Nevis trust formation is a multi-step process that includes creating the trust document, selecting and appointing a qualifying trustee and registered agent, conducting due diligence, drafting and signing the trust deed, registering the trust with the Nevis government, and, if necessary, transferring assets into the newly created trust. A basic trust formation is typically completed within a few weeks, but the overall length of the Nevis trust formation process depends on the complexity of the arrangement(s), the supporting documents required, and the time needed to complete due diligence.
This FAQ guide addresses the following topics related to setting up a Nevis trust: documents and requirements, costs associated with forming a Nevis trust, registration procedures, asset protection, and succession planning.
Key Takeaways
- A Nevis International Exempt Trust is governed by the Nevis International Exempt Trust Ordinance and can be used for wealth structuring, asset protection, succession planning, and estate planning.
- For a trust to qualify as an international trust, it needs to have at least one qualifying trustee; the settlor(s) and beneficiaries must be non-residents of Nevis, and the trust must not hold title to any real estate located in St. Kitts and Nevis.
- Generally, the trust formation process begins with selecting the appropriate structure, appointing a trustee, registering an agent (registered agent), completing all required KYC and other due diligence, drafting/creating the trust document, filing with FSRC, and moving/settling the intended assets.
- In general, Nevis Law includes provisions that protect foreign judgment creditors from making claims on trust assets and protect against claims under forced heirship laws in other countries and some creditor claims; however, a Nevis trust is NOT a complete shield against any potential legal or tax obligations you may have.
- Creating a Nevis trust does not automatically eliminate your tax or reporting obligations in another country. For instance, while creating a trust outside the U.K., the trust may still be required to report to H.M. Revenue & Customs (HMRC) through the U.K.’s Trust Registration Service.
Nevis Trust Formation FAQ
The following section addresses some of the most commonly asked questions about Nevis trusts and their formation.
What Is a Nevis Trust?
A Nevis trust is simply a trust created pursuant to laws in the jurisdiction of Nevis. A typical international wealth-planning structure is an offshore trust in the form of a Nevis International Exempt Trust. This type of trust is governed by the Nevis International Exempt Trust Ordinance.
As identified by the Nevis Financial Services Regulatory Commission (FSRC), there are many different kinds of international trusts. Examples include charitable, non-charitable, spendthrift, or protective trusts, as well as qualified foreign trusts. A trust will be classified as an “international” trust if it meets certain statutory requirements regarding the characteristics of its trustee, settlor, beneficiaries, and trust assets.
A trust may be structured to serve a variety of purposes. While some structures primarily provide asset protection, others may be used for succession planning, family wealth, estate planning, or the long-term management of investment assets.
Who Can Establish a Nevis Trust?
The creator of the trust is referred to as the settlor. The settlor places an asset with a trustee (or trustees) and determines, via the terms of the trust document, how the trustee(s) will manage the asset and to whom it shall be distributed.
According to the FSRC, for a qualifying Nevis International Exempt Trust, both the settlor and the beneficiaries of the trust must have been residents outside of Nevis. In addition, no portion of the trust assets shall contain land located within the boundaries of either St. Kitts or Nevis.
Therefore, being a nonresident does not automatically qualify one. Each proposal must meet Nevis’s legal requirements and satisfy the due diligence requirements for each proposed trustee and registered agent.
Who Are the Parties to a Nevis Trust?
The primary roles within a typical trust include multiple positions.
| Party | Main role |
| Settlor | Establishes the trust and transfers or settles assets into it |
| Trustee | Holds and administers trust property according to the trust deed and applicable law |
| Beneficiaries | Individuals or entities who may benefit from the trust |
| Protector | An optional oversight role with powers defined by the trust deed |
| Registered agent | Handles the formal registration process and related administration |
Most importantly, the trustee position, as it is their role to administer the trust (as opposed to the settlor continuing to personally own and control all the assets).
The Nevis FSRC stated that at least one trustee of an international trust must be a corporation that meets the statutory requirements. These corporations are either a trust company licensed to do business in Nevis or a trust company formed pursuant to the Nevis Business Corporation Ordinance.
