Asset protection is becoming an increasingly urgent task nowadays, and few jurisdictions can handle it better than Nevis. More specifically, the Nevis Trust for asset protection is one of the best options for this purpose, and below you will find 16 reasons why.
Pay attention to the jurisdiction of Nevis where you can incorporate an LLC and use it as an ordinary trading company and as a good asset protection instrument comparable to trusts.
1. The Trust Settlor Benefits from Strong International Asset Protection
Putting assets into a Nevis trust is similar to locking them in a legal strongbox. The Trustee must be a Nevis entity (either a local trust company, law firm or Private Trust Company) although co-trustees may be resident anywhere in the world. The Settlor may be a beneficiary of the trust.
2. Data Privacy
The information on the trust remains as confidential as possible. If the trust is registered in Nevis lawfully and without error, the data cannot be disclosed. Plus, the trust has no shareholders.
There is no requirement for ownership records in the corporate registry, so it is practically impossible to prove who owns the property and how it was acquired. Financial information on trust operations and assets can be kept private because there is no legal provision for its disclosure.
3. Unlimited Validity Period
In most jurisdictions, a trust has a limited lifespan, while in Nevis it can exist in perpetuity for all intents and purposes. Even the heirs of creditors will not be able to break through to your assets!
4. No Decision by Foreign Courts can be Adopted in Nevis
Your assets in Nevis cannot be seized to satisfy the creditors by the decision of foreign courts (the country is a rare exception in this regard!). You will have to go through the local courts facing a tough road in terms of costs and complexity, so most creditors decide not to.
Another good feature of Nevis law is that the defendant’s assets cannot be temporarily frozen while the proceedings are in progress (freezing orders are expressly forbidden by Nevis laws). Thus, you will always have your trust assets at hand if you ever need to mount a legal defense.
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5. Monetary Obligations
An advance payment (bond) must be made before the case can proceed. The amount mandated by the court is on average $100,000, but a decision can be made on the sum above or below this threshold.
Only after payment can the creditor (or another opponent) directly apply and start the proceedings.
If the creditor loses the legal action, he will have to cover all the legal and court expenses incurred by the trust (and the bond will not be refunded, either!), which scares off many of them at the start.
6. Burden of Proof Lies on the Creditor
If the creditor decides that you owe him money, he must provide proof of that. In other words, you don’t need to defend yourself, but rather he needs to attack. This is the presumption of innocence in the literal sense that you take full advantage of.
7. Strong Evidence Only
The creditor must provide irrefutable evidence for the court to accept the creditor’s side. This is the highest level of evidence applicable in the common-law system which is the standard for US criminal law only.
The standard of proof in Nevis is “beyond a reasonable doubt”, which is much stronger than the “preponderance of evidence” adopted in the US. In simple terms, this makes it extremely hard for your opponent to collect the evidence which would impress a Nevisian court.
If the opponent wants to prove, for example, that the trust was established to hide the funds from the creditor, and the settlor specified a different objective in registration documents (such as international diversification or estate planning), the opponent will fail.
8. Lawyer’s Fee
At the start of the case, additional costs involve payment for the lawyer’s services. A full fee is required as a contingent fee is not accepted in Nevis. And as you understand, cases in Nevis related to assets protection are not simple, which means that a large amount may be charged to handle them.
9. Local Lawyer
Another feature of the Nevis court system is that you can only hire a local lawyer to conduct the case. Not only will it require a person with experience in a particular situation but it should also be taken into account that the best specialists in assets protection and trust legislation work for local banks and trust companies and are highly likely to refuse due to conflict of interests.
10. Time Limitations
The statute of limitations (on fraudulent conveyance) is only 2 years, or 1 year in some cases. The Trust will not be considered fraudulent if:
- more than 2 years elapsed after the cause of action
- the creditor commenced the action before the 2-year period expired but failed to initiate the necessary actions before the expiry of 1 year after the trust foundation
If the specified time periods are over, a Nevisian court will not accept the case or consider the legal nature of assets transfer into the trust. This means that all you need is to set up a trust and invest your assets in it as soon as possible, which will start the 2-year clock ticking!
11. Personal information protection
According to information available to us, no private creditor has been able to penetrate the personal data protection system in Nevis. This means a lot in times of total transparency.
12. No Taxes
Nevis is an offshore jurisdiction that does not collect taxes (from trusts, either). This is an excellent opportunity to accumulate assets with minimal costs and maximum protection.
You will not find any inheritance, estate or gift taxes here. As long as trust operations are carried out by non-residents, you don’t have to pay annual income, capital gains, withholding, local or stamp taxes. And no VAT, of course.
All you do is to get clear on taxes in your home country.
13. Suitable for Structuring an Inheritance
A trust in Nevis is used to transfer property by inheritance as you wish, not according to the law of your country of residence or heirs. The possibility of forced heirship is virtually excluded.
14. Language and Time Zone
The official language in Nevis, a former British colony, is English. This is the language of business operations and documents. So, if you are a native English speaker or have all of your documents in English, you won’t need a translation.
The time zone in Nevis is identical to Eastern Standard Time in the US, which may be convenient for some of you when you need to contact a trustee or a local agent.
15. Stable political situation
The stability of the region is assessed as excellent by credit-rating agencies as the economic, political and financial processes in Nevis are moderate and balanced. The political parties are predominantly centrist, and there are minor ideological differences between them. Nevis is a real haven of peace and stability in the changing world.
16. Good Statistics in Terms of Assets Protection
Local lawyers say that no private creditor has ever managed to win the case when it comes to a Nevis-established trust, so it is definitely one of the safest jurisdictions to choose.
How to Set Up an Offshore Trust in Nevis?
All you need to create a trust that protects assets is:
- Main document: a Trust Deed that forms the objective, structure, and features of the trust. The document is private, and no disclosure to the state is required.
- To choose the appropriate type of trust: asset protection, discretionary, spendthrift, charitable or non-charitable one.
- At least one trustee must be a licensed trust company or a Nevis BC (which we can register for you remotely).
- You need to appoint a Protector – and this may be the settlor, beneficiary or trustee.
How much does it cost to register a trust in Nevis?
See the article about the Nevis Trust to find out more about trust registration and costs involved.
In total, the amount starts from USD 9,400 and includes the trust registration plus execution of all necessary documents. The value of the assets in the trust is at your discretion. Assets can include securities, real estate, and others.
We can provide the services of trustee, protector, company registration and account opening – depending on your needs and wishes.
If you want to register a company in Nevis, the amount will increase. At the same time, we recommend studying Nevis’ offshore companies and using them not only as trust managers but also as an element of protecting assets and conducting business. The flexibility and convenience of companies in Nevis are particularly evident in international business.
Find out more and make an appointment by contacting us at info@offshore-pro.info
