An Offshore Perspective: Reservation Of Powers In BVI Trusts

What is a 'trust', how are they established and, more importantly, how are they controlled? This article explores how the BVI Trustee Act 1961 and the Trustee (Amendment) Act 2021 strengthen the British Virgin Islands' (the BVI) trust law by reserving powers for the settlor of a trust and providing an attractive, flexible jurisdiction for trust formation.

An introduction to trusts and the concept of reserving powers

A 'trust' is a legal relationship which is created by a person (known as a settlor) for the benefit of a person or charity (known as beneficiaries), or for a particular purpose. A trust can be created in life or on death and involves the trust assets being controlled by another person (known as a trustee). Trust instruments can also appoint a protector, who may have other powers including authorising trustees to exercise their powers. Trusts are often a popular choice to allow individuals to divest their ownership and control of assets for various