How Do You Set Up a Nevis Trust?
The Nevis trust setup process can be divided into several stages. The order of these elements depends on the purpose(s) of the trust, the assets the trust will hold, and the participants (trustees, etc.) involved in creating the trust.
1. Define the Purpose of the Trust
Before drafting any trust documentation, you must define the purpose of the trust structure.
Some common purposes for creating a trust are
- Protecting your family wealth from potential risks in the future
- Planning for succession and estate planning
- Holding assets for investments
- Creating a vehicle through which to manage wealth over multiple generations
- Structuring ownership of interests in businesses
- Determining how to make distributions to beneficiaries.
Purpose matters because it affects the trust deed, trustee powers, beneficiary entitlements, and whether a “protector” or other governance arrangements are needed. For example, if a trust was formed solely to implement succession plans, its governing provisions for distributions to beneficiaries and trustee administration could differ significantly from those of a structure created to hold investment assets.
2. Select the Trustee and Registered Agent
Your trustee manages your trust, and your registered agent is responsible for registering your trust under the laws of Nevis.
A registered agent, typically an attorney or local management company, must register an international trust. The FSRC outlines all required information that must accompany registration applications, including but not limited to the name and location of your registered office, your trustee(s), and certification concerning your trust’s status.
3. Complete KYC and Due Diligence
A Nevis trust formation is not simply a matter of signing a document. The professionals who help you set up your Nevis trust will typically have to verify all parties involved in the trust, as well as the source of funds/assets for each party, before they can establish your Nevis trust.
Depending upon the specific facts and circumstances of each case, due diligence may include:
- Passport or other official government-issued ID;
- Proof of residential address;
- Information regarding the settlor;
- Information regarding beneficiaries;
- Documentation showing the source of wealth of each party;
- Documentation showing the source of funds for each party;
- Information regarding assets to be held by the trust;
- Purpose/activity of the trust.
The Nevis Financial Services Regulatory Commission has stated that AML/CFT regulations require the registered agent to collect, keep current, and update information relative to the identity of the trust’s customer(s) and beneficial owner(s), which shall include, but are not limited to, the settlor, trustees, protectors, and beneficiaries.
Another reason an incomplete documentation package will significantly prolong the timeline to form a Nevis trust.
4. Prepare and Sign the Trust Deed
The trust deed will be the main document governing your Nevis trust. It sets out various aspects that include:
- The names of those who are entitled to benefit from the trust (beneficiaries);
- When and how funds/distributions may be paid to them;
- The scope of power that the trustee has in respect of managing the trust;
- If you have chosen to appoint a protector;
- What investments the trustee may make with the trust assets;
- The rules that apply if one of the original trustees leaves the position;
- Any other changes that may be required by the settlor/trustees/protector; and
- Under what conditions shall the trust terminate
The trust deed should therefore reflect the true intentions behind establishing this asset protection structure. A general/trust deed that does not consider these aspects of your requirements, the type of assets being protected, and the relationships that exist between all parties involved could lead to an inappropriate use of a trust.
5. Register the Trust
Once the documentation and structure of the trust have been prepared, the trust will need to be registered under the Nevis International Exempt Trust framework.
In accordance with the section of the FSRC act, in order to register an international exempt trust, you must submit an application that includes payment of the prescribed fee, the name of the trust and the address at which the trust documents are held for inspection, confirmation that the trust documents comply with the legislation and all necessary particulars regarding the trustees and/or beneficiaries, and a certificate confirming certain details relating to the trust.
Thus, Nevis trust registration is a key element of forming a trust, but it is not an automatic result of executing a trust deed.
6. Settle or Transfer the Assets
The last practical step to create your new trust is to move the intended asset(s) into the trust. This particular aspect of setting up a trust is often ignored when using one of those “simple” formation guides: simply creating a trust does not automatically move all of your personal assets into it.
Depending on the type of asset you plan to transfer into the trust, you may need additional steps to complete the process. For example, moving ownership of stocks, bonds, investment accounts, real estate, intellectual property rights, or other types of assets may require different processes. Depending on where they were originally located, some asset transfers may also have specific tax implications, registration requirements, or regulatory obligations.
