Establish a discretionary or set-up a vista trust in BVI: the British Virgin Islands are a popular location for trusts start-up, not only because of the off-shore jurisdiction's reputation for professionalism, but also because the principles of BVI trust law are derived from English law. Many principles of the UK Recognition of Trusts Act 1987 are extended to BVI, so it falls under the jurisdiction of the Hague Convention on the Law Applicable to Trusts. With us, you can setting up a vista trust, or start-up a discretionary trusts in BVI, Coddan can also help with a new company formation in BVI.
ANNUAL FEES FROM £2,200
The first option of the vista trust start-up in BVI is the fastest process with online BVI vista trust set-up, and printed documents as well.
The following benefits are included into this vista trust setting-up in BVI package:
ANNUAL FEES FROM £2,800
This vista trust start-up in BVI package is especially for clients, who are requiring setting-up a vista trust with a registered address, local agent & a nominee trustee; bank account upon request.
This BVI trust start-up offer includes everything in the first option, together with the advantages of:
ANNUAL FEES FROM £2,800
This is one of the most popular vista trust start-up in BVI packages with offshore bank account, as an additional option to the nominee trustee & registered office address in BVI.
This BVI vista trust set-up offer includes the following:
ANNUAL FEES FROM £2,800
This is our most comprehensive vista trust set-up in BVI package with all documents verified by solicitor or notary public & certified by the Apostilled stamp or Apostille seal affixed.
This BVI vista trust start-up offer includes everything in the third option, plus:
ANNUAL FEES FROM £3,000
The first option of discretionary trust start-up in BVI is the fastest process with online BVI discretionary trust set-up, and printed documents as well.
The following benefits are included into this discretionary trust setting-up in BVI package:
ANNUAL FEES FROM £3,600
This discretionary trust set-up in BVI is especially for clients, who are requiring setting-up a BVI discretionary trust with a registered address, local agent & nominee trustee; bank account upon request.
This BVI discretionary trust set-up offer includes everything in the first option, together with the advantages of:
ANNUAL FEES FROM £3,600
This is one of the most popular discretionary trust setting-up in BVI packages with bank account, as an additional option to the nominee trustee & registered office address in BVI.
This BVI discretionary trust start-up offer includes the following:
ANNUAL FEES FROM £3,600
This is our most comprehensive discretionary trust set-up in BVI package with all documents verified by solicitor or notary public & certified by the Apostille stamp/seal affixed.
This BVI discretionary trust start-up offer includes everything in the third option, plus:
What is a BVI trust? A BVI trust, which can last for up to 360 years, enables the settlor who establishes the trust to transfer ownership of an asset to a trustee. It is held by the trustee for the beneficiaries, allowing the trustee to grant fixed interests on the beneficiaries, or grant discretionary benefits among beneficiaries (for example, the settlor's descendants) when appropriate.
What is a discretionary trust in BVI? A BVI discretionary trust registration is the more flexible option, since the beneficiaries do not have defined beneficial interests. This is attractive for asset protection and tax reasons, ensuring greater flexibility if the discretionary beneficiaries' circumstances change in future.
The trustee's discretion can be influenced periodically by the settlor through a Letter of Wishes. To protect the settlor's interests, the trust deed can appoint a protector, who has the power to dismiss the trustee and appoint a new one if necessary. With a discretionary trust, the settlor and beneficiaries retain indirect power if they are dissatisfied with the trustee's discretion.
What is a vista trust in the BVI? Vista is an innovative legislative measure in establishing a trust system in the BVI designed specifically for holding BVI company shares. The corporate owner of a business can set up a trust comprised of BVI business company shares under which they can be retained in trust indefinitely. The trustee’s monitoring and management responsibilities under general law can be removed and instead be carried out by the company directors without interference from the trustee.
The trustee has a statutory duty to retain the shares while preserving or enhancing the value of the trust, but with only a limited power to dispose of the shares according to the terms of the trust deed. At Coddan, we are experts in forming discretionary or vista trusts in BVI and can guide you through every part of the process. Get in touch today to find out how we can help you.
Our expert team at Coddan can help you to create your trust in BVI, making sure that all the proper documents are provided and the correct procedure is followed. Under current law, to form a trust in BVI, you need to produce a copy of the trust instrument, and pay a registration fee.
Only then can you enjoy the benefits of setting-up a trust in BVI, which include better protection of your assets, managing your estate and taxes more efficiently, and anonymity. Our experienced consultants have in-depth knowledge of the BVI jurisdiction and can take care of all the necessary paperwork to register the trust on your behalf. Call us today for more information.
The British Virgin Islands (BVI) is an extremely attraction jurisdiction for the formation of trusts. Trusts in the BVI can last for up to 360 years and allow the settlor to transfer ownership of assets in the trust to a trustee. The assets are held by the trustee for the beneficiaries, enabling the trustee to grant discretionary benefits or fixed interests to beneficiaries.
