Nevis Private Trust Companies: Keeping it in the Family

1. Introduction

Private Trust Companies (PTCs) have become indispensable tools for family offices, particularly in multi-generational wealth planning. These entities are widely adopted in jurisdictions such as the British Virgin Islands (BVI) and the Cayman Islands, where they are subject to specific regulations intended to provide a secure framework for managing family trusts.

However, Nevis, as a preeminent Offshore Trust jurisdiction, has discreetly carved out an important niche in PTCs during recent years. A Nevis IBC offers a streamlined route to running your own PTC. With a legal framework that consciously avoids overburdening PTCs with regulation, Nevis allows for nimble, private, and cost-effective PTC structures. For many family offices Nevis has therefore become an attractive jurisdiction for establishing PTCs.

This article explores the essential features of Nevis Private Trust Companies, how they work, how they differ from the models used in Cayman and BVI, and shows why International Business Corporations (IBCs) are preferred over LLCs in the trustee role.

2. What Is a Private Trust Company?

A Private Trust Company is a corporate entity created for the sole purpose of acting as a trustee. Unlike professional trust companies that serve the public, PTCs exclusively manage trusts for a single family or closely connected group. Their “private” nature means PTCs can deliver substantial benefits:

Greater privacy
Greater focus on individual needs
Custom governance
Enhanced control by settlors or family members
Potential cost savings
Simplified succession planning

In most traditional setups, a family office uses a PTC as the trustee for multiple related trusts. Family members and their trusted advisers may serve on the board, and the company will often delegate investment or administrative functions to external professionals. TrustNevis.com‘s professional service providers offer services of incorporation, management and administration to PTCs.

3. The Regulatory Approach: Increasing Complexity

In jurisdictions such as the BVI and Cayman Islands, PTCs have evolved under detailed legislative frameworks. While these structures are reliable and well-established, their regulatory burdens are not insignificant, increasing costs and reducing flexibility especially for smaller single-family offices.

In many cases in Nevis we are dealing with “start-up” family offices, meaning global entrepreneurs who are self-made and have not had a family office before, but recognize the need to protect their wealth for future generations. In fact, many clients who come to us don’t know what a family office is, but start off needing a Nevis trust for asset protection and succession planning purposes.

Let’s compare how things work in BVI and Cayman first, before we explain the advantages of Nevis.

British Virgin Islands (BVI):

PTCs must apply for an exemption under the Banks and Trust Companies Act.
They are restricted to managing trusts related to “connected persons” only.
A BVI-licensed Registered Agent must be appointed.
The law prohibits PTCs from charging trustee fees (unless acting through a licensed trust company).

Cayman Islands:

PTCs must register with the Cayman Islands Monetary Authority (CIMA).
A Cayman-licensed trust company must be involved as a service provider or administrator.
Only a limited number of trusts may be administered.
Record-keeping and compliance standards are strict, with severe penalties for errors or omissions.

These requirements create significant costs and operational overhead. For many family offices, the intention behind using a PTC—namely, simplicity and control—is partially defeated by the red tape.

4. Nevis Private Trust Companies

Nevis offers a compelling contrast. While the Nevis International Exempt Trust Ordinance (NIETO) 1994 governs trusts in the jurisdiction, it does not impose specific regulations on PTCs. Instead, section 2 of NIETO allows the trustee of an international trust as one where at least one (1) of the trustees is either—

a corporation incorporated under the Nevis Business Corporation Ordinance, Cap. 7.01 (N)
a limited liability company formed under the Nevis Limited Liability Company Ordinance, Cap. 7.04 (N);
a trust company licensed in Nevis;
an attorney-at-law or firm of attorneys-at-law duly licensed by the Nevis Island Administration to carry on the business of a registered agent;
a multiform foundation established and registered under the Multiform Foundations Ordinance, Cap. 7.08 (N).

This effectively means that in Nevis, an ordinary IBC or LLC can serve as a trustee (PTC) without needing a license, exemption, or special regulatory status.

Key features of the Nevis Private Trust Companies:

No licensing requirement
No minimum capital
No limit on the number of trusts
No prohibition on charging trustee fees
No requirement to involve a licensed Nevis trustee
Fast formation: a PTC can be created in a few business days
Full privacy: registry records do not disclose settlor or beneficiary information

This setup simplifies regulatory matters, while maintaining strong asset protection and trust law standards. For family offices, it offers the same core benefits as regulated jurisdictions.

5. Why Nevis IBCs Are Preferable to LLCs as Trustees

Although LLCs and Foundations may also function as PTCs, IBCs remain the preferred vehicle for the trustee role. This preference is largely due to the structural characteristics of IBCs that align more naturally with the fiduciary obligations of a trustee.

IBCs offer:

Formal governance: IBCs follow a more traditional corporate governance model, with directors, officers, minutes, and resolutions—features that instill accountability and transparency, as well as independence which is frequently a key legal requirement in trusts where discretion is involved.
Predictable legal treatment: Courts globally are more familiar with the duties of directors in corporate contexts than with the often looser member-managed LLCs.
Enhanced professionalism: The corporate format of an IBC lends itself to appointing a board that includes professional advisers, providing a clear record of decision-making and oversight.
Compatibility with third-party service providers: Banks and custodians are typically more comfortable dealing with formal corporations than flexible LLCs, especially when acting in a fiduciary capacity.

