8 Core Principles That Shape a Strong Nevis Trust Structure

Nevis offers a stable legal and regulatory environment that supports international wealth management through favorable tax treatment and strong asset protection laws. These advantages make it a preferred jurisdiction for individuals seeking long-term financial security and control.

Asset protection

Nevis is regarded as one of the two leading jurisdictions in the world for asset protection. Its legal framework is specifically structured to make it extremely difficult for third parties to reach or enforce claims against trust assets through foreign courts or external enforcement actions.

Key protections include:

• Privacy and confidentiality are fundamental to Nevis trust law. Details such as the names of beneficiaries, the identity of the settlor, and the terms of the trust deed are not filed in public registries or shared with third parties without a court order. This confidentiality reduces the visibility of assets and discourages targeting by creditors, investigators, or litigants. In most cases, even the existence of the trust remains unknown to anyone outside the structure unless voluntarily disclosed.
• Foreign judgments are not recognized in Nevis. Any creditor seeking to enforce a foreign ruling must file a completely new claim in the Nevis High Court. This requirement prevents outside courts from gaining authority over Nevis trusts and protects assets from external enforcement actions.
• Creditors face strict procedural requirements before a case can proceed. They must appoint a licensed attorney in Nevis and deposit a bond, typically set at a minimum of USD 100,000 before the court will consider the claim. This upfront cost helps deter unfounded or speculative lawsuits.
• Nevis trust law allows the inclusion of clauses that suspend or restrict distributions to beneficiaries who are involved in legal action or insolvency proceedings. These provisions help preserve trust assets and prevent creditors from accessing funds intended for at-risk beneficiaries.

Statute of Limitations

Nevis law provides clear time limits that restrict when claims against a trust can be brought.

Under Section 26 of the Nevis International Exempt Trust Ordinance (CAP 7.03N), any claim alleging that a Nevis trust structure or transfer of assets was made to defraud a creditor must be filed within one year from the date the creditor’s cause of action arose. The term cause of action is defined as the earliest event or act that gives a creditor a legal right to sue. For example, the date a debt became due, or a contract was breached. It is not the date of judgment, lawsuit filing, or discovery but the original event that created the creditor’s claim.  Once that one-year period has passed, the claim is permanently barred. If the trust was created before the cause of action existed, it cannot be challenged at all.

A separate two-year limitation period applies to individuals who claim they had an ownership or equitable interest in property before it was transferred into a Nevis trust. Under Section 50(2) of the Ordinance, these individuals must bring their claim within two years from the date the property was settled into the trust. If no claim is made within that time, their rights to challenge the transfer expire completely. This provision protects trusts from later disputes over ownership and ensures that once property is settled in Nevis, it cannot be subjected to open-ended or delayed claims.

Tax Treatment and Exemptions

Nevis is a tax-neutral jurisdiction. Nevis trust structures registered under Nevis law are exempt from local taxes, duties, and exchange controls. This includes income tax, capital gains tax, inheritance tax, and withholding tax. These exemptions are codified in Part VIII of the Nevis International Exempt Trust Ordinance:

Part VIII

Exemption from taxes and duties.

49. Notwithstanding any provision to the contrary in any enactment, a trust registered under this ordinance shall be exempt from—

a) all income tax;

b) all estate, inheritance, succession and gift tax payable with respect to the trust property by reason of any death;

c) stamp duty with respect to all instruments relating to the trust property or to transactions carried out by the trustee on behalf of the trust; and

d) all exchange controls.

This exemption applies as long as the trust satisfies the definition of an international trust, which requires the settlor and beneficiaries to be non-residents of Nevis and excludes local real estate from the trust’s holdings.

Nevis’ tax neutrality does not remove the obligation to comply with tax reporting requirements in the settlor’s, trustee, protector or beneficiaries’ home jurisdictions. Tax treatment ultimately depends on the laws of the individual’s country of residence or citizenship.

We are not tax advisors, and clients should consult a qualified tax professional to understand how these rules apply to their specific circumstances.

The effectiveness of a Nevis trust structures begins with how well its deed is drafted. Each clause should clearly reflect the trust’s objectives and the settlor’s intent. A carefully structured deed provides the foundation for asset protection, continuity, and flexibility across generations.

1. Purpose

The trust deed should reflect your main objectives and the specific outcomes you want to achieve. Each purpose influences how certain clauses are drafted and how the trust functions in practice.