The differences between a discretionary trust and VISTA trust: a discretionary trust is a flexible option, as there are no defined beneficial interests for the beneficiaries. This ensures increased flexibility if the circumstances of the discretionary beneficiaries should change in the future. This is a popular choice for people who wish to pass on inheritance to family while avoiding inheritance tax.
A VISTA trust, on the other hand, is designed especially for company shares. This kind of trust permits the trustee to keep company shares indefinitely without being involved in the running of a company. VISTA trusts are particularly useful for passing on the ownership of a company within a family.
Setting up a trust in the BVI: there are not many requirements when it comes to setting up a discretionary or VISTA trust in the BVI. When setting up a trust, a trust duty of US$100 needs to be paid. Trusts in this jurisdiction don't need to be registered and trustees don't need to file reports. In addition, BVI trusts are exempt from all taxes - as long as the trust doesn't own land or conduct business in the BVI, and none of the beneficiaries live there.
There are several reasons why you might be contemplating establishing a discretionary or VISTA trust in the British Virgin Islands, a Caribbean territory commonly known by its abbreviated initials.
BVI discretionary trusts - the most obvious advantage of setting up a discretionary trust in BVI is confidentiality. In accordance with the Registration and Records Act, you don’t have to register your trust and there's no legal requirement for annual returns or accounting reports to be filed.
A discretionary trust in BVI can also help you to protect your assets; in addition to a lack of formal accountability, trusts are not subject to taxes, provided none of the trust’s beneficiaries live in the territory and business is not being conducted in BVI.
Trusts can be established for up to a century, so long-term protection of your assets can be assured not only for your children, but your grandchildren and great-grandchildren, too.
To enquire about a discretionary trust in BVI today, get in touch with Coddan on +44 (0) 207.935.5171.
VISTA trusts - VISTA stands for Virgin Islands Special Trusts Act, which, when passed in to law in 2003, created a form of special trust in BVI. A VISTA trust can only be used for holding shares in a BVI company, but its advantages are manifold.
First of all, a VISTA trust allows the trustee holding the shares in the fund to forego management of the company involved. The trustee also has limited powers, as decided by the settlor, which can extend to appointing and removing company directors. Another benefit of establishing a VISTA is its longevity compared to many other beneficiary trusts. While many overseas trusts expire after 100 years, VISTA trusts can be set up for up to 360 years.
Finally, VISTA trusts are flexible; shares from other existing BVI trusts, including discretionary trusts, can be added as and when.
The British Virgin Islands is one of the world's most popular options for clients who want to establish a discretionary trust. Indeed, the BVI allows a settlor to set up a special kind of discretionary trust, known as a VISTA trust, which releases trustees from the day-to-day requirements of managing the accounts of the BVI company holding the trust funds; such responsibilities are ceded to the directors of the company.
There are few requirements in regard to establishing a discretionary trust in the BVI. Trusts don't legally have to be registered, and none of the bodies involved in the trust are required to reside in the BVI. Trusts are tax exempt and there are no reporting requirements, making the BVI a lucrative and confidential option for settlors and beneficiaries around the globe.
Coddan are experienced in discretionary and VISTA trust start-ups in the BVI and we can give you some expert help and guidance if you’re planning to establish such a fund. As well as the BVI, Coddan also helps with setting up trusts in many other jurisdictions, including: -
Belize - after changes to its law, all offshore trusts in Belize must be registered with the relevant authorities. In comparison to trust formation in the UK though, little information is needed - you won’t even have to give the Registry a copy of the deed.
Gibraltar - public registration of trusts and their trustees is not obligatory. Assets in most trust funds are completely confidential and beneficiaries benefit from funds being exempt from tax.
Hong Kong - as with many of these jurisdictions, trusts are tax-free and do not need to be registered. Despite this, trust funds set up in the former British colony are privy to double taxation agreements.
Seychelles - possibly the most lenient jurisdiction of all, almost anything goes, as long as the settlor does not reside in the Seychelles and the country's property is not subject to what is included in the trust. To establish a trust in Seychelles, a minimum of one trustee must live in the Indian Ocean territory, but you can solicit the services of an Seychelles international business company, such as Coddan, to do this for you.
The 'prudent man of business rule' is one that exists under traditional English trust laws, outlining that the purpose of a trust is the preservation of the trust investments' value. Therefore, trusts are typically considered unsuitable for holding shares in a company, or assets that settlors want trustees to retain.
Also, the natural call for involvement in a company's business that falls upon a trustee, including monitoring it, conflicts with the settlor's business interests. The above rule suggests that in order to reduce financial risk as far as possible, a business or its assets may need to be sold.
VISTA trusts, a type of discretionary trust, were established in 2003 under the Virgin Islands Special Trusts Act. They allow business management responsibilities to lie with the settlor and their directors as opposed to the trustees, thereby protecting the company and its assets from being sold to avoid financial risk.
