Types of BVI Trusts
Here are the different types of British Virgin Islands trusts that foreigners can use for asset protection, wealth planning, and tax management.
As the name suggests, such trusts are formed to serve one or more philanthropic purposes. Unlike a traditional trust, such trusts do not have individual beneficiaries; the Attorney General of the BVI enforces the trust’s terms.
The hybrid trust combines the characteristics of a charitable trust and a non-charitable trust. Since such trusts have beneficiaries, the availability of an Enforcer is essential. An Enforcer will oversee the trustee’s duties while staying aligned with the trust’s rules and terms set forth by the settlor.
Discretionary Trusts & Fixed Interest Trusts
Discretionary trusts allow trustees to decide when and how much to distribute, whereas fixed-interest trusts provide predetermined shares to beneficiaries.
VISTA Trusts (Virgin Islands Special Trusts Act)
Such trusts are Ideal for managing company shares while allowing the settlor to retain shareholder rights. Besides, they are suitable for succession planning and long-term wealth preservation.
Non-Charitable Purpose Trusts
A Non-Charitable Purpose Trust (NCPT) is a legal instrument that can serve a specific, lawful purpose. Unlike conventional trusts, it does not benefit specific individuals. Appointing an Enforcer is one of the key requirements to set up an NCPT. The Enforcer oversees how the trustee meets the underlying purposes. NCPTs can be used to hold assets for corporate structuring, securitization, and related purposes. Furthermore, they can help with private wealth planning, support non-charitable causes, and provide enhanced asset protection.
Please note that the BVI trust cost will vary depending on the type of trust you choose.
