Isle of Man Trust and Company – a “Has Been” Jurisdiction
Historically, Isle of Man companies and trusts were the most popular asset protection and structures available. In 1958 the Isle of Man got out from underneath UK control. In 1961 the Isle of Man abolished the surtax, making it a so-called “tax haven.” In 1973, Isle of Man became a popular banking center. With the Trustee Act 1961, Variation of Trust Act 1961 and Perpetuities and Accumulations Act 1968, Isle of Man trusts became popular.
With Nevis Business Corporation Ordinance 1984 and the Nevis Limited Liability Company Ordinance, which was first passed in 1995, Nevis laws were far superior in asset protection and privacy over its IoM counterpart.
The Cook Islands International Trusts Act was originally established in 1988. It had a one to two year statute of limitations on fraudulent conveyance. Fraudulent conveyance must be proven beyond reasonable doubt. This means that when you transfer assets into a Cook Islands trust, it is extremely difficult for a creditor to challenge the transfer.
Nevis and Cook Islands Far Surpass Isle of Man Laws
Isle of Man entities are extremely expensive. They have inferior laws to Nevis and Cook Islands.
Moreover, the due diligence procedures in the Isle of Man are almost torturous. That is, after submitting the initially required documents, there are usually two or three more rounds of “now we need this,” “now we need that.” In the end, our customers are angry and frustrated.
So, we strongly discourage Isle of Man due to inferior laws, punishing due diligence procedures and extreme expense. Do not set up an Isle of Man trust or company. Opt for a Cook Islands trust and a Nevis LLC instead.
Last Updated on November 18, 2019