The BVI has recently made some amendments to their Trust law which brings it in line with international trust law developments making it an even more interesting jurisdiction for clients looking to set up a trust to hold their assets.
BVI Trustee (Amendment) Act 2021
Principally the court has extended their power to allow them to make variations to authorise transactions by the trustees which previously would have not been possible, as long as the Court considers those variations to be advantageous to the management or administration of the Trust. This is particularly interesting for beneficiaries who are unable to consent to those variations – for example a beneficiary who is a minor or incapacitated.
Amendments have also been made to Reserved Powers provisions in an effort to align BVI legislation with other major trust jurisdictions. These changes make it clear that the reservation of key powers will not invalidate a BVI Trust or cause it to be included in the Settlor’s estate upon death. These powers include, among others, the power to revoke, vary or amend the trust, permit the ability to give directions regarding investment of trust property, add or exclude beneficiaries, or change the proper law of the trust. The Trustee act clarifies that the grant of these powers will not invalidate a trust in line with the Hague convention.
Other key change is to the firewall provisions which protect BVI trusts and trustees against forced heirship provisions in foreign countries. The new provisions stipulate that all questions in regards a BVI trust are to be determined by BVI law, thereby making it difficult to undermine the trust by a foreign law judgement.
For further information on BVI Trusts, or trusts in general, please contact office@rosemont-mc.com
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