How to Establish a BVI Trust

A British Virgin Islands trust qualifies as such simply by providing that the proper law of the trust is that of the British Virgin Islands.

There is no necessity for any of the trustees to be resident in the British Virgin Islands and the entire administration of the trust may take place outside of the British Virgin Islands.

For a British Virgin Islands company to act as a trustee it must be licensed under this Act or fall within one of the exceptions contained in The Banks and Trust Companies (Application Procedures) Directions 1991. The AMS Group is able to provide a trustee if this is desired. Alternatively, you may wish to utilise one of the exceptions. The most utilised exceptions are:

• a privately held British Virgin Islands International Business Company ("IBC") which is formed to act as trustee provided that it is owned by members of a family where one or more members of the family are to be principal beneficiaries of the trust and for which the IBC does not receive any remuneration;
• an IBC formed on behalf of a company or group of companies to be trustee of one or more trusts and for which IBC does not receive any remuneration.

If a client chooses to incorporate an IBC to act as trustee it is not necessary for AMS to review the trust deed.

In order to incorporate an IBC either to act as trustee or as the underlying company owned by the trust, AMS require its Company Incorporation Application to be completed.

Documentation

In order for an AMS Group company to act as a trustee, AMS requires a copy of the form of trust deed for review and approval. There is no filing requirement but a $50.00 trust duty is payable.

Other documents required are:

• an Application Form to be completed and signed by the settlor.
• a letter of wishes to be provided on settlement of the trust.
• a signed affidavit regarding Moneylaundering and Drug trafficking

As far as the form of trust deed is concerned you may base this on AMS's standard form. AMS can provide you with a draft specimen for consideration. Generally, client advisors have their own form which they prefer to use. However, where AMS act as trustee it will always want to review the trust deed to ensure it meets with AMS's requirements as trustee.

Execution, Registration, and Filing

The trustee and the settlor should sign two copies of the trust deed. The letter of wishes and the affidavit regarding Moneylaundering and Drug trafficking should be signed at the same time.

The trust instrument is exempt from registration under the Registration and Records Act but all trusts which provide British Virgin Islands law as the proper law are liable for USD50.00 trust duty.

The trust may be established by a declaration of trust by the trustees therefore allowing the identity of the settlor to remain anonymous.