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Form an Anguilla Asset Protection Trust Introduction
The Anguilla Trust Act of 2014 culminated many years of studying trust laws from several countries. This new law provides flexible usage of trusts. Several types of trusts are allowed including asset protection trusts, charitable purpose trusts, commercial trusts, and spendthrift trusts. Founders (Settlors) have the freedom to form different types of trusts. The new law also created an optional Protector (who could be the trustee) who has powers to replace the trustee and appoint new ones.
The new law abolished The Rule against Perpetuities which is an old British Common Law preventing trusts from eternal existence. Now, Anguilla trusts can be perpetual and can accumulate assets and income for as long as it chooses to remain in existence.
The Fraudulent Dispositions Ordinance is similar to other countries’ Fraudulent Conveyance Laws. These laws are to prevent settlers from creating trusts to hide assets knowing that legal claims against the settlor exists (or are expected soon) which could seize the assets to pay off court judgments and other debts. Anguilla requires creditors of the settlor to prove that the settlor was insolvent (financially broke) at the time he/she transferred assets into the trust, or became insolvent because of the transfers. In addition, the creditors must file their legal actions within three years from the day the assets were transferred to the trust. These are difficult hurdles for creditors to jump through before they can make any transfer of assets to the trust void. This makes Anguilla a tougher country for creditors to challenge transfers of assets to its trusts.
Unless a creditor can meet the above requirements, an Anguilla court shall not recognize the validity of any claim against an Anguilla Trust even by a court order from another country related to:
(a) Marital divorce;
(b) Inheritance succession rights;
(c) Creditors’ claims in a bankruptcy or debtor’s lawsuit; or
(d) any foreign government’s tax or duty
Anguilla is located in the Caribbean being the most northern island of the Leeward Islands. English settlers colonized Anguilla in 1650 after sailing from nearby Saint Kitts Island. England administered Anguilla into the early 19th century. Anguilla Day is celebrated on May 30th when in 1967 the locals rebelled and defeated the Royal Police Force from St. Kitts and forced them from the island. England intervened and allowed secession meetings to drag on for thirteen years until December 19, 1980. On that day, Anguilla was declared a separate United Kingdom Overseas Territory with some autonomy.
Anguilla Asset Protection Trust Benefits
Anguilla Asset Protection Trusts receive many benefits including:
A trust can use any name in any language as long as it does cause confusion with other similarly named legal entities.
Office Address and Local Agent
While a trust is not a formal legal entity it will still need a registered agent and a local address for process of service or government notices. This is provided automatically by your agent (such as this one) when the trust is established.
A trust has few members. The Founder (Settlor) creates the trust and funds it with assets. The Beneficiaries are usually heirs (current and future) and other family members and the spouse who are the recipients of the trust assets and income depending on how the Settlor wishes. A Trustee oversees and manages the trust on behalf of the beneficiaries. A Protector in an optional provision to oversee the Trustee to make sure the wishes of the Settlor and the Beneficiaries rights are being fulfilled. Usually people opt not to have the Protector because it slows down the needed changes and requests for funds. The Protector can be the Settlor.
Directors and Officers
Trusts do not have directors or officers. However, they can have a Council of experts (CPA, lawyer, financial planners, etc.) who counsel the Trustee and guide the management of the assets pursuant to the Settlor’s wishes and are overseen by the Trustee and the Protector.
If the Trust opens an office to hire employees to manage the assets and make investments or collect income payments (rents, royalties, etc.) then officers to manage the office may be needed.
There is no minimum required capital for a Trust to be established.
Trusts are not subject to taxes and Anguilla does not have a corporate or income tax for offshore corporations or Trusts.
Trusts only need to register once with the government. There are annual fees payable for trustee services that are very reasonable. Inquire for the fees.
Only the Trust Charter is filed with the government registry which does not contain the names of the Settlor or the Beneficiaries whose names remain private.
Accounting and Audit Requirements
There are no requirements for accounting methods or any audit requirements. However, the Trust Charter normally has provisions regarding full accounting and acceptable accounting practices with the rights of the Settlor, Protector, and the Beneficiaries to inspect all records.
Annual General Meeting
There is no requirement for annual general meetings for a trust.
Time Required for Registration
A Trust can be registered with the government within 24 hours.
There are no shelf trusts in Anguilla.
Form an Anguilla Asset Protection Trust Conclusion
Anguilla Asset Protection Trusts receive many benefits including: asset protection, less taxes, privacy, lifetime financial management, preservation of family wealth, continuation of family business, estate planning, retirement plans, charitable causes, low registration fee, fast registration, and English is the official language.