The Potential Of Using A Managed Trust Company In Nevis

The Concept

A number of families and organisations have considered creating their own trust company in a tax-efficient jurisdiction, such as Nevis, but have concluded that the expense involved in setting up such an operation would not be justified.

An alternative is to establish a managed trust company.

The benefits of an internal trust company can be enjoyed without incurring the high initial set up costs associated with forming a separate office. Dixcart is able to assist in creating a managed trust company in Nevis.

From a compliance and regulatory perspective Nevis is a jurisdiction which does not appear on either the FATF or OECD black lists.

What Advantages Can the Jurisdiction of Nevis Offer?

The jurisdiction of Nevis offers a number of advantages including:

A very attractive tax regime: no personal income tax, no capital gains tax, no withholding tax. The ability to waive the exemptions detailed above and for entities to become tax resident in Nevis. The annual tax charge is 1%. The registers in Nevis are not open to the public which assists with confidentiality. The Nevis trust regime offers a high standard of asset protection. An international trust established in Nevis cannot be declared void or defective due to the forced heirship rules of the Settlor's domicile or the jurisdiction in which the trust was created. A flexible Multiform Foundation structure which is unique to Nevis. How Does a Managed Trust Position Work?

ABC Limited, for example, wishes to establish a trust company in Nevis and creates ABC Trust Company (Nevis) Limited. A management agreement is drawn up between ABC Limited and Dixcart, which provides for Dixcart to supply the day to day support services with the ability to represent the trust company and deal with trust company relationships.

A licence under the Nevis corporate service provider legislation is required for the provision of trustee services or to act as a corporate service provider on the island. Dixcart Management Nevis Limited holds such a licence and can provide the managed company with the appropriate compliance to meet the licence requirements. If the company, in this instance ABC Limited, acts as a trustee without establishing a physical presence on the island, a simple Nevis International Business Corporation can be formed with no requirement to be licensed.

ABC Limited may decide that it would like to deal directly with the clients and to pass on advice to the trust company with regard to...