Anguilla Trusts

Trust companies are corporations that are set up to conduct fiduciary duties of trusts and agencies. They offer a means by which money or property may be held or managed on behalf of individuals that are incapable of doing so if they are minors, have limited or no business and legal experience or physically incapacitated. A trust is also an obligation that binds a trustee to handle property or money in a specific way for the benefit of the beneficiaries.

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Settlor or Grantor – Under Anguillan law, a settlor may be anyone who in accordance with the Anguilla Trust Law is capable of transferring property. A trustee, protector or beneficiary may be a settlor. The “settlor” is defined as the person who creates the trust and he or she dictates the manner in which the property and funds put in the trust should be dealt with by means of a trust deed. The property put into the trust may be money, land, security, building, valuable belongings, pension funds, boats, property or investments.

Trustee – With the exception of minors, a trustee may be anyone who in accordance with Anguillan law is capable of exercising the functions of a trustee of a trust and may be a beneficiary, protector or settlor of a trust. The trustee is the trust property’s “legal owner” and is the person who administers the trust. There may be more than one trustee. The trustee follows the directions laid out in the terms of the trust.

Anguillan trusts have a minimum of one trustee, except if a greater number is stipulated in the trust deed. The existence of a lesser number of trustees than the number stated in the terms of the trust cannot stop the trust from existing legally. Charitable trusts have a maximum number of four (4) trustees. In the event that the total number of trustees stated exceeds four, only the first four persons named shall be legally regarded as the trustees. While performing his duties, a trustee should act with due diligence, perform at this best, be prudent and or good faith.

Beneficiary – Anyone who benefits or gains from the trust is a beneficiary. Beneficiaries may be named individually or categorized into different groups such as the settlor’s company or family. They may also be identified by a description or by reference to a relationship that the beneficiary may hold with someone else who may be deceased or alive at the time when the trust was formed. A beneficiary may choose to disclaim part or all of his or her interest under a trust irrespective of despite the fact that he or she may or may not have received any of the property or funds put in the trust. The beneficiary may request to exercise the functions given to the trustee by a letter or memoranda of wishes prepared by him or on his behalf by the trustee. However, fiduciary functions may not be imposed on a trustee by simply issuing a letter or memoranda of wishes.

Protector – The trust deed may make provisions for a trust protector. A protector may be defined as a third party appointed by a trust deed with the objective of overseeing the way in which a trust is being administered in accordance with the terms of the trust. Anguillan trust law allows for a settlor, beneficiary or trustee to be the protector of the trust. Unless stated otherwise in the deed, the protector may remove and appoint an additional or new trustee (s). In the event that that there is more than one protector, any duty given to the protector may be done if more than one-half of the total number protectors is in agreement with performing such duties. Protectors are not considered or counted as trustees while fulfilling their duties.

Trust Legislation – Anguillan trusts were initially regulated by the Trusts Act 1994 and were then more fully dealt with by the Trust Companies and Offshore Banking Act or TCOBA, which was amended in 1995. The Trust Companies and Offshore Banking (Fees) Regulations provide the details and application forms needed for creating trust companies in Anguilla.

Anguilla issues two main types trust licenses: General Trust Company License and Restricted Trust Company License.

General Trust Company Licenses are not issued to International Business Companies (IBCs). This type of license enables the licensee to fully undertake trust business and subsidiaries. In order to establish a trust, a minimum paid-up capital of USD25, 000 is required and licensees any change of ownership or director must approved by the Financial Services Commission (FSC).

Trust companies with restricted trust licenses are only able to offer trust services on behalf of the persons stated on the license application. Any changes made to the application must be filed with the relevant authority. Trusts with restricted licenses have no minimum capital requirement. The share capital to be issued will be set by the FSC depending on the case presented by the application.

Anguilla offshore trusts must be registered through a Registered Trust Provider. Trust service providers must have two authorized agents and a main office. Each authorized agent must reside in Anguilla and agree in writing to act as an authorized agent.

Anguilla Trust Benefits

  • Tax deferral on accumulated capital gains
  • Means of retirement planning and insurance against unforeseen accidents
  • Means of securing children’s education
  • Asset protection from severe alimony and maintenance claims
  • Ability to transfer property to future generations while maintaining control by placing restrictions on who is may benefit from the trust
  • Distribution of income and capital gains with lower tax rates among relatives
  • Trust assets do not form part of a deceased’s estate, hence, less probate fees in the event of death
  • Property administration on behalf of underage, inexperienced or infirmed beneficiaries who are unable to properly manage property.