International Trusts [Back]
Summary
The International Trusts Act (ITA) has very aggressive asset protection provisions that provide legislation specificity and certainty for professionals and end user clients.
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There are three types of trust that may be formed under the Act:
- Protective
- Charitable
- Non Charitable/ Purpose Trusts
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Very aggressive asset protection provisions. The limitation period for bringing a challenge is two years from the date of settlement of the trust or the disposition in question.
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There is a perpetuity period of 120 years for Protective Trusts.
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Charitable trusts and Non Charitable trusts are not subject to any perpetuity period.
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There are provisions that exclude forced heirship provisions and community of property laws.
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The act permits the settlor to examine some control over the trust, including the power to revoke the trust, the power to amend the trust, the power to appoint and direct the trustee and the protector.
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Only the name of the trust and the registered office and a certificate from an attorney certifying that the trust will be an international trust.
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The identity of the settlor and the trust instrument are confidential as they do not need to be filed.
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The Statute of Elizabeth does not apply.
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The proper law of the trust may be the law of St. Lucia, or any law specified in the Trust instrument.
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The act provides for the proper law of the trust to be changed.
- Laws of foreign jurisdictions and foreign judgements are not recognised in relation to trust property.
- Any challenge to a trust under the act requires a US $25,000 deposit for security for costs.
- In proceedings to challenge the validity of a disposition the onus of proof lies on the creditor and the required standard of proof is beyond reasonable doubt.
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