Why are trusts used?
In this section, we consider what constitutes a trust to Nevis, with special attention paid to the creation of a trust. The advantages and purpose of trusts are described in detail, it is explained why the jurisdiction of Nevis is a great place for potential offshore founders.
Founders need to understand the main difference between a non-offshore and offshore trust, namely: in an offshore trust, assets are stored in another country, and the trust is created under the laws of the offshore jurisdiction. Continue reading at https://offshorecitizen.net/ to find out more.
Why create an offshore trust in Nevis?
Nevis has become a favorite place where you can protect your personal assets offshore and plan taxation. It operates a modern and stable government, and there are progressive laws on international trusts that ensure Nevis has a prominent place in the world in creating trusts.
A stable and not afraid of change government Nevis attracts founders to choose this particular jurisdiction to invest their personal fortune. Nevis has a 1994 Law on Concessions for International Trusts, highly prized throughout the world. The focus of the law is on improving and expanding the provisions on the protection of assets of offshore founders.
In this regard, an attractive feature of trusts is that potential heirs cannot file claims against the trust and the assets of the trust cannot be seized.
Trusts on Nevis also avoid the right to an obligatory share in the hereditary mass, which can act in the jurisdiction of the founder, which allows the latter to freely dispose of whom and in what amount to leave their assets. Nevis Trusts are an excellent means of protecting assets against third-party claims and lenders. To file a lawsuit against a trust here, the lender is obliged to prove the intent of the fraud before any action is taken against the assets of the trust. Finally, Nevis trusts provide strict anonymity for the owner, trustee, beneficiary, and trust management.
What is a trust on Nevis?
To establish trust in Nevis, the following requirements must be met: the founder of the trust property must transfer its assets / personal fortune to the trust. The trustee is the appointed person responsible for managing the trust and fulfilling the conditions of the declaration of trust in the interests of the beneficiaries (a person or group of persons who directly benefit from the trust). The trustee must be of legal age, in his right mind and conscientiously execute the declaration of trust. The guarantor controls the trust’s activities and ensures that the trust declaration (or trust agreement) is in conformity, and also ensures that the trust functions in a satisfactory manner.
Assigning Nevis Trusts
– Asset Protection
– inheritance planning
– Benefits for children
– Benefits for employees
– Charity and social assistance
Nevis most commonly used trusts
– Guard Trusts – provide for the possibility of removing or adding proxies
– Charitable trusts – should benefit the public
– Target trusts – can be created subject to the rules of morality, legality, and legality and not violate the law.
Benefits of Nevis Offshore Trusts
There are a number of reasons for creating an offshore trust in Nevis. Some of them are presented below:
– Full tax exemption
– Lack of currency regulation
– The rule of compulsory share in the hereditary mass does not apply
– Strict privacy laws providing a high degree of protection and privacy
– Nevis does not participate in an agreement on international tax treaties with the United States, unlike many neighboring jurisdictions
– No requirement for financial or annual reports
– Protection of the desire of the testator from the right to an obligatory share in the hereditary mass
– Effective tax planning
– High asset protection
– The possibility of obtaining a founder of immunity from legislation in his country
– Higher return on invested funds
– Exemption from all income taxes and stamp duty
– Lack of currency regulation
– The stable and flexible infrastructure of the economy
Creating an offshore fund in Nevis
What is the foundation on Nevis?
A foundation in Nevis requires, for its creation, the existence of a founding founder, an individual / organization, a company, a guarantor providing management of the fund, as is done in trusts, a beneficiary, which, like in trusts, is a person or group that benefits from the fund and, finally, board members.
The main feature of the foundation in Nevis is that after its creation, the foundation acquires the properties of a legal entity and becomes the owner of the property of the foundation. Consequently, the fund does not belong to anyone specifically and is usually created in the interests of the company’s offshore clients. There are some mandatory requirements for the funds in Nevis, namely, the presence of:
– registered agent
– the registered office of the fund
– acceptable fund name
– Memorandum on the establishment of a fund, made in the Registry of Nevis.
Types of Nevis Funds
– Public fund – created by families, groups, etc.
– Private foundation – created by private individuals
– State Fund
– Mixed Fund – can be created by any of the above.
Appointment of offshore funds in Nevis
– Nevis funds are mainly used for special investments.
– The fund may be an important asset protection tool.
– Protecting personal status from financial and political instability in the jurisdiction of the founder
– Property Management
– Tax planning and general financial activities
– Corporate control and management
– Schemes of employee participation in profits and pension schemes
– Charity groups
What assets can be held in an offshore fund in Nevis?
– Shares and securities
– Bank deposits
– Life insurance policies
– Investment portfolios
– Real Estate
– Intellectual property
Benefits of the Foundation on Nevis
– The presence of a legal entity
– An important asset protection tool
– Contributors have the right to exclude the deposited amount from income taxation
– Nevis offers “tax haven” for foreign investors
– Legislation Nevis provides a high level of confidentiality
– Geography Nevis promotes international relations and access to other jurisdictions of the world.
– The Nevis Foundation provides the founder and its property with a high level of asset protection.
– Payment of reasonable compensation
– Fund asset ownership
– Ability to own numerous companies and enter into agreements with third parties
– The possibility of implementing the prescribed instructions, as is the case with trusts
– No taxes on capital gains or profits.