LLC + Trust in Nevis: How the Nevis Two-Tier Structure Works and How It Can Help You

Why a Nevis LLC complements a Nevis trust

Setting up a Nevis LLC in combination with a Nevis trust is a common mechanism chosen by families all over the world. This two-tier structure brings unique combinations, allowing settlors to simplify the succession process and make asset management easier. The LLC flexibility, combined with the trust’s protective structure, creates a solid solution for optimal estate planning.

LLC plus Nevis trust: advantages of the combination

• Unique flexibility thanks to the LLC
• Trust structure based on common law
• Protective legislation based on a solid framework (NIETO)
• Streamlined inheritance and succession processes
• Simplifies management of the family’s investments

Unveiling the layers: why the LLC

Regulated by the Nevis Limited Liability Company Ordinance, last amended in 2025, the Nevis LLC provides unique protection, separating personal and corporate liability for the members.

In simple terms, with a Nevis LLC, owners keep their personal assets safe.

The owner of the Nevis LLC is known as a member, which is the equivalent of an IBC shareholder; hence, from now on in this article, they will be referred to as such.

Unveiling the layers: the Nevis trust

A Nevis trust is a structure that can shelter any type of asset, from jewels to bank accounts and houses, and also a company like an LLC. This is where the combination starts to make sense. Nevis trusts have virtually no parallel in the world when it comes to asset protection, because they can't be intervened by foreign court rulings.

Therefore, claimants must initiate action within the jurisdiction of Nevis, for which they must pay a 100,000-dollar bond. Thanks to the country’s protective legal framework, based on the Nevis International Exempt Trust Ordinance, starting legal action requires a high sum of money that not everyone is willing to risk. This largely dissuades ill-intentioned players from going on the so-called fishing expeditions.

Where the two overlap and where they do not

While both have strong asset protection features, the Nevis trust and LLC should not be conflated, because they are, in essence, completely different. A trust is an agreement based on common law and consisting of one party ceding ownership to a second party for the benefit of a third party. It's an agreement, not an entity. On the other hand, the Nevis LLC is an entity with its specific characteristics. It has members instead of shareholders, and corporate liability is independent of personal liability.

Nevis trust + Nevis LLC: How to assemble the two-tier structure

Which one goes first? Order of formation and why sequence matters

The first thing to understand is that the LLC and the trust don't necessarily have to coexist under one structure. Creating an LLC is optional and convenient in some cases, yet not in all.

Planning ahead is vital for the combination to be optimal, and in this case, order matters. It's better to form the trust first and then register the LLC with the trustee as the sole member. This is the straightest path, as if you were to establish the LLC first, then you would have to transfer it to the trust. This saves you from one unnecessary step and additional fees.

The trust as sole member of the LLC

The trust thus becomes the sole owner (member) of the LLC. So, the settlor can appoint a manager who will control the investments and access other benefits, like simplifying the inheritance process.

Nevis LLC + Nevis trust: Who has control and what are the practical uses

What the manager can and cannot do

They can basically manage all the LLC's operations. They can decide whether to buy or sell property, keep the books, open and close accounts, hire counsels, accountants, or managers, and make investment decisions.

What they won't be able to do is treat the LLC assets as their own personal assets, withdraw them from the trust, or distribute them among beneficiaries.

What the settlor can and cannot do

They can choose the trustee, pick the jurisdiction, appoint the protector, draft the deed, and choose the assets. However, the trust principles apply, under which they lose control of the assets. Their power of decision is limited to what’s written in the trust deed. That means they can't change beneficiaries or how assets are distributed. Also, they cannot revoke the trust or order the trustee to act in any particular direction.

Costs and steps to form an LLC under a Nevis trust

Formation cost across both layers

Trusts are incredibly complex, and the legal fees can change considerably depending on the asset base, the complexity of the family estate, and the beneficiaries. At Mundo, we have created three sets of packages that adapt to different needs.

The most complete package (Gold) has the most comprehensive list of services, including registration of every structure (including the LLC), drafting of the deed, and an opinion from a local trust expert. The bronze package is the most affordable one, but it's only recommended for experienced players who are willing to take on greater responsibility. With the silver and gold packages, you'll be supported through all the main procedures and elements of the structure, relying on Mundo's trusted professionals.

Mundo's trust packages

The table above shows how the golden package includes all the services, thus being the most comprehensive of the three. As clients escalate to silver and gold, they can delegate the drafting of the deed to Mundo, have a consultation with a lawyer, and register the LLC. Finally, with the gold package, the client also obtains a legal opinion from an independent lawyer.

Is the LLC + Trust combination always necessary? Cases when one layer is enough

When to establish just an LLC

The LLC is valuable as an entity in and of itself. Its main advantage is that it can be used for all kinds of businesses, like manufacturing, international financing arrangements, professional practices, or even real estate holdings. Moreover, it's quite flexible, with simple requirements like maintaining a registered agent in Nevis and the absence of initial capital.

When to establish just a trust

The trust as a stand-alone tool is ideal for families who want to hold valuables like real estate, works of art, jewels, precious metals, or bank accounts, without investing, reinvesting, or withdrawing investments. It’s also suitable for families that prefer to fully delegate to the trustee, or who have found a trustee they trust completely to handle investments.

Situations where neither is the right tool

Businesses that need to bring on multiple passive investors and the flexibility to transfer ownership: for them, the LLC would probably complicate matters. At the same time, there are actions to take for asset protection purposes which are far simpler than a trust, like prenups, retitling between spouses, or professional liability insurance.

Worst-case scenarios: where the Nevis trust can fail

Structures established after a claim has arisen

To accurately understand this point, we need to understand the essence of the trust, which is to protect assets, not to avoid lawsuits. If somebody decides to separate ownership from themselves and the assets, this automatically protects them against potential claims; the keyword being “potential”. As a matter of fact, a common reason for dissolving a trust is if the opposing lawyers' camp proves that it was created as a fraudulent transfer, that is, with the intention of escaping creditors.

Assets never actually transferred

For the same reason as above, the transfer of assets should not be skipped. This is not totally unheard of for English-speaking families, who are familiar with common law. Since the trust is based on Anglo-Saxon law, it is an agreement, not a founded entity (unlike the foundation, which is rooted in civil law). Therefore, if the assets aren't actually transferred, the trust won't exist, and wealth will be exposed.

Over-controlling is highly inadvisable

The Mundo editorial team likes to cite our trust expert's words: “don't establish a trust if you don't trust”. Mechanisms to remain in control of the assets can be detrimental, as it can be proven in court that the trust is a mechanism to avoid liability rather than to protect assets.

The protective capabilities come with losing control, and the more control you maintain, the higher the risk of the trust being rendered a sham trust in court. Another important aspect that is usually overlooked: if properly drafted, a trust can be unbeatable; however, people aren't. Even if creditors cannot touch the assets, they can charge the settlor for trying to avoid responsibilities, and they can go to jail.

How can Mundo help you establish trusts?

The Mundo team is composed of trusted professionals in several fields, like company formation, investment migration, banking, and real estate. When it comes to trusts, our experts have extensive experience in the jurisdiction of Nevis and have helped many protect their assets under them.

Our experts can assist you in forming your trust alone, or your trust plus an LLC for the perfect combination of protection and manageability. Contact us today and let's discuss your case.