To register a VISTA trust, the trustee company need to have a licence to carry out business relating to trusts, under the Banks and Trust Companies Act of 1990. They must be the sole trustee, and have to declare that any successor must also be the sole trustee. An existing trust can't be made into a VISTA trust, so it must be a new establishment. Also, a written testamentary is required to register a VISTA trust, featuring a declaration that the shares apply exclusively to a BVI corporation.
Unless specified otherwise by the settlor, the trustee remains separate from the business and will not monitor it. As such, the trustee needs to recognise that the 'prudent man of business rule' does not apply in this instance.
Instead, the director appointed by the settlor authorises the sale of any shares, which will then be the trustee's responsibility. The trustee must also acknowledge that it is the settlor who appoints and removes directors, and that their ultimate purpose is to ensure the retention of the shares.
A trustee can be a single person, a company or even a legal entity who is appointed by a settlor to oversee the protection of their trust assets. Trustees are given strict instructions relating to beneficiaries of the trust, which they must then follow with the best interests of the beneficiaries always at the forefront of their decision making.
When appointing a trustee, a settlor is handing over the legal rights of their trust to the trustees. Therefore, the trustees have complete control over the assets they have been entrusted with.
However, they are legally bound to ensure, to the best of their ability, that the wishes of the settlor are carried out so that the beneficiaries benefit from the trust assets in the intended fashion. Therefore, trustees are unable, by law, to use the trust's assets for their own interests. Sometimes, depending on circumstance, settlors have some rights in appointing and removing trustees. Removing a trustee means they are no longer responsible for the settlor's assets.
The rules and regulations that govern trustees in the British Virgin Islands are outlined in the Trustee Act. The initial Act was formed using the English Trustee Act of 1925 and the Variation of Trusts Act of 1958 as a basis. However, these have subsequently been amended to allow specific rules to apply to BVI trustee legislation, by the Trustee (Amendment) Acts of 1993, 2003 and 2013.
It was these amendments that enabled the special formation of VISTA trusts in the BVI, allowing a business to retain its shares and assets without having to sell them in the instance of financial risk.
In these cases, the typical duties a trustee would have do not apply. The trustee is refrained from appointing or removing directors, and is not permitted to get involved in the affairs of a business unless a settlor allows. They are also not able to monitor the business. This type of trust can only have one trustee, and they have to be a BVI company.
Once a BVI discretionary trust or vista trust has been registered and begins to operate, many owners find the burden of administrative requirements and reporting obligations to be a troublesome call on their time. Although the paperwork needed to maintain an off-shore trust is frequently less than that needed for the UK equivalent, there are still a number of different reports and summaries that need to be produced and disseminated. If you require an experienced, competent agency to undertake the work on your behalf, Coddan is an ideal choice.
Specialists in off-shore trust administration: we already provide comprehensive and effective administrative services for a large number of off-shore enterprises. Our discreet, highly professional team can provide everything from an answering and reception service through to skilled, accurate book keeping and accountancy expertise. If you're not sure exactly what's needed to keep your trust running smoothly, we're always happy to advise.
Confidential and anonymous - many trust owners prefer to conduct their business affairs discreetly, in order to avoid unnecessary publicity. Coddan can act as an initial point of enquiry for any off-shore organisation, providing contact details that can be used on official documents as required. We are able to offer a UK postal address as well as give interested parties copies of annual reports, financial statements and other helpful information.
We prepare your annual reporting documents - most BVI discretionary and vista trusts will need to produce annual progress reports and financial statements. We can complete these to an exceptionally high standard on your behalf, producing high-calibre documentation that showcases your Trust's activities wonderfully well. In addition to meeting your annual reporting requirements, Coddan can also provide on-going financial and technical support, maximising the chances of enjoying sustainable business success.
The British Virgin Islands is one of the most popular locations to set up an offshore trust as it combines all of the advantages of a tax haven with the security of being a British sovereign territory with a stable economic and political climate. Of course, there are still rules to follow if you want to set up a discretionary or VISTA trust on the islands, but they are far less restrictive than doing business in the UK or many other territories.
The VISTA trust was created in 2003 and enables the trustee to retain company shares indefinitely without any intervention in the running of a company by the trustee. This makes it particularly useful for passing on the ownership of a company down the familial line. A discretionary trust works in much the same way as a traditional trust in the UK and is designed to hold assets, shares and other property and is a popular method of avoiding inheritance tax or simply protecting assets.
The laws surrounding the Trustee Amendment Act 1993 are based largely on the UK’s own regulations. There are a number of advantages, though.
BVI trusts do not have to register and trustees simply do not have to file annual returns. BVI trusts are also exempt from all taxes, provided none of the beneficiaries actually live in the BVI and the trust does not conduct business or own land there. Aside from this, after a trust duty of US$100 is paid, there really is not much else to consider.
The BVI trust laws were amended in 2007 to make it even easier for foreign investors to set them up and now companies can apply for a fast-track exemption from any licensing requirements, which means a private trust is almost anonymous.