As such, the asset transfer phase of establishing a trust should be considered during the initial stages of creating the trust, rather than viewed as a purely administrative task once the trust is formed.
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What Are the Requirements for a Nevis Trust?
Statutory requirements differ based upon the type of international trust being formed; however, the Financial Services Regulatory Commission (FSRC) has identified a number of common or “core” conditions that must exist for an international trust to qualify as such under the laws of Nevis.
At least one qualifying trustee is required. As well, the settlor and/or beneficiaries must be non-resident(s) of Nevis. The trust property cannot consist of land located within St. Kitts and Nevis.
In conjunction with the foregoing, a typical practical formation of a Nevis trust would also generally entail some form of investigation into the parties involved in establishing the trust; the general objective of the trust; and the source and character of the assets included in the trust.
What Documents Are Needed to Establish a Nevis Trust?
There is no single document checklist that applies to every structure; the requirements will differ on a case-to-case basis, depending on the exact circumstances.
However, applicants should generally be prepared to provide:
| Document or information | Why it may be required |
| Passport or other ID | Identity verification |
| Proof of address | KYC |
| Settlor information | Establishes the person creating the trust |
| Beneficiary information | Identifies intended beneficiaries |
| Source-of-wealth evidence | Establishes how wealth was accumulated |
| Source-of-funds evidence | Establishes the origin of assets being settled |
| Details of intended assets | Helps determine how the trust will be funded and administered |
| Trust deed | Sets out the terms of the trust |
| Trustee and registered-agent details | Required for administration and registration |
Complex structures may require additional documentation, particularly where companies, investment accounts, real estate, or multiple jurisdictions are involved.
How Long Does It Take to Set Up a Nevis Trust?
The time it takes to create a Nevis Trust depends on the trust’s complexity and the level of detail provided by the settlor and other parties.
Straightforward structures can typically be created and finalised in a matter of weeks, whereas more complex structures may require months to develop.
While there isn’t an “official” formation timeline for creating trusts, the primary factors that influence this process include:
- How quickly the settlor(s) and/or other parties providing identification (KYC documentation) complete their portion of the creation process.
- Whether the origin of the party’s wealth and the origin of the funds used to fund the trust can be verified and confirmed.
- The degree of complexity contained in the trust document.
- The number of beneficiaries, the number of jurisdictions involved, and the type of assets being settled.
- Whether additional legal or tax advice will need to be obtained prior to transferring the assets.
For this reason, any time estimate from a service provider should be considered an estimate at best.
A useful way to think about the process is:
| Formation stage | What affects the timing? |
| Initial structuring | Number of parties, assets and objectives |
| KYC and due diligence | Completeness and complexity of documentation |
| Trust deed | Complexity of governance and distribution provisions |
| Registration | Completion of the required application |
| Asset settlement | Type and jurisdiction of the assets |
How Much Does It Cost to Form a Nevis Trust?
The total amount of money it will take to form the Nevis trust is dependent on how complex your structure is and what type(s) of professional service(s) you require. For example, a rough estimate for forming a Nevis trust ranges from approximately $7,000 – $15,000+, and if your structure is very complex, it could cost even more.
As an outline of all the typical costs involved in creating a Nevis trust, they include:
- Costs for trustee/registered agent fees for setting up and managing the trust
- Legal/professional fees for drafting and designing the trust
- Due diligence/compliance costs
- Depending on what assets are placed into the trust, there may be additional costs associated with transferring and administering those assets.
In addition, as outlined above, simple structures that have been set up to hold cash or stocks that are publicly traded tend to be significantly less expensive both at the initial formation stage and ongoing maintenance stages compared to more complex structures that involve other business entities or various types of foreign real property or more complicated forms of ownership interests.
Statutory registration/renewal fees charged by the Nevis Financial Services Regulatory Commission (FSRC), as mentioned previously, are just part of the entire cost of forming a Nevis trust; therefore, these costs are subject to change over time. If you plan on starting a new Nevis trust, please review the FSRC’s current fee schedule for this information prior to making your final decisions.