LLCs, while useful for operating companies or joint ventures, are inherently nimble and often managed more informally. For fiduciary roles requiring documentation, continuity, and structured governance, the IBC remains the more robust choice.

6. Nevis Private Trust Companies and the Family Office Model

Family offices often deal with complex portfolios including real estate, private equity, and legacy investments, as well as oten handling more mundane tasks like booking travel. Managing these through trusts provides tax efficiency, asset protection, and continuity. But professional trustees often struggle with clients’ desire for control, especially when clients want to make investment decisions.

A Nevis PTC solves this problem elegantly:

Control remains in the family: Family members may sit on the board of the PTC.
No interference from regulators: With no license or local service provider needed, families retain autonomy.
Administrative convenience: The same PTC can act across multiple related trusts: for example, separate trusts for each generation or sibling.
Operational efficiency: Banks and asset managers can interact with a known corporate counterparty, again across a range of related trusts.

This ability to participate actively in decision-making processes gives clients confidence and makes the trustee role more personal and effective.

7. Ownership of the PTC: Risk Management and Structuring

One of the most important considerations in designing a PTC-based structure is determining who actually owns the PTC. Although the settlor or family members could own the PTC shares directly, doing so introduces risks:

Succession issues: Upon death, shares pass through probate, possibly compromising the trust structure.
Tax concerns: Ownership could trigger Controlled Foreign Corporation (CFC) rules or inheritance tax. This issue is especially relevant in jurisdictions that do not recognize trusts, as they could consider the PTC to be the owner of the trust assets.
Legal vulnerability: Courts may view the trust as a sham if the settlor retains too much control.

Better options include:

Fiduciary ownership: The shares of the PTC can be held by a purpose trust, ensuring continuity and mitigating personal tax exposure.
Foundation ownership: A Nevis Multiform Foundation or a foreign foundation (e.g., Panama or Liechtenstein) can hold the shares. This removes personal ownership risks while allowing control through the foundation board.

This structure offers the best of both worlds: operational efficiency and risk containment.

8. Practical Considerations: Bank Accounts and Trust Registration

Opening bank accounts for Nevis Private Trust Companies is typically straightforward. Once the PTC has completed KYB with a partner bank, sub-accounts for each trust can be quickly opened. While pooled accounts are possible, separate accounts per trust are generally preferred for transparency and regulatory hygiene.

Under NIETO, each trust must be registered with the Nevis Registrar of International Trusts within 30 days of creation. The PTC must certify the trust deed and provide it to the bank. Importantly:

The registry is closed to the public
No settlor or beneficiary details are disclosed
A certificate of registration is issued as conclusive proof of the trust’s existence

This system strikes an effective balance between legal formality and client confidentiality.

9. International Access: Managing Nevis PTCs from Abroad

A major strength of Nevis’ legal framework is that PTCs can be managed entirely from abroad. A foreign fiduciary firm—say, in Switzerland, Dubai, or Singapore—can administer a Nevis Private Trust Company without setting foot on the island. This allows family offices to leverage Nevis’ favorable trust law while maintaining service continuity from their jurisdiction of choice.

This creates an attractive “gateway” into Nevis for law firms, wealth managers, and tax advisers seeking flexible, asset-protective solutions for their clients, without the need for the regulatory work of setting up a branch or subsidiary.

10. Conclusion: Nevis PTCs as the Future of Private Trust Management

In a world where privacy is diminishing and compliance costs are rising, Nevis offers a rare countertrend: simplicity without sacrifice. For family offices accustomed to the regulated frameworks of Cayman or BVI, the Nevis model is refreshingly chill. PTCs can be created quickly, administered flexibly, and integrated into global structures without onerous obligations.

And when structured via IBCs—with carefully planned ownership solutions—they offer precisely what successful families need: control, protection, and peace of mind.

11. Summary Table: Nevis vs Cayman vs BVI PTCs

Feature	Nevis	Cayman Islands	BVI
Licensing Requirement	None	Exempt registration with CIMA	Exemption under BTCA
Capital Requirementse	None	Usually required	None
Trustee Fees Allowed	Yes	No (unless licensed)	No
Limit on Number of Trusts	No	Yes	Yes
Local Trustee Involvement	Not required	Required	Required
Formation Time	1–2 days	2–4 weeks	2–4 weeks
Registry Disclosuree	Trustee name only	Various disclosures	Various disclosures
Governing Law for Trusts	NIETO 1994	Trusts Law (2020)	Trustee Act (1961, amended)

Trust Nevis to do what it does best: provide a secure base for your global finances, quietly, efficiently, and with an unmatched level of discretion.

12. Take the Next Step with TrustNevis.com

At TrustNevis.com, we specialize in designing custom Nevis Private Trust Companies for family offices, fiduciaries, and professional advisers around the world. Whether you’re looking to simplify a complex arrangement or starting a new family governance plan, our team of experts can help you explore your options.

Schedule a free, no-obligation consultation today to learn how a Nevis PTC can enhance your estate plan, protect your assets, and future-proof your family’s legacy.

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