Harneys Bermuda

BVI Trusts

BVI trusts are popular for a number of reasons including succession planning, asset protection and to hold shares in a family company.

A trust is a legal relationship created when a person places assets under the control of another person for the benefit of beneficiaries or a specific purpose. BVI trusts may be created for a number of reasons, including:

?     As an instrument for succession planning in the event of death or incapacity

?     To mitigate against tax liabilities

?     To protect assets (eg from exchange controls or other government interference)

?     As a confidential way of holding assets

?     To protect beneficiaries who have difficulty in managing their own affairs

?     To circumvent forced heirship rules

?     To hold shares in a family company or in corporate transactions

?     As a vehicle for philanthropic giving

Purpose Trusts

Rather than requiring identifiable beneficiaries, the BVI enables trustees to hold property on trust to carry out purposes which cannot be classed as charitable. Purpose trusts must have a purpose that is specific, reasonable and possible; it may not be immoral or contrary to BVI law; at least one trustee is a “designated person;” and the trust instrument must appoint an enforcer, who cannot be a trustee and who must be provided with information about the trust accounts and copies of all trust deeds.

Charitable and purpose trusts may exist indefinitely, while all other trusts may exist up to 360 years. The BVI allows for reserved powers, where the settlor may retain certain decision making abilities over the trustee. This may include determining the law of which jurisdiction shall govern the trust; changing the forum of the administration of the trust; removing and appointing new trustees; and excluding and including beneficiaries.

BVI trusts may be discretionary or fixed interest in nature, meaning that the trust assets can either be held for a class of beneficiaries with distributions being made at the discretion of the trustee or alternatively the trust deed can set out the specific beneficial interests of each beneficiary, such as a right to the income earned by the trust assets.

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Key contacts

Lawrie Kearns

Director of Private Wealth

Lawrie is head of the private wealth team at Harneys Fiduciary and has extensive experience acting for high net worth individuals on a wide variety of commercial and private trust, estate planning and asset protection issues.

send an email +1 284 852 4339

Amy Roost

Senior Manager

Amy Roost is a senior manager based in our London office, responsible for monitoring and improving the global client experience. 

send an email +44 20 3752 3641

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