Nevis Jurisdiction
FFT is the largest trust company domiciled in Nevis, West Indies. The progressive trust laws of Nevis provide formidable obstacles to potential creditors, making it the most favorable independent jurisdiction in the world for an Asset Protection Trust. According to Nevis law, Nevis courts do not recognize or enforce U.S. judgments or judicial orders. Prior to commencing litigation proceedings in Nevis, a plaintiff-creditor is required to post a sizable cash litigation bond and to retain local counsel recognized by the Nevis courts. Any fraudulent conveyance claim must be filed within one year from the cause of action, and in no case more than two years after the transfer of assets. Fraudulent conveyance claims must also be proven beyond a reasonable doubt, rather than by a mere preponderance of the evidence. An unsuccessful plaintiff is normally liable for all legal costs, including those of the defendant. The enormous cost of litigation alone is usually enough to discourage most creditors.
Nevisian trust ordinances provide the grantor/settlor with the ability to appoint a protector. The protector has the authority to oversee the trustee and may have the discretion to replace the trustee or move the trust to another jurisdiction. These options offer the grantor/settlor considerable assurance that the trustee will consider his/her request.
Nevis has no perpetuities period and follows rules that benefit multi-generation treatment, making Nevis an ideal jurisdiction in which to create an international trust as part of your estate plan. If your tax advisors recommend a charitable trust, Nevis trust laws make the country a favorable jurisdiction for such a trust.
The FFT Asset Protection Trust (APT) is inherently a more protective trust and can provide major advantages over a U.S. domestic trust. Unlike a U.S. domestic trust, an APT formed by FFT can maintain control of present and future ownership and provide estate tax and probate cost savings. Perhaps the most important difference between an FFT trust and a U.S. Domestic Asset Protection Trust is that Nevis law allows the grantor/settlor to be a discretionary beneficiary of the trust (self-settled trust) without losing the ability to protect the trust assets. Although a few U.S. states have recently amended their trust statutes to allow self-settled trusts, there is little or no case law to support the U.S. Domestic Asset Protection Trust.
The advantages of incorporating in Nevis are numerous:
- Nevis does not levy taxes on assets, income, dividends or other distributions derived outside the country; however, clients may be responsible for taxes in their home jurisdiction.
- Corporate documents are not a matter of public record. There are no filing requirements for corporate financial returns, annual reports, and no notification requirements for changes of shareholders, directors or officers.
- The corporation’s principal office, company records, and meetings may be held or maintained outside of Nevis.
About the Island of Nevis
Formerly a British colony, Nevis obtained its independence in 1983 and is part of the federation of St. Kitts and Nevis. This stable, democratic government is based on the British Parliamentary System, with a cabinet headed by a Premier as leader of the Majority Party in the House of Assembly. It is an active member of the Commonwealth of Nations and the United Nations. English is the official and commercial language. The unit of currency is the Eastern Caribbean (EC) dollar, which is fixed at EC $2.70 to U.S. $1.00. There are no currency exchange controls, and the U.S. dollar is readily accepted as a secondary currency.
Communications are state-of-the-art, with fiber optic digital systems and direct dialing to the U.S., Canada and Europe. Air service from North America is available from American Airlines, Air Canada, BWIA, and Delta, as well as regional carriers.