Traditionally, establishing trusts in the British Virgin Islands
("BVI") by those from jurisdictions
which do not recognise trusts or which have forced heirship rights,
was seen as potentially problematic. To remedy this, in March 2004,
BVI enacted "firewall provisions", which are presently
consolidated in Section 83A of the Trustee Act (2020 Revision) (the
"Act"). In order to strengthen these
provisions, amendments were later made, which came into effect on 9
July 2021 through the Trustee (Amendment) Act, 2021 (the
"Amended Act").
Application of Section 83A
It is important that trustees, settlors, and beneficiaries of
BVI trusts should be able to avoid claims or attempts to have the
trust set aside or varied by a foreign court applying foreign law
principles that clash with BVI trust law. Section 83A of the Act
applies to all BVI trusts and all dispositions of property to be
held upon the trusts of such BVI trusts.
