Walkers
3 Experts
7 Contributions by Walkers Experts
PRACTICE NOTES
This Practice Note offers guidance on trusts in the British Virgin Islands (BVI). For general background on the BVI, see Practice Note: Private Client—British Virgin Islands—Q&A guide [Archived].
Trusts law
The BVI’s trusts regime is set out in the Trustee Ordinance (Cap 303, Laws of British Virgin Islands) (TO) (as amended) together with the Virgin Islands Special Trusts Act 2003 (as amended) (VISTA Law). While grounded in English law principles of equity and jurisprudence, there are notable statutory divergences. English common law carries persuasive, not binding, force, and BVI trusts law has in many areas been varied and displaced. Matters of particular interest to settlors are considered below.
Registration
There is no obligation to record a trust, or its documentation, on any formal register. However, providers of trustee services resident in the BVI are registered and regulated under the Banks and Trust Companies Act, 1990 (BTCA). They must
Private Client
PRACTICE NOTES
This Practice Note offers a primer on the British Virgin Islands (BVI) in the context of offshore trusts. For broader details on the BVI, see Practice Note: Private Client—British Virgin Islands—Q&A guide [Archived].
Geography
Situated east of Puerto Rico within the Virgin Islands chain known as the Leeward Islands, the BVI comprises the principal islands of Tortola, Virgin Gorda, Anegada and Jost Van Dyke, together with more than fifty smaller islands. The North Atlantic Ocean borders the territory to the north, while the Caribbean Sea lies to the south. Road Town, the capital, is located on Tortola and is the centre of the financial services industry.
Government
Ultimate executive authority in the BVI rests with King Charles III. A resident Governor is appointed by the Queen, on the advice of the UK government, and exercises constitutional powers on her behalf. The BVI operates under its own
Private Client
PRACTICE NOTES
This Practice Note offers an overview of trusts in the British Virgin Islands (BVI). For broader BVI background, see Practice Note: Private Client—British Virgin Islands—Q&A guide. The principal legislation is the Trustee Ordinance (Cap 303, Law of BVI), as amended (TO), and the Virgin Islands Special Trusts Act 2003, as amended (VISTA Law). The texts are available via the further reading links to Spitz & Clarke Offshore Service in the related documents pod and on the BVI FSC—Legislation web page.
Types of trusts
The most frequently used BVI trusts include:
discretionary trusts
VISTA trusts
life interest trusts
fixed interest trusts
Discretionary trusts
A discretionary trust typically affords maximum flexibility and is the most commonly adopted and, in many cases, the most effective arrangement for both settlor and beneficiaries. Trustees are granted wide discretion regarding when distributions are made, in what amounts, and to which
Private Client
PRACTICE NOTES
The framework governing trusts in the British Virgin Islands (BVI) is set out in the Trustee Act (as amended) (Cap 303, Laws of the BVI) together with the Virgin Islands Special Trusts Act 2003, as amended (the VISTA Law).
Trusts formed under the VISTA Law (VISTA Trusts) commonly hold shares, whether directly or through holding structures, in operating companies rather than purely passive investment vehicles, often trading in fields unfamiliar to the trustee and regularly located at a distance from the BVI.
Addressing such demanding circumstances was the very reason the VISTA Law was designed and enacted, which in turn makes VISTA Trusts a highly effective tool within international wealth structuring.
This Practice Note considers selected aspects of the management and administration of VISTA Trusts.
Separation of trust and corporate governance
The VISTA Law acknowledges that trustees are seldom natural
Private Client
PRACTICE NOTES
British Virgin Islands (BVI) trusts law is set out in the Trustee Ordinance, Cap 303 (as amended) as revised from time to time, and the Virgin Islands Special Trusts Act 2003 (as amended) (VISTA Law). A widely used application of trusts constituted under the VISTA Law (VISTA Trusts) is the holding of shares, whether directly or indirectly, in companies undertaking trading activities.
The prudent person rule
Historically, and over many years, using trusts to own shares in trading companies has been significantly constrained by the common law duty of prudence concerning investments...
Private Client
PRACTICE NOTES
The statutory framework for trusts in the British Virgin Islands (BVI) comprises both the Trustee Ordinance (as amended) (Cap 303, Laws of BVI) along with the Virgin Islands Special Trusts Act 2003 (as amended) (the VISTA Law) (copies of the legislation are also available via the further reading links to Spitz & Clarke Offshore Service in the related documents pod and also on the BVI FSC—Legislation web page). Trusts created under the VISTA Law (VISTA Trusts) must generally observe specified formalities as prescribed and can incorporate various distinctive features enabled by the flexible and pioneering nature of the VISTA Law.
Express application
The VISTA Law is not of general application to all BVI law governed or administered trusts. To benefit from the unique opportunities it provides, the drafter of the trust instrument must insert an express clause confirming that the regime applies to the trust being
Private Client
PRACTICE NOTES
This Practice Note offers an overview of enforcement in Jersey, spanning subjects such as inconsistent decisions, costs, currency, the enforcement pathway, limitation, injunctive measures, recognition of judgments, service, pitfalls and the varieties of enforceable order. Although it refers to decisions of the Jersey courts, these are not reported by LexisNexis®, and therefore links to the judgments are not provided.
Judgments (Reciprocal Enforcement) (Jersey) Law 1960 — the 1960 Law
Judgments (Reciprocal Enforcement) Act 1973 — the 1973 Act
Judgments (Reciprocal Enforcement) Rules 1961 — the Rules
Questions and answers 1. Treaties—is your country party to any bilateral or multilateral treaties for the reciprocal recognition and enforcement of foreign judgments? What is the country's approach to entering into these treaties and what, if any, amendments or reservations has your country made to such
Dispute Resolution
If you expected to see yourself on this page, click here.
