Legal Framework for International Exempt Trusts
These trusts are formed under the Nevis International Exempt Trust Ordinance of 1994, as amended to 2002. The Trust Ordinance includes special provisions to enhance the use of Nevis as a preferred jurisdiction for the establishment of Asset Protection Trusts.
Highlights of the Trust Ordinance include:
Exemption from all forms of Nevis taxation and exchange controls provided that transactions take place only with non-residents;
The trustee may be either a trust company licensed to do business in Nevis or a company incorporated under the Corporation Ordinance;
The proper law may be the law of Nevis or the law of another jurisdiction;
The rule against perpetuities does not apply;
Forced heirship rules are specifically excluded;
Spendthrift and charitable trusts are permitted;
There is no registration requirement other than for the Trust's name, name of Trustee and the registered office address;
Settlor and Beneficiary must be non-residents and may be the same person;
One trustee must be a Nevis offshore company or a trust licensed company;
Protectors are allowed for and may be the same person as the Settlor and Beneficiary of the Trust;
An IET is valid and enforceable notwithstanding that it may be invalid according to the law of the Settlor's domicile or residence or place of current incorporation;
The Trust is not considered fraudulent if settled up to 2 years after the date of the creditor's cause of action;
The creditor must prove the intent of the debtor to defraud with "clear and convincing" evidence;
The Statute of Queen Elizabeth is excluded.
Like all offshore finance businesses in the Federation of St Kitts and Nevis, trust management companies need authorisation under the Financial Services (Regulations) Order, 1997. Under the Order, applicants wishing to establish a trust business handling both unrestricted and restricted business must (at the time of writing) have net assets of 540,000 East Caribbean dollars ($200,000) or its equivalent in other currencies, reduced to 54,000 East Caribbean dollars ($20,000) for restricted business.
The trustee may be either a trust company licensed to do business in Nevis or a company incorporated under the Corporation Ordinance (ie an International Business Company). There is no registration requirement other than for the Trust's name, name of the Trustee and the registered office address.
A US$25,000 bond requirement prior to the commencement of an action or proceeding against trust property in the 1994 Act was increased to US$100,000 under the Nevis International Exempt Trust (Amendment) Ordinance 2009.
An International Exempt Trust (Nevis) pays an annual registration fee of US$220 to the government.
Nevis trusts are exempt from all forms of taxation and exchange controls provided that transactions take place only with non-residents.
Nevis Has No New Taxes Planned For 2014 Monday 23/12/2013The premier and minister of finance for Nevis, Vance Amory, presented a budget free of new taxes at a sitting of the Nevis Island Assembly on December 18, 2013.