Trusts are popular for various reasons to hold assets, and the Nevis International Exempt Trust is indicative of the reason for such popularity as an asset protection device. A settlor looks for a safe and stable jurisdiction to hold assets and to be able to access and control such wealth. Nevis provides such security. As important, settlors consider protection from future creditors who may attack the trust trying to set it aside and gain access to the trust funds.
The Nevis International Exempt Trust law states:
- A creditor must pay for a bond of $100,000 to the Minister of Finance before bringing an action against a trust
- The burden of proof to set aside a trust requires proof “beyond a reasonable doubt”
- The statute of limitations to contest the establishment of a trust is limited to two years after the settlement of the trust
Creditors need to understand these laws in order to determine if trust assets are beyond reproach so as to form an appropriate strategy for recovery/collection.