caution and hire yourself a professional trustee service like the one we offer at Mundo.
Who can be a protector?
Nevis trust formation allows for the assignment of a protector who can be an accountant, a company, a lawyer or simply a friend. This person will have veto power over some decisions adding an additional layer of protection to the structure. His or her powers will be determined on the trust deed, but they can include a variety of responsibilities like changing beneficiaries, appointing or removing a trustee or changing the deed.
Does the name of the settlor have to appear on public records?
Not necessarily. The trust can be created without revealing the identity of the settlor. In other words, a trustee can declare a trust over the assets in which case the settlor’s name doesn't appear on the trust deed. He is also not required to sign it.
Can my trust have a bank account?
The trustee can have a bank account anywhere in the world and hold all kinds of assets on behalf of the trust.
Is my trust tax exempted?
Yes. If you establish an international trust or a qualified foreign trust, you won't be liable for taxes on income sourced in Nevis. Since the international trust is governed by NIETO, it's protected against foreign rulings. A qualified foreign trust, on the other hand, is under the legislation of another jurisdiction but it adopts NIETO too. If the trust established under NIETO receives capital gains from sources like forex, shares, property, precious metals, or eCommerce activities, then it pays no tax on those gains.
What are the accounting requirements?
The trust deeds are private and confidential, and the trust is obliged to keep accounting records. On the other hand, filing tax returns is not mandatory. Mundo always recommends having an experienced accountant so that the records can be properly registered and held on the island of Nevis. Mundo provides accounting services as part of our packages with a system that makes data management simple. Non-resident trusts don't require to file returns, but the information must be kept in the country in the registered office.
How long can my trust last?
You can set it for any period of your preference, or it can be established in perpetuity.
Who are the discretionary beneficiaries?
These are the individuals that will receive the benefits from the trust throughout its lifetime. This can be your children (even those yet to be born) or other people or companies of your choice.
What happens if I fall into bankruptcy, or I become incapacitated or die?
You can insert certain provisions so that the trust will fulfil your wishes in case of death, bankruptcy or incapacity. In this case, the settlor writes a letter of wishes so that the trustee knows how to act in such a scenario.
What happens if I'm being sued?
Since the assets under the trust will not be legally owned by you, these will be protected against creditors. However, the lawsuit must be brought one year after the establishment of the trust for the assets to be fully protected.
Does Mundo have professional trustees?
Yes. Our parent company was founded in Nevis in 1994 and since then it has been one of the leaders in trust registration and CBI programs in the Caribbean and Vanuatu.
Nevis trust cost
- Trust registration in Nevis.
- PTC (private trust company in Nevis) where you are the professional director.
- A Registered office.
Maintenance costs: Renewal fee (annual) $3,000
*We can add other services upon request with the corresponding fee
This package was specially created for those who have the skills and the time to act as professional trustees. This includes tasks like account opening and minutes. If you choose the bronze package, you’ll be responsible for all the updates regarding due diligence and for keeping financial records. Keep in mind that you’ll need to submit these to us on demand if we need them. Due to its characteristics, the bronze package is suitable for lawyers or people who have their own financial team in place.
- Trust Deed and registration.
- Gift statement or else a transfer placing the assets on the balance sheet.
- Formation of a PTC (Private Trust Company) led by our own director who will be in charge of acting as a trustee. This includes record keeping and memorandums.
- A legal opinion formed by a Nevis independent lawyer stating that the trust is properly set according to the legislation.
- Assistance from our trust experts who hold the proper law degrees and have extensive experience when it comes to trust drafting. They hold TEP qualifications. The assistance covered is 3 hours.
- Registered office.
Maintenance*: Renewal fee (yearly) $4,500
*It includes the yearly maintenance fee for both the trust and PTC.
This is the basic package for people who are not professional trustees. It includes all the documentation saving you plenty of time. If you don’t have the time to run the trust yourself, the Silver Package is just right for you. Also, this is the option if you are an individual or have a family with a simple structure.
This is the trust service that we provide to elite clients, and it includes everything in the Silver package plus the following:
- A qualified professional (a Swiss trustee, a CPA, or a banker) to act as the director or member of the board.
- Bank account and brokerage account.
- 20-hour assistance and support in legal drafting.
This is the ultimate package that provides asset protection for HNWI individuals. If you have a family office or a large asset base, this is the package you want. A Golden package will help you maintain an account for the beneficiaries and take care of sensitive functions like holding large portfolios or assets.
Finally, we provide an extra service (not included in the said fees) supplying a certified wealth advisor. This expert will be in charge of providing investment advice and reviewing your portfolio.
Maintenance*: Renewal fee (yearly) $6,000
*It includes the yearly maintenance fee for both the trust and PTC.
Note: We recommend complementing your trust with a holding company (Nevis LLC). Nevis LLC formation is optional and, if you order it with a trust, the fee is $1,000.
Why get asset protection in Nevis with Mundo?
Mundo is an international publication running in four different languages and backed up by one of the most reputable trustee companies in Nevis. Besides the described services, we can offer a set of complementary options for an extra cost. With Mundo, you have the opportunity to go beyond a trust, getting a reliable wealth manager to help you grow and protect your assets.
Our experts provide a wide array of brokerage services, management, investment advice, and Plan B strategies. In this case, we agree on the price on a case-by-case basis as the costs will depend on many factors. The nature of your assets, the number of assets, and the complexity of your structures and family are what determine the costs. All in all, this is more an investment than a cost as it protects all your other ventures. Think about your Nevis trust as the ultimate investment which protects all others. If you find this article interesting and you are ready to protect your assets in perpetuity, contact us now. Your Mundo expert will be happy to assist you.
Disclaimer: The information contained in this article is for informational purposes only and does not constitute financial advice or recommendations. Investing in financial products or cryptocurrencies involves risks, and you should be aware of the potential risks involved before investing. The content on this website is not intended to be a solicitation or offer to buy or sell any financial products or services. The information provided does not take into account your specific investment objectives, financial situation, or needs, and should not be relied upon as a substitute for professional financial advice. You should seek independent advice from a financial advisor or other professionals before making any investment decisions. Please be aware that the legal status of cryptocurrencies and other financial products may vary in different jurisdictions and may be subject to regulation. It is your responsibility to ensure compliance with any relevant laws and regulations governing the sale and marketing of financial products and services in your jurisdiction.
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