The new Trusts Act is the culmination of an exhaustive study of the trusts legislation of many other jurisdictions. The decision was taken to repeal the existing trusts legislation and replace it with a completely new Ordinance, rather than attempt to amend it.
The Trusts Ordinance, which has its roots in English trust law, provides a framework so flexible that the only limitation to its use is the imagination of the trust practitioner. Specifically, the Ordinance permits commercial or charitable purpose trusts, unit trusts, spendthrift trusts, asset protection trusts and what are termed variant trusts. The provision for variant trusts permits a settlor to create a trust (in whatever form and by whatever name) of a type recognized by the law or rules of his religion or nationality or which is customarily used by his community.
The Ordinance provides for a protector of the trust (who may be the trustee). The protector may be provided with the power to remove the trustee and to appoint new or additional trustees.
The Rule Against Perpetuities has been abolished and accumulation of income throughout the full term of a trust is possible.
The Fraudulent Dispositions Ordinance provides that a fraudulent disposition is voidable by a creditor provided that the settlor was insolvent at the time of the disposition or became so as a result thereof and provided that the creditor commences his action within three years of the date that the assets were settled into trust. The burden of proving that the settlor was or became insolvent as a result of the transfer is on the creditor.
In relation to asset (or creditor) protection trusts, therefore, Anguilla has deliberately taken a more conservative approach than some jurisdictions.
Where a trust is created under the laws of Anguilla, the Court shall not vary it, set it aside or recognize the validity of any claim against the trust property pursuant to the law of another jurisdiction or the Order of another Court in respect of:
- marriage or its termination;
- succession rights;
- the claims of creditors in an insolvency;
- the imposition of any foreign tax or duty.
Other characteristics of an Anguilla trust include choice of governing law and flight provisions.
Anguilla Summary
Anguilla is a British overseas territory in the Caribbean, the most northerly of the Leeward Islands in the Lesser Antilles. It consists of 5 islands, with the capital, The Valley situated on the main island of Anguilla.
Status, Economic, Legal System & Infrastructure
Status
Anguilla is one of Britain's Overseas Territories in the Caribbean and as such it enjoys a high degree of political stability. All political parties are strongly committed to the growth of Anguilla as a quality financial services centre.
Although the country is essentially self governing, its legislature is the democratically elected House of Assembly. The Constitution gives the British appointed Governor certain fundamental reserve powers. All legislation must be assented to by the Governor as H.M. The Queen's representative.
Economic
The significant growth in Government revenues earned from the financial services sector over the last few years is a testament to the success of the policies to date. Anguilla is well positioned as a major player in the international arena.
Legal
Anguilla is a common law jurisdiction. Its judicial system is administered by the Eastern Caribbean Supreme Court the appeal process culminates with the Privy Council. The Court system is serviced by a number of firms of fully qualified and experienced lawyers.
Infrastructure
The professional infrastructure is well developed, with major accounting firms represented on the island. The telecommunications system is of a world standard providing direct access worldwide.
Legislation:
- The Proceeds of Criminal Conduct Act 2000
- The Money Laundering Reporting Authority Act 2000
- The Company Management Act 2000
- The Trust Companies and Offshore Banking Act 2000
- International Business Companies Act 2000
- The Companies Act 2000
- The Limited Liability Company Act 2000
- The Limited Partnership Act 2000
Taxation & Exchange Control
Taxation
Unlike many financial services centres, Anguilla is truly a neutral tax jurisdiction. There are no income, capital gains, estate, profit or other forms of direct taxation on either individuals or corporations, whether resident in Anguilla or not. This makes Anguilla a very attractive location for financial services professionals to base themselves. The Government recognises the desirability of expanding Anguilla's professional infrastructure and has very recently established a new programme allowing for multi-year work permits of up to four years duration and relaxed residency rules.
Anglo-Overseas Trust Company Limited
The Mason Complex, Suite 19 & 20
P.O. Box I4052
The Valley
Anguilla, B.W.I
Tel: (264) 497-7416
Fax: (264) 497-7417
ATU General Trust (Anguilla) Inc.
Mitchell House
P .O. Box 174
The Valley
Anguilla, B.W.I
Tel: (264) 498-8800
Fax: (264) 498-8880
Codan Trust Company (Anguilla) Limited
Mitchell House
P O Box 174
The Valley
Anguilla, B.W.I.
Tel: (264) 461-8800
Fax: (264) 461-8880
First Anguilla Trust Company Ltd.
Mitchell House
P.O Box 174
The Valley
Anguilla, B.W.I
Tel: (264) 498-8800
Fax: (264) 498-8880
Geneva Trust Corporation
P O Box 941
201 Rogers Office Building
Edwin Wallace Rey Drive
George Hill
Anguilla, B.W.I.
Tel: (264) 498-5858
Fax: (264) 497-5504
Lutea (Anguilla) Limited
P.O. Box 1533
S1 South
Auckland House
The Quarter
Anguilla TV1 13P
Tel: (264) 498-0340
Fax: (264) 498-0341
Mossack Fonseca & Co. (British Anguilla) Limited
#25 Mason Complex
P.O. Box 193
The Valley
Anguilla, BWI
Tel: (264) 498-7777
Fax: (264) 497-3727
United Trust (Anguilla) Limited
Babrow Building
P O Box 371
The Valley
Anguilla, B.W.I
Tel: (264) 497-4224
Fax (264) 497-4220
