International Trusts

Legal Framework

The international trust remains an important feature of estate planning. The Nevis International Exempt Trust Ordinance (NIETO) provides for the creation of charitable trusts, non-charitable trusts, spendthrift or protective trusts, and qualified foreign trusts.

Qualifying as an international trust

• There must be at least one trustee, which may be a corporation incorporated under the Nevis Business Corporation Ordinance.
• The settlor and beneficiaries must at all times be non-residents of Nevis.
• The trust property must not include any land situated in St Kitts and Nevis.

Estate-planning features

• An international trust cannot be declared void, voidable or defective by reason of any forced-heirship rules of the settlor’s domicile, residence, place of incorporation, formation or establishment.
• The rule against perpetuities does not apply; unless otherwise provided, an international trust has unlimited duration.
• Foreign judgments against the trust are not enforceable in Nevis. Any civil action to recover assets must be brought anew in the Courts of the Federation of St. Kitts and Nevis.
• A trustee may combine two or more separate trusts into one, or divide a single trust into several, provided this does not impair the rights of any beneficiary or adversely affect the purpose of the trust.
• Property owned by tenants by the entireties (TBE) and contributed to an international trust by a married couple continues to be treated as TBE property, which in many jurisdictions prevents the creditors of one spouse attaching to it.
• The 2015 amendment expanded the list of authorised trust investments to include assets approved by the protector, so trustees may hold a wider variety of assets.

Creditor claims

• The sole remedy available to a creditor is to allege fraudulent transfer or disposition. A trust settled more than one year after the creditor’s cause of action accrued is not deemed fraudulent.
• A creditor seeking to set aside a transfer must prove beyond a reasonable doubt, and with clear and convincing evidence, that the transfer was a fraudulent disposition.
• A creditor of a beneficiary cannot compel a distribution in respect of a discretionary interest, nor compel a trustee or protector to exercise a discretion to distribute. A trustee may make payments on a beneficiary’s behalf without liability to any creditor.
• A creditor has a right to a beneficiary’s interest only where the beneficiary has unfettered control of the trust property and exercises it.
• A creditor has a right to a settlor’s interest only where the settlor retained a power to revoke the trust entirely and appoint the property to the settlor, the settlor’s estate or their creditors, and to the extent that power was exercised.

Protector, proper law and confidentiality

The Ordinance provides for the appointment of a Protector, responsible for monitoring the operations of the trust and ensuring its purpose is fulfilled. The Protector may direct a trustee to make and approve distributions, or direct particular investments. A trustee acting on a Protector’s directions is given statutory protection, absent the trustee’s own wilful misconduct.

The proper law of the international trust is the law expressed by the terms of the trust; failing that, the law with which the trust had the closest connection when created; failing either, the law of Nevis.

AML/CFT Regulations oblige the registered agent responsible for registering an international trust to maintain accurate and updated information on their customers, including the beneficial owners: the settlor, trustee or trustees, protector or protectors, and beneficiaries. The Ordinance provides that all non-criminal judicial proceedings relating to the trust are heard in private, and no details may be published without leave of the court.

Registration Procedure

Part 7, Section 36 of the NIETO sets out the registration process. Registration must be carried out by a registered agent, such as an attorney or a local management company. An application for entry on the register of International Trusts is made in the manner and form prescribed by the Registrar.

The application must be accompanied by

• Notice of the name and registered office of the trust.
• An undertaking that the trust document has been read and conforms with NIETO.
• The name of the trustee. One of the trustees must be a corporation incorporated under the NBCO, or a trust company doing business in Nevis.
• The prescribed fee.

Plus a certificate from a trustee company, barrister or solicitor certifying

• that the trust upon registration will be an international trust;
• the date on which the trust was created, settled or established;
• in the case of a qualified foreign trust, the law under which the trust was settled;
• where the governing law is changed to the law of Nevis, that the trust is registered as a qualified foreign trust, and the date of its registration;
• that there have been no changes made to the international trust;
• that there is no illegal activity perpetuated by the trust; and/or
• any pending litigation against the trust.

Fees

Type of Document	XCD	USD
Registration Fee (International Exempt Trust)	810.00	300.00
Registration Fee (Qualified Foreign Trust)	810.00	300.00
Certificate of Registration	54.00	20.00
Annual Renewal Fee	810.00	300.00
Certificate of Renewal of Registration	54.00	20.00
Penalty for Late Renewal	1,080.00	400.00
Reinstatement / Restoration Fee	810.00	300.00
Certificate of Good Standing	135.00	50.00
Voluntary Filings	135.00	50.00
Termination of Trust	405.00	150.00
Apostille	135.00	50.00
Miscellaneous Letter	270.00	100.00
Administrative Fee (rush requests, re-application of fees request etc.)	270.00	100.00
Filing Notice of Change of Registered Agent and Registered Office	135.00	50.00
Filing Notice of Change of Trustee	95.00	35.00
Name Reservation (after 10 days)	135.00	50.00
Renewal of Name Reservation	135.00	50.00
Certified True Copies of Filed Documents (including first 3 pages)	81.00	30.00
Each Additional Page	4.00	1.50
Certificate Certifying True Copy	95.00	35.00
Using a Restricted Word	81.00	30.00
Using Foreign / Special Character	54.00	20.00
Printing of Certificate	27.00	10.00
Duplicate Certificate of Registration	68.00	25.00
Filing Notice of Change of Name / Amendment	540.00	200.00

Fees are indicative; confirm current fees with the Commission before filing.

Forms

Download the forms for trust filings. Each opens in the document viewer, where you can read, download or print it.

Legislation

The Ordinance and its fee regulations. Each opens in the document viewer alongside the AI assistant.