BVI Trusts: An Overview

What is a trust?

A trust is a legal relationship created when a person (the settlor) places assets under the control of another person (the trustee) for the benefit of specified persons (the beneficiaries) or for specified purposes. The trustee is the legal owner of the assets put into the trust and is required to manage those assets for the benefit of the beneficiaries or to further the specific purposes set out in the trust deed.

Reasons to use a trust

1. Trusts for specified persons

• asset protection, for example against claims from creditors or in divorce proceedings
• to manage assets for young, incapacitated or irresponsible beneficiaries
• to optimise the tax treatment of the assets placed in trust