CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.

Offshore Trusts Report: Turks & Caicos Islands

The Voidable Dispositions Ordinance

In the absence of a term to the contrary Turks and Caicos Islands law provides that the law of any other jurisdiction with which the trust or any disposition made thereunder may otherwise be connected is to be excluded. The courts of the Turks and Caicos Islands consider they have jurisdiction over a trust in any one of the following circumstances: where the trustees reside on the Islands, where the trust property is situate on the Islands, where the trusts are administered from the Islands, and where the trust was set up under Turks and Caicos Islands law.

A "disposition" is the transfer of assets into a trust by a settlor. Creditors who have a claim against a settlor may wish to set aside the "disposition" and use the proceeds realised to satisfy their claim.

The provisions of the Voidable Dispositions Ordinance 1998 sharply circumscribe the circumstances in which a "disposition" can be set aside by a creditor, and so make the Turks and Caicos Islands that much more attractive a jurisdiction into which to settle a trust.


Generally speaking the Ordinance only applies to "dispositions" made after the Ordinance became law. "Dispositions" can be set aside by the Supreme Court on the application of a creditor in any of the following sets of circumstances:

  • if within 2 years of the "disposition" the settlor is deemed to have a contractual debt towards the creditor. If an application to the Supreme Court is not to be time barred it must be commenced by the creditor within 6 years of the "disposition" or within 6 years of the day the contractual debt arose, whichever is the later;

  • if at the time of the "disposition" the settlor had a contingent liability towards the creditor. Where the liability was contingent an application to set aside a "disposition" must be commenced within 6 years of the "disposition" if it is not to be time barred;

  • if within 2 years of the "disposition" the creditor had the right to bring a legal action against the settlor for an outstanding debt . If the application by the creditor to the Supreme Court to set aside the disposition is not to be time barred it must be commenced either within 6 years of the disposition or within 6 years of the legal action accruing, whichever is the later.
    In any application to set aside a "disposition" the burden of proof lies on the creditor to prove that the settlor wilfully intended to defeat the obligation owing to the creditor by making the "disposition".

   

The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

New Zealand

New Zealand: Legal Framework and Formation Rules and Fees
New Zealand: Review of the Law of Trusts
New Zealand: Taxation of Trusts

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees

 


Turks & Caicos News

Turks And Caicos Relaxes Immigration Rules /5/2010/18
The Turks and Caicos Islands government has announced that it has relaxed immigration rules on short-term visitors to the island.

Caribbean Explores Fiscal Cooperation /3/2010/9
Ahead of the World Bank meeting, to be held on March 11-12, where CARICOM Finance Ministers will meet to discuss challenges that the region faces, CARICOM Secretary General, Edwin Carrington said it was vital for Caribbean economies to increase economic cooperation and remove fiscal barriers, for the prosperity of the region going forward.

OECD Reports On Its Progress With International Tax Standards /1/2010/20
According to the Organization for Economic Cooperation and Development, the focus of the Global Forum on Transparency and Exchange of Information is now shifting – from commitments and agreements to achieving an effective implementation of the standards.

Turk And Caicos Islands Removed From 'Grey' List /12/2009/29
The Turks and Caicos Islands have been placed on the OECD ‘white list’ of compliant territories, having signed 12 agreements on tax information exchange, thereby substantially implementing the internationally agreed standard on transparency and information exchange.

Crown Dependencies Welcome Foot Report Findings /11/2009/2
The British Crown Dependencies have welcomed the findings of the UK government's review of the dependencies, published on October 29, which recognizes their economic benefit to the United Kingdom, and efforts to achieve compliance with international standards.

UK Signs TIEA With Turks And Caicos /7/2009/28
A Tax Information Exchange Arrangement between the United Kingdom and the Turks and Caicos Islands was signed in London on July 22, 2009 - the first of three such agreements signed by the Caribbean jurisdiction's government that day.

The Netherlands Signs TIEAs With Anguilla And Turks /7/2009/27
Dutch Secretary of State Jan Kees De Jager (pictured) has welcomed agreements for the exchange of tax information between the Netherlands two Caribbean territories, signed on July 22.

Ireland Signs TIEAs With Anguilla, Turk And Caicos Islands /7/2009/24
Ambassador of Ireland to the United Kingdom, Bobby McDonagh, signed Tax Information Exchange Agreements with Anguilla and the Turks and Caicos Islands on behalf of Ireland, in London on July 22, 2009.

E-Commerce Solutions Continue To Flourish In Caribbean /7/2009/23
First Atlantic Commerce, a leading international multi-currency payment and risk management solutions provider, and Scotiabank, an international bank based in Canada and the leading bank in the Caribbean, have joined together to offer 3-D Secure services to online merchants in seven countries across the English-speaking Caribbean.

World Bank Study Provides Overview Of Caribbean Global Trade Integration /4/2009/14
The acceleration of trade integration in the Caribbean is essential to boost the region’s growth, create jobs, and reduce poverty, says a new World Bank study. The report argues that despite their small size, economies in the Caribbean must strive to become more competitive to fully reap the benefits of global trade integration.