• Asset protection: protect personal and family wealth from potential creditors, legal judgments, and enforcement actions.
• Commercial risk: separate personal assets from business activities to reduce exposure to corporate or professional liabilities.
• Divorce or family disputes: preserve assets and family stability in the event of separation, conflict, or competing claims.
• Political or economic instability: provide a secure jurisdiction for holding assets when a home country faces uncertainty or confiscation risk.
• Confidentiality and privacy: keep ownership details and distributions outside public record and away from third-party scrutiny.
• Tax planning: allow for legitimate international structuring that supports efficient and compliant tax outcomes.
• Succession planning: ensure that wealth passes smoothly to chosen heirs without disruption or loss of control.
• Multigenerational wealth preservation: maintain family assets and oversight across multiple generations under consistent management.
• Simplified probate and cross-border estate administration: eliminate delays and complications arising from multiple probate processes in different jurisdictions.

2. Type of Trust

Trusts fall into several categories, and more than one classification can apply at the same time. Each reflects a different level of control, flexibility, and permanence. The most suitable choice depends on your priorities for management, protection, and family planning.

Discretionary vs Non-discretionary Trusts

• Discretionary trust: the trustee holds discretion over how and when to distribute income or capital to beneficiaries. This structure provides strong protection because beneficiaries have no fixed entitlement.
• Non-discretionary trust: the trustee must follow fixed instructions in the trust deed, such as specified payments or distribution schedules. This offers predictability but less flexibility.

Revocable vs Irrevocable Trusts

• Revocable trust: the settlor retains authority to revoke or amend the trust. This option allows continued control but offers weaker protection since the assets remain connected to the settlor.
• Irrevocable trust: the settlor permanently transfers ownership to the trust and cannot alter or revoke it. This structure offers stronger protection and permanence for long-term goals.

You can find a more detailed explanation in our article Revocable vs Irrevocable Trusts, available here.

Common Combinations

• Discretionary irrevocable trust: the preferred structure for asset protection, succession, and long-term wealth management.
• Discretionary revocable trust: suitable for clients who want trustee flexibility while retaining personal control.
• Non-discretionary irrevocable trust: effective for fixed obligations, such as family maintenance or education funding.

Note for US Persons:

A Nevis trust structure may qualify as a grantor or non-grantor trust under U.S. tax law. An irrevocable discretionary structure usually meets the criteria for non-grantor status, since the settlor does not control or benefit from the assets. The correct classification depends on the trust deed and retained powers, so clients should confirm this with a qualified U.S. tax advisor before formation.

3. Key Roles of the Trust

Each Nevis trust structure must clearly identify the parties who hold roles and responsibilities within the structure. The combination of these parties determines how the trust operates, how decisions are made, and how control is balanced.

Settlor

The settlor is the person or entity that creates the trust and contributes the assets placed under its control. By transferring ownership of those assets to the trustee, the settlor establishes a legal relationship in which the trustee holds and manages the property for the benefit of the beneficiaries. The settlor defines the trust’s purpose, identifies the beneficiaries, and sets the framework that governs how the trustee must act. Under Nevis law, the settlor’s identity remains private and is not recorded in any public register.

The settlor may be designated in one of the following ways:

• Individual settlor: used when a person personally settles assets into the trust. This is common for estate planning, family protection, or succession structures.
• Entity settlor: used when a company or other legal entity contributes assets, often as part of a broader corporate or investment structure.
• Nominee settlor: used when additional layer of privacy or separation is needed. We can provide a nominee settlor as an optional service. This arrangement supports clients who prefer additional privacy while keeping the trust fully compliant with due diligence and legal standards.

The settlor’s role usually ends once the trust is formed, although limited powers may be reserved. Under the Nevis International Exempt Trust Ordinance, the settlor can retain certain powers or rights without affecting the trust’s validity. These powers are carefully limited to preserve trustee independence and maintain legal separation of ownership.

Permitted reserved powers may include:

• The right to receive income or defined distributions, including for tax obligations.
• The authority to appoint or remove trustees or protectors.
• The right to act as investment adviser.
• Limited powers of appointment, excluding benefits to the settlor or their creditors.

While these rights are recognized under Nevis law, retaining extensive powers may have implications for both asset protection and tax classification in the settlor’s home country. We advise obtaining personalized tax and legal advice before finalizing which powers to include in the trust deed.

Trustee

The trustee is appointed by the settlor and serves as the legal owner of the trust assets. The trustee manages and administers those assets in accordance with the trust deed, the interests of the beneficiaries, and all applicable laws. Acting in a fiduciary capacity, the trustee must act in good faith, exercise proper care and skill, and always place the beneficiaries’ interests first. Core responsibilities include managing assets, maintaining records, preparing accounts, and fulfilling all duties required under Nevis law.

