In previous posts I have discussed how to use an Offshore Asset Protection Trust to protect your assets from lawsuits and creditors.
One of the strongest Asset Protection Trusts is the Nevis Asset Protection Trust. A Nevis Asset Protection Trust is formed under the Nevis International Exempt Trust Ordinance 0f 1994. It has scveral benefits over other trusts that make it extremely difficult and cost prohibitive for creditors to try to seize the assets held by the trust. I have listed some of those assets below.
Nevis Asset Protection Trust Benefits
1. Nevis does not recognize foreign judgments. This means that if a creditor has a judgment against you in Canada, they will have to re-litigate their claim all over again in the courts of Nevis.
2. Confidentiality. There are no registration requirements in Nevis beyond disclosing the name of the trust and the Trustee’s contact details (often a trust company or law firm). This means that if a creditor were to search the trust registry, they would be unable to find your name or your assets.
3. Unlike many jurisdictions, the Settlor of the Trust and the Beneficiary of the Trust can be the same person.
4. Short statute of limitations. If a creditor wishes to commence legal proceedings to set aside the transfer of assets to the trust on the basis of fraudulent conveyance, there is a short time period of 1 to 2 years for doing so. After the time limit expires, the claim is said to be “statute barred”.
5. Creditors must post a $USD 100,000.00 bond. Before a creditor can bring a legal proceeding against an international trust, the must post a $100,000.00 bond.
6. A creditor has a high hurdle of proof to meet. If a creditor brings a legal proceeding to set aside the transfer to the trust as a fraudulent conveyance, the creditor must prove their case “beyond a reasonable doubt” with clear and convincing evidence that the Settlor (that’s you) established the trust to keep money from that particular creditor. The “beyond reasonable doubt” standard is the highest standard of proof there is. This means that if you set up the trust for any other reason, such as estate planning, or international diversification, it would be very difficult for a creditor to succeed.
7. No rule against perpetuities. In Canada, a trust is deemed to have sold their assets at fair market value after 21 years. This could result in significant capital gains tax. There is no such rule in Nevis and a trust can last indefinitely.
8. Ease of setting up. It is easier to establish an Asset Protection Trust in Nevis than in many other countries. You do not need to visit Nevis to set up an Asset Protection Trust. Instead, you can use the services of my firm to work with a Nevis based representative to set up the trust for you.
9. Good track record. There have been no reported cases of Nevis Asset Protection Trust being set aside as a fraudulent conveyance by the Nevis courts.
All of the above factors, make Nevis an excellent choice for setting up your Offshore Asset Protection Trust.
If you would like to set up an Offshore Asset Protection Trust click here