Additionally, we provide a comprehensive explanation of the estimated formation and ongoing administrative costs for a Nevis LLC in our article explaining how costs associated with complexity and ongoing administrative duties can impact your overall budget.
What Is the Legal Framework for a Nevis Trust?
The primary governing law for this jurisdiction is the Nevis International Exempt Trust Ordinance (the “Ordinance”) enacted in 2016; it replaces prior international trust legislation. The FSRC posts both the ordinance and all other applicable laws, regulations, etc., on its website.
The ordinance addresses several key issues as follows:
- The creation and registration of an international trust;
- The powers and responsibilities of the trustee(s) (as well as protectors, if appointed);
- Trust administration (including accounting and record-keeping requirements);
- Provisions with regard to creditors.
The FSRC also provides information regarding certain estate planning characteristics of an international trust established pursuant to the Ordinance, specifically relating to inheritance issues and the enforcement of foreign judgments.
What Are the Benefits of a Nevis Trust?
The advantages of a Nevis trust depend on how it is structured by the settlor and what the settlor wants to achieve; however, there are many different ways that a Nevis trust may be utilised, such as:
- Asset Protection: With laws in place regarding foreign judgments and certain creditor claims, a Nevis Asset Protection Trust could be a good option for those who want to plan ahead when creating a wealth strategy.
- Estate Planning and Succession: A trust can manage and distribute wealth across multiple generations. Nevis law protects the trust against certain foreign forced heirship statutes.
- Confidentiality and Privacy: Proceedings concerning international trusts (excluding criminal actions) are generally conducted privately. While “private” means confidential, it does not mean anonymous, because trustees and registered agents must still comply with all FATF AML/CFT requirements.
- Wealth Structuring for Long-Term Goals: A trust allows you to separate an asset from its beneficiary and gives trustees flexibility in managing family wealth, investments, or multi-generational assets.
Does a Nevis Trust Protect Assets From Creditors?
A Nevis trust provides a considerable amount of asset protection; however, it does not protect you against all creditors.
Nevis’ international trust legislation provides protection against foreign creditors attempting to enforce foreign court judgments in Nevis. Furthermore, if a creditor attempts to set aside a transfer to an international trust, he or she must prove the transfer was made fraudulently under a statute-based fraud standard. Therefore, timing is critical. A trust established as part of a legitimate long-term plan to accumulate wealth is significantly different from establishing a trust with the sole intention of placing your assets out of the reach of a creditor who may have commenced litigation against you.
Therefore, when referring to “maximum protection,” do not interpret this as “complete protection.” Many factors determine whether maximum protection will occur, including how the trust is structured, when the assets were transferred into the trust, what retained powers exist within the trust, and what laws govern each jurisdiction.
When Is the Best Time to Establish a Nevis Trust?
It typically makes sense to set up a trust as soon as possible before an asset-protective creditor dispute or claim is made against you; it is less difficult to protect your assets by structuring their ownership before such claims are filed than by trying to do so afterwards. Fraudulent transfers are specifically identified in the description of the legal framework provided by the Nevis FSRC.
Therefore, time (the earlier the better) is a factor to consider when setting up your Nevis trust. If you are going to transfer assets that may lead to disputes with creditors or if you are insolvent and have claims against you, seek out independent legal counsel on what course of action you can take.
Is a Nevis Trust Tax-Free?
No. A Nevis offshore trust will not automatically be considered tax-free.
A trust is taxed according to the laws of all jurisdictions it connects with. The laws include those applicable to the domicile of the settlor, the domicile of the beneficiaries, the jurisdiction of the asset(s), the domicile of the trustee(s), and the types of income generated by the trust and distributed by the trust.
For example, if a non-UK trust has any connection to the UK, it may have an obligation to register in the UK under certain conditions. HMRC currently states in its guidance that some non-UK express trusts may require registration when they connect to the UK in various ways. For instance, for trusts acquiring property in the UK or entering into a business relationship that involves UK resident trustees.
In addition, even if a Nevis offshore trust is established, registering it does not eliminate the potential for other countries’ tax or reporting obligations.
Does a Nevis Trust Need to Be Registered?
