Nevis

Nevis, part of the Federation of Saint Kitts and Nevis in the Caribbean, has established itself as a reputable jurisdiction for the formation of international trusts. The Nevis International Exempt Trust Ordinance, 2016 (NIETO) provides a legal framework that emphasizes asset protection, confidentiality, and operational flexibility. This article explores the core features of Nevis international trusts, focusing on their legal status, regulatory requirements, trustee arrangements, tax treatment, and protection mechanisms.

According to the 2016 Ordinance, an “international trust” must meet specific statutory requirements:

1. Trustee Requirements: At least one trustee must be either:

• A corporation incorporated under the Nevis Business Corporation Ordinance;
• A limited liability company formed under the Nevis Limited Liability Company Ordinance;
• A licensed trust company in Nevis;
• An attorney-at-law or law firm licensed by the Nevis Island Administration to act as a registered agent; or
• A multiform foundation registered under the Nevis Multiform Foundations Ordinance.

2. Residency Restrictions: The settlor (creator of the trust) and all beneficiaries must be non-residents of Saint Kitts and Nevis.

3. Asset Location: The trust must not hold any real estate located within Saint Kitts and Nevis.

Meeting these criteria qualifies the arrangement as an international trust under Nevis law and entitles it to the statutory protections and exemptions afforded by the Ordinance.

To ensure the trust falls under Nevis jurisdiction, Nevis law must be designated as the governing law in the trust instrument. Additionally, the presence of at least one Nevis-based trustee is mandatory.

This Nevis-resident trustee may be:

• A licensed professional trustee, such as a trust company or registered agent;
• A private trust company (PTC) established for the sole purpose of acting as trustee. A PTC may be formed as a Nevis business corporation, LLC, or multiform foundation.

In cases where a foreign individual or entity is appointed as trustee, the law allows such arrangements only if a co-trustee meets the Nevis-based requirement. This structure provides flexibility in international trust administration while preserving legal jurisdiction in Nevis.

The timeline for establishing a Nevis international trust typically spans approximately two weeks, assuming minimal revisions to the trust deed. The process may proceed in parallel with the incorporation of a PTC, which usually requires about one week.

Upon execution of the trust deed, a formal registration letter is filed with the Registrar of International Trusts. This filing is administrative in nature and limited in scope. The registration details include:

• The trust’s name;
• Date of creation;
• Name of the trustee;
• Registered office address (corresponding to the Nevis-based trustee’s office);
• Legal Opinion that the trust conforms to Nevis law.

Following submission, the Registrar issues a Certificate of Registration, serving as confirmation that the trust is legally recognized under Nevis law. Notably, the content of the trust deed and the identities of the settlor and beneficiaries remain confidential and are not disclosed in the public domain.

Nevis law provides one of the most comprehensive asset protection regimes globally. Key protections include:

• Strict Standards for Fraudulent Transfers: A transfer of assets into a Nevis trust can only be voided on the basis of proven actual fraud. The legal burden lies entirely on the creditor.
• High Evidentiary Threshold: In Nevis, creditors must prove fraudulent intent beyond a reasonable doubt—a threshold comparable to criminal cases, requiring a probability exceeding 90%.
• Procedural Barriers for Foreign Creditors: Foreign judgments are not enforceable in Nevis. Creditors must initiate a fresh legal action in Nevis, engage locally licensed counsel, and post a security bond before proceeding with litigation.
• Time Limits for Challenges: A strict statute of limitations applies. Generally, legal challenges to asset transfers must be filed within two years of the transfer date.
• Spendthrift Provisions: These clauses can be included in the trust deed to prevent creditors from accessing a beneficiary’s trust assets, even in cases where the beneficiary is indebted.

These features make Nevis trusts an effective legal vehicle for asset protection and wealth preservation.

Nevis trust law emphasizes confidentiality. The identities of the settlor, beneficiaries, and other parties are not publicly recorded. Further, the rights of beneficiaries can be tailored in the trust instrument. In certain structures, such as blind trusts, beneficiaries may be excluded from accessing trust information or from participating in trust management, if so stipulated in the deed.

This framework provides both privacy and discretion, which may be essential for sensitive financial and estate planning arrangements.

From a tax perspective, Nevis international trusts benefit from favorable treatment:

• Trust-Level Exemptions: Trusts are exempt from all local taxes in Nevis, provided they do not hold assets located within the jurisdiction.
• Private Trust Companies: PTCs are also tax-exempt as long as they are not managed or controlled from within Nevis and do not conduct business within the Federation. If a PTC elects to become a tax resident, taxation typically applies only to trustee fees, not to the trust corpus or underlying assets.

This tax-neutral environment contributes to the appeal of Nevis as a jurisdiction for cross-border estate planning and investment structuring.

Nevis international trusts serve a broad range of purposes, including:

• Long-term estate planning;
• Multigenerational wealth transfers;
• Asset protection against future legal claims;
• Structuring philanthropic or charitable gifts;
• Managing and safeguarding family-owned businesses.

The Nevis International Exempt Trust Ordinance, 2016 provides a modern and protective legal structure for international trusts. Its requirements for Nevis-based trustees, high evidentiary standards for creditor claims, and strong confidentiality laws make it a strategic option for individuals seeking to manage and protect wealth across generations. While Nevis offers an efficient and secure legal environment, establishing a trust in this jurisdiction must be approached with thorough due diligence, compliance awareness, and professional guidance.