Nevis law requires that each international trust appoint at least one licensed Nevis trustee. This requirement can be met in one of the following ways:

• Professional trustee: a licensed Nevis trust company, such as Trust Nevis, that handles all fiduciary, administrative, and compliance duties for the trust. This option offers full professional management under Nevis regulation.
• Professional trustee with co-trustees: combines a licensed Nevis trustee with one or more trusted individuals or family advisors. This allows family participation and oversight while maintaining Nevis as the governing jurisdiction.
• Private trust company (PTC) in Nevis: a Nevis company formed solely to act as trustee for one or more related family trusts. It is managed by a board of directors or managers, which may include family members, trusted advisors, or professional directors. A PTC can provide privacy and control while remaining compliant with local regulation.

Beneficiaries

Beneficiaries are the persons or entities (companies and/or foundations) who may benefit from the trust as defined in the trust deed. Under Nevis law, beneficiaries may be specifically named or identified by reference to a class or relationship, such as descendants or family members of the settlor. This flexibility allows a Nevis trust structure to operate across multiple generations and adapt to future circumstances.

Common categories include:

• Primary beneficiaries: those designated to receive benefits during the trust’s active term.
• Secondary or contingent beneficiaries: those who may benefit under certain conditions, such as upon the death of a primary beneficiary.
• Future or unborn beneficiaries: descendants or family members not yet born at the time of establishment, included through class definitions.
• Charitable beneficiaries: entities or causes that may receive part of the trust’s assets for philanthropic purposes.

Protector

The protector is an optional role that provides independent oversight of the trustee. While not required under Nevis law, many international and family trusts include a protector to strengthen governance and preserve the settlor’s intent. The protector does not manage trust assets but exercises specific powers that have been appointed to oversee the trustee’s actions.

Typical powers include:

• Approving or vetoing distributions to beneficiaries.
• Adding or removing trustees.
• Adding or removing beneficiaries.
• Approving or revising the trust’s investment policy.
• Authorizing major amendments or structural changes.

In most Nevis trust structures, the protector is an individual chosen by the settlor or a trusted advisor appointed after formation. The protector acts in a fiduciary capacity and must exercise their powers in good faith, ensuring that the trust continues to operate according to its original purpose and the governing law of Nevis.

4. Trust Assets and Settlement

Assets may be transferred into the trust when it is first established or added later as further and/or ongoing contributions. If the trust is intended for future use, it can be formed with a nominal initial value of around USD 1,000, allowing the structure to exist in readiness for later funding.

Each contribution must be formally transferred to the trustee to create a valid settlement. This involves executing proper transfer documents and updating records to reflect legal ownership by the trustee. Ongoing contributions are permitted at any time, provided each transfer satisfies the relevant legal and administrative requirements.

Types of Assets

• Cash or bank deposits held in domestic or international financial institutions.
• Marketable securities, including shares, bonds, and investment portfolios.
• Interests in private companies or partnerships, including Nevis LLCs and foreign corporations.
• Real estate located outside Nevis.
• Intellectual property such as patents, trademarks, and copyrights.
• Precious metals, art, or other valuable collectibles.
• Digital assets, including cryptocurrency or tokenized property, when permitted by the trustee and properly documented.
• Loans or receivables, where the trust acts as lender or beneficiary of repayment.

Note on Real Estate

While a Nevis international trust may hold real estate located outside Nevis, any property remains subject to the laws and jurisdiction of the country where it is situated. Local courts retain authority over real estate within their territory, including potential enforcement or registration matters, regardless of the trust’s governing law.

Loans, Liens, and Equity Stripping

A Nevis trust structure may extend or receive loans as part of its investment strategy or asset-protection design. Trustees can use secured or unsecured lending arrangements, provided these are consistent with the trust deed and documented at arm’s length.

Equity-stripping techniques may also be used, where assets are legally encumbered through internal loans or liens held by a trust-controlled entity. This reduces the apparent equity value of assets on public record, discouraging external claims or attachment attempts.

All such arrangements must be properly documented, commercially reasonable, and supported by independent valuation or advice. While these mechanisms can strengthen asset protection, they must also comply with applicable tax and anti-fraud rules in the client’s home jurisdiction.

5. Distributions

Trust distributions may be structured to reflect the trust’s overall purpose and the degree of discretion granted to the trustee. Distributions can be discretionary, mandatory, or guided by formal written instructions such as a letter of wishes. In a discretionary trust, the trustee determines when and how distributions are made, allowing flexibility to respond to changing family or financial circumstances. A mandatory distribution clause, by contrast, requires the trustee to make payments or transfers according to pre-determined terms.

