British Virgin Islands
Morgan & Morgan Trust Services, Ltd.
Morgan & Morgan Building
Sir Francis Drake Highway, Pasea Estate
P.O. Box 958
Road Town, Tortola
British Virgin Islands
Tel: 284.494.2011
Fax: 284.494.2015
bvi@morimor.com
Morgan & Morgan Trust Services Ltd. started operations in Tortola, capital of the British Virgin Islands in the year 1988. This office is licensed to act as registered agent and registered office of the very popular business company (Business Companies – BVI BC); it also holds a trust license to act as trustee of trusts created under the laws of the British Virgin Islands (BVI).
The BVI trust may be of 2 kinds. Each is regulated by a different law, namely:
° The BVI TRUST, regulated by the Trustee Act of 1961 (based on the English Trustee Act of 1925), and
° The BVI VISTA TRUST, regulated by the Vista Act of the Virgin Islands Special Trust Act of 2004.
° BVI trusts are not required to be registered with the Company’s Registrar in the territory; its creation by the registered agent is enough. According to the law, no information on the trust may be disclosed to the public.
Some characteristics of the BVI trust are:
° The law applicable to the trust must be specified in the constitution document. Otherwise the law in the domicile of the trustee shall be deemed as the applicable law.
° The BVI trust can migrate to and from the BVI. Migration outside the BVI is possible only if the new jurisdiction recognizes the validity of the BVI trust.
° The purpose trust at perpetuity is allowed. They ought to have at least one trustee that is a resident in BVI territory.
° The maximum perpetuity term is 100 years.
° Protectors are expressly allowed and their faculties clearly defined.
° Rules of forced heirship are excluded by the BVI trust.
° Trustees may have broad discretional powers on investments.
° The BVI trust is exempted of all taxes in the territory provided that the beneficiaries are not residents in the BVI, nor the assets located within the territory.
Regarding the BVI Vista Trust (Virgin Islands Special Trust Act), this is an attractive vehicle for the settlor to ensure in specific circumstances, that the administration of the underlying company remain under the control of the directors of the company and not be transferred to the trustees as it commonly happens with other trusts.
The VISTA trust allows for the “prudent man of business rule” to be superseded, which has made trusts unattractive in those cases where the title over the assets has to remain for long periods of time with the trustee, requiring the latter’s constant intervention. The VISTA trust law allows for the owner of the company to establish the trust by transferring the shares to the trust. In turn, the trust passes the responsibility for the administration of the company on to the directors thereof.
The law also allows for the responsibility in the administration and monitoring of the business to be fully removed from the trustee, so the directors may assume such responsibility at their entire discretion. In addition, the trustee is allowed to intervene to solve specific problems such as to settle matters at boards of directors when a final decision becomes impossible to reach.
Some of the characteristics of the BVI VISTA trust are:
° The law does not apply to trusts that do not expressly state so.
° The company owned by the VISTA trust may be a BVI company that expressly allows this type of structure.
° It is the duty of the trustee only to keep the shares withheld. Therefore, any increase or reduction in the value of the shares does not become the trustee’s responsibility.
Our office holds a trust license to act as trustees in any of the vehicles allowed by BVI laws. Furthermore, we have a team of experts made of lawyers specialized in BVI law, accountants and investment advisors who can provide advice on the most suitable instrument for you and help you in getting the instrument of your choice achieve the results you are seeking.
