The British Virgin Islands, or BVI, is an island paradise located in the Caribbean, and although it is classed as a British Overseas Territory and the trust laws there are derived from English trust laws, it is not an EU territory and is not subject to EU laws.
As a result, BVI is able to offer a variety of favorable terms when it comes to the creation of offshore trusts, and the jurisdiction has a long-standing reputation as a respected and preferred locale in which to set up offshore trusts. This starts with their federal confidentiality legislation, which carries strict penalties for breaches of privacy. However, BVI also offers flexible options when it comes to structuring trusts.
You may set up discretionary trusts, fixed interest trusts, charitable trusts, or purpose trusts, for example. Thanks to the British Islands Special Trusts Act of 2003, you can also set up a unique trust known as a VISTA trust.
This is ideal for anyone interested in the prospect of creating a succession plan for their business, by which a trust fund includes controlling interest in the company. As you may know, trustees are duty-bound to act in the best interest of the trust and on behalf of beneficiaries, but this onus could directly conflict with decisions made by settlors in the course of operating a business.
With a VISTA trust, the trustee is not obligated to intervene in business decisions and bears no management responsibility for the company, allowing owners to conduct business unimpeded by the trustee.
BVI trusts of any type must be registered and a trust deed must be created. The cost is $5,500, with annual fees of $4,250, and your trust can be completed in just 5-7 business days.
Submitted by: Sam Hall of Harbor Financial Services