The trust deed can also include additional provisions that strengthen asset protection and ensure practical control:

• Suspension of distributions allows the trustee to temporarily withhold payments if a beneficiary is involved in litigation, insolvency, or any situation that may expose trust assets to third-party claims.
• Protective beneficiary clauses designate a beneficiary under financial or legal distress as a “protective” beneficiary, suspending their entitlement until the issue is resolved.
• Spendthrift and anti-alienation clauses prevent beneficiaries from assigning, pledging, or selling their interest in the trust before receiving a distribution.
• Accumulation clauses permit trustees to retain income or reinvest undistributed funds to preserve capital during periods of uncertainty.

6. Duress and Legal Pressure

Nevis law provides explicit protection for trustees, protectors, and beneficiaries against external coercion. Section 16 of the Nevis International Exempt Trust Ordinance directs all parties to disregard any instruction or approval given under compulsion, threat, or legal pressure. This includes attempts by foreign courts, administrative bodies, or individuals to influence the administration or distribution of trust assets.

A trust deed may include a specific duress clause confirming that any instruction made under coercion is void and unenforceable. Trustees acting in good faith to resist such pressure are protected from liability under Nevis law. These provisions preserve the independence of the trust and prevent outside parties from undermining its purpose or directing its administration.

7. Re-domiciliation and Structural Flexibility

Nevis international trusts are designed with flexibility to adapt to changing legal, personal, or financial circumstances. The trust deed may authorize the governing law of the trust, or any separable aspect of it such as administration or investment, to be changed to another jurisdiction or from another jurisdiction to Nevis.

When a trust redomiciles into Nevis, it retains legal continuity, and no provision of its prior governing law can render it void, invalid, or unlawful once registered under Nevis law. Likewise, a trust transferring out of Nevis remains valid, and Nevis law does not restrict its continued operation elsewhere.

This flexibility allows families and corporate groups to maintain long-term structures that respond to changes in residence, regulation, or strategic objectives without requiring dissolution or re-formation. Re-domiciliation can be completed through a trustee resolution or supplemental deed, ensuring smooth transition while preserving the trust’s history, terms, and protections.

8. Succession and Incapacity Planning

Nevis trusts are designed for continuity across generations, making them effective long-term succession vehicles. Successor trustees, protectors, and beneficiaries can be appointed within the deed to prevent any interruption in management. If a settlor, protector, or key party becomes incapacitated or passes away, the trust continues to operate as a separate legal arrangement. This ensures that control and administration remain consistent without the need for probate or local court intervention.

The trust deed can include detailed provisions to govern incapacity, authorize successor appointments, and direct how decision-making authority transfers in such cases. Combined with Nevis’s legal independence from foreign heirship rights, this framework allows families to maintain stability, privacy, and uninterrupted administration during generational transitions or periods of incapacity.

Governance, Compliance, and Accounting

The long-term effectiveness of a Nevis trust structure depends on sound governance, accurate record-keeping, and compliance with both local and international standards. Trustees and registered agents are responsible for maintaining the trust’s legal standing, transparency, and professional administration.

• Registered office: every trust is required to maintain a registered office in Nevis. This serves as the official address for service of documents, correspondence, and regulatory matters.
• Annual renewal: each trust must renew its registration every year through its licensed Nevis trustee or registered agent. Renewal involves submitting the prescribed form, paying the government renewal fee, and obtaining an updated certificate of registration. The trust must remain in good standing to retain its legal status.
• Due diligence: trustees must maintain current KYC and due-diligence records for the settlor, beneficiaries, and any controlling persons in accordance with anti-money-laundering (AML) and counter-terrorism-financing (CTF) regulations. The identities of these parties are not publicly disclosed.
• Books and records: trustees must keep proper books of account detailing all receipts, expenditures, transactions, and the trust’s financial position. Records must be retained for at least five years and kept at the registered office or another approved location. While audits and public financial statements are not required, trustees are expected to maintain clear asset records and ledgers for transparency and accountability.
• Internal governance: trustees should keep detailed records of resolutions, investment decisions, and key actions affecting the trust. Professional accountants or administrators may be engaged to assist with financial reporting, ensuring accuracy and compliance with best practices.
• Underlying entities: when a trust holds companies, LLCs, or regulated investments, those entities must meet their own jurisdictional compliance, accounting, and filing requirements.
• Information exchange: if a trust qualifies as a reporting financial institution under the Common Reporting Standard (CRS) or the U.S. Foreign Account Tax Compliance Act (FATCA), the trustee must collect tax identification information and report to the Nevis Financial Services Regulatory Commission (FSRC) for onward exchange with relevant tax authorities.
• Penalties for non-compliance: failure to maintain proper records, renew the trust, or comply with reporting obligations may result in penalties, loss of registration, or regulatory action.