Yes, as long as you plan to create an international trust that will qualify for relief under the Nevis International Exempt Trust Statute (the “Statute”), your international trust must go through the registration process.
As stated in Section 6(1) of the Statute, only a registered agent can complete the registration process. Additionally, pursuant to Section 6(2), the required application submitted to the Financial Services Regulatory Commission (“FSRC”) must include all required information and accompanying documentation/certifications.
Therefore, there is an essential distinction between registering a trust and setting up an exempt Nevis international trust based upon the statutory requirements.
Nevis Trust Formation Checklist
Prior to a Nevis trust formation, it would be advisable for you to understand these items prior to the initiation of a Nevis trust.
- The purpose of the trust
- The proposed settlor
- The beneficiaries
- The trustee
- A registered agent
- Whether a protector will be necessary
- What assets are going to be transferred into the trust
- Identification & address documentation
- Documentation regarding source of wealth
- Documentation regarding source-of-funds
- Draft trust deed
- Registration requirements
- Reporting and tax obligations from other taxing authorities that apply
- Annual maintenance, ongoing management, and renewal
This predetermined information can provide an expedited path through the Nevis trust creation process and avoid unnecessary, time-consuming delays during due diligence.
Summary
Establishing a Nevis International Exempt Trust is structured to consist of selecting the appropriate structure, performing necessary “due diligence,” registering the trust, and transferring the assets into which you wish to place the trust. The time it takes to complete a basic structure will likely depend on your own circumstances but could take a few weeks at most. Official fees for registering a trust are $300 per year with the FSRC, plus $300 per year for annual renewal; both exclude all professional costs.
A Nevis International Exempt Trust can support asset protection, succession planning, private wealth structuring, and long-term wealth structuring. However, no matter how protective an exempt trust may be, there are limits to those protections, and an exempt trust does not shield one from legitimate claims under applicable law.
It is possible that even if a settlor has created a trust and funded that trust, he/she may still have certain tax and/or reporting requirements/obligations in his/her home jurisdiction as either the settlor(s) or beneficiary(ies); thus, it would be wise to obtain professional counsel regarding any legal/tax implications prior to creating or contributing funds to a trust.
Nevis Trust Formation FAQ
Can a Non-Resident Establish a Nevis Trust?
Yes; however, Nevis International Exempt Trusts are structured to accommodate international trusts with no residency requirement, as long as both the settlor(s) and beneficiaries meet the non-resident requirement of Nevis law.
Does a Nevis Trust Need a Local Trustee?
The statutes require all qualifying international trusts to have at least one trustee who meets the requirements set forth in the Nevis statutes. The FSRC has stated that corporations created under the Nevis Business Corporation Ordinance may qualify, along with trust companies operating in Nevis.
Can the Settlor Also Be a Beneficiary?
This depends on how the trust is structured and whether the settlor retains any control over the trust. There are several sections in the Nevis statutes that deal with what is called “settlor interest” or “retained power.” It would be advisable to discuss these issues when drafting the trust document.
What Is the Role of a Protector in a Nevis Trust?
In addition to the responsibilities of a trustee, a protector of a Nevis Trust can provide further supervision. Under the trust deed, the protector may have authority to make decisions regarding distribution, investment, and/or directions to the trustee.
Can a Nevis Trust Be Changed After Formation?
Many potential modifications to a Nevis Trust may be made after formation, including changes to the trustee, registered agent, and filing amendments, provided the trust instrument and applicable statute are complied with.
A trust may be able to acquire ownership rights in companies or other types of investment instruments, subject to any limitations or restrictions in the trust document and applicable law. Before making any transfers of particular properties, you should consider the feasibility and any resulting tax implications.
What Is the Difference Between a Nevis Trust and a Nevis LLC?
A Nevis LLC is an independent legal entity that owns assets and conducts business. A trust is a relationship where a trustee manages property held pursuant to a trust agreement. While they serve distinct functions, they can sometimes be used together in wealth planning. As such, your best choice depends upon the type of assets you wish to hold, the nature of your business activity, your desired level of corporate governance, and applicable tax considerations.
