Saint Vincent and the Grenadines: Offshore Legal and Tax Regimes
Regulation of Trusts
Trust deeds are registered in a confidential government trust registry. A registered trust under the International Trust Act, 1996 will not be rendered unenforceable because it was invalid under the laws of the settler or grantor’s domicile or residence. Purpose trusts, which are created for a specific purpose but without named beneficiaries, are allowed. A foreign judgment against a registered international trust, or its settlor or beneficiaries, is not enforceable in Saint Vincent if the judgment was based on law inconsistent with the act.
Actions against registered international trusts must be commenced within two years from date of creation of the trust. A complaining creditor may satisfy his claim against the property of a registered international trust only if that creditor can show both that the settler/grantor’s principal interest in creating the trust was to defraud him, that the disposition of property to the trust rendered the settler/grantor insolvent. Creditors must deposit USD25,000 (at the time of writing) with the courts of Saint Vincent prior to commencing an action against a registered international trust or its property. If the creditor is unsuccessful in the claim, the money may be used to pay the costs and expenses of the trust in defending the action.
Traditional fraudulent conveyance laws (Statute of Elizabeth) are not applicable to registered international trust. Unauthorised disclosures of trust information are punishable under criminal laws. The bankruptcy or insolvency of the settler/grantor under the laws of his residence or domicile will not affect a registered international trust, under the legislation. An international trust may own one or more Saint Vincent international business companies.