Additional Note

Nevis’s privacy laws do not override tax and reporting obligations in the client’s home jurisdiction. Settlors, protectors, and beneficiaries must comply with all applicable tax reporting and disclosure requirements, including those for foreign trusts or entities. Many countries also apply anti-avoidance or controlled foreign company (CFC) rules that can attribute income or create reporting duties even when the trust itself is tax-neutral in Nevis.

Timeline

The full establishment process for a Nevis trust structure typically takes 2-3 weeks once all required documents are received. The outline below summarizes the main stages and expected timeframes.

1. KYC and Due Diligence

The process begins with completion of Know-Your-Client (KYC) and due diligence checks for all relevant parties, including the settlor, beneficiaries, and any controlling persons. Once all required documents are submitted, this review is usually finalized within a few business days.

2. Trust Deed Drafting

After KYC approval, we begin drafting the trust deed. This stage may include one or more calls or emails to confirm specific wishes and structural details. Once the draft is complete, it is sent for your review and signature. The drafting and approval process typically takes about one week, depending on how quickly feedback and signatures are provided.

3. Registration and Certificate Issuance

After the trust deed is signed, we proceed with registration before the Nevis Financial Services Regulatory Commission. Once approved, a Certificate of Registration is issued confirming the trust’s legal formation. The registration process generally takes around one week.

4. Additional Services

If the structure includes additional entities such as LLCs, IBCs, or a Private Trust Company (PTC), extra time should be allowed. Incorporating these entities usually takes about one week.

Bank account applications are processed independently by the chosen financial institution. Depending on the bank, jurisdiction, and client profile, this stage can take anywhere from several weeks to a few months. The timeline is influenced by the bank’s internal review process, transaction profile, and documentation requirements.

KYC Requirements

Know Your Customer (KYC) documentation is required for all individuals involved in the structure, including:

Structure	Roles Requiring KYC
Trust	Settlor, Beneficiaries, Protector
LLC	Manager, Member, Ultimate Beneficial Owner
IBC	Directors, Shareholders, Ultimate Beneficial Owner
Private Trust Company (PTC)	Manager/Director, Member/Shareholder, Ultimate Beneficial Owner

Required Documents

• Notarized color copy of full passport
• Notarized color copy of a second form of ID (e.g. driver’s license or national ID)
• Notarized proof of residential address dated within the last 3 months (e.g. utility bill)
• Source of funds, including a brief written statement (1–2 paragraphs) providing general context regarding your income and business activities.
• Bank reference letter or copies of bank statements showing at least 12 months of history
• Professional reference issued within the last 3 months

Documents may be notarized by a licensed attorney, bank officer, accountant, or other recognized professional.

Forms to Be Completed (will be provided by us):

• KYC Form
• Due Diligence From
• Affidavit of No Criminal Record
• Trust Questionnaire
• LLC/IBC From

Guidelines for Translated Documents

For any documents that are not in English, please follow the process below:

1. Have the document translated by a certified translator who is licensed or otherwise authorized to provide official translations. We can assist with certain languages, so please check with our team before proceeding.
2. Once translated, both the original document and the certified translation must be notarized together to confirm accuracy and authenticity

Work With Trust Nevis

Trust Nevis is a boutique service provider and licensed resident agent that supports clients who want to benefit from Nevis´ long-standing trust and corporate laws. Our work draws on the long history of NTL Trust, a global fiduciary and immigration advisory group that has operated since 1994. NTL Trust operates through a number of connected entities that provide support with structures, compliance, and cross-border planning. Trust Nevis was created within this group to focus solely on Nevis structures.

We assist individuals, families, and entrepreneurs with establishing structures that support their personal and commercial objectives. Our team works closely with legal counsel and financial advisors so each structure remains practical, compliant, and suitable for long-term use within Nevis.

Why Clients Work With Us

• We maintain strict confidentiality and treat client information with discretion.
• Our team has long-standing experience with Nevis trusts and companies, supported by a professional history that spans more than two decades within the group.
• Attorneys, accountants, and advisors rely on us because we follow a consistent process and provide accurate information.
• We stay available throughout setup and administration so clients can reach us easily and receive clear guidance at each stage.