Turks and Caicos: Types of Company
The Trust Ordinance (1990) sets out the law relating to trusts. The Ordinance is not exhaustive and English principles of law apply unless overridden by the specific statutory provisions. The Ordinance was drafted with a view to making the Turks and Caicos Island a more attractive jurisdiction in which to settle a trust and to this end contains features from other jurisdictions and recommendations from eminent English counsel.
The Ordinance defines a professional trustee as someone who receives remuneration for his services as a trustee, sets out the general requirements for licensing professional trustees, the powers and duties of the Superintendent of Trustees, and has miscellaneous provisions regarding liability, confidentiality and the non application of the Recording of Deeds Ordinance, which improves privacy.
The Ordinance has been approved for the purposes of the Hague Convention.
Key characteristics of the trusts regime in the Turks and Caicos Islands are as follows:
- There is strict regulation of licensed professional trustees (see Offshore Legal and Tax Regimes);
- There is no requirement to register trust deed or the beneficiaries;
- There is no rule against perpetuities;
- The trust deed may specify one proper law for interpretation of the terms of the trust deed and another to apply to the administration of the trust assets;
- Foreign judgements are excluded;
- The Voidable Dispositions Ordinance 1998 sharply circumscribes the circumstances in which a "disposition" can be set aside by a creditor;
- Trustees have wide investment powers;
- Re-domiciliation of a trust is permitted.
See Law of Offshore for further details of the legal regime for Trusts in Turks and Caicos.