The Trustee (Amendment) Act, 2003
This Act was introduced with a view to making BVI trusts significantly more attractive in the commercial context, including a new section (which will only apply if there is a statement to this effect in the trust instrument) which enables trustees to create various forms of charges of trust assets in favour of creditors. The legislation made a substantial number of other amendments to the Trustee Act, including the following:
The Act repeals section 83 of the Trustee Act and replaces it with a new set of conflict of laws rules relating to trusts. The new section contains robust, comprehensive and carefully crafted provisions protecting BVI trusts (and dispositions to their trustees) against “forced heirship” claims, which also prevent foreign judgments based on such forced heirship claims from being recognised or enforced in the Territory.
The BVI’s purpose trusts legislation has been comprehensively overhauled in the light of amendments which have been made to other offshore jurisdictions’ legislation, various commentaries which have been written by experts and some issues which have arisen in practice since this legislation was originally introduced.
Section 92 of the Trustee Act, which deals with the payment of trust duty has been replaced by a comprehensive new section which makes it clear what documents are subject to trust duty and how this must be paid.
Trusts which are exclusively charitable are now exempted from trust duty; but the section included a modest increase in duty from $50 to $100.
The Act includes a number of further sections dealing with charities, variation of trusts, illusory appointments, the power to compromise claims, flee clauses and the jurisdiction of the BVI’s courts.
The Property (Miscellaneous Provisions) Act, 2003 abolishes the requirement that deeds executed by individuals need to be sealed.
British Virgin Islands News
BVI To Review Taxes And Fees Monday 15/3/2010British Virgin Islands Prime Minister, Ralph O’Neal has said that the territory
will run a budget surplus during 2010, although the government still intends to review indirect taxes and fees on financial services.