Flexibility

The Trusts Act (Revised Statutes of Anguilla, Chapter T70) 2000 is the most comprehensive legislation to address developing issues in the law of trusts. To this end, it provides the utmost flexibility to the financial planner. The Act makes provision for variant trusts and other innovations and is ideal for use as a Special Purpose Trust in financial planning structures because of its wide ranging powers and provisions allowing extensive reserved powers.

Variant trusts

Under these, the settlor may create a trust of a type recognised by the law of his religion or nationality, or customarily used in his community. Foreign language trusts may also be created.

Choice of law options

The settlor may choose the laws of Anguilla or other law, and may amend this choice during the life of the trust. This is especially useful in "duress" situations, where a lawsuit threatens the trust. The choice of law is valid, effective and conclusive. The Act also expressly provides that foreign laws prohibiting trusts, or providing for forced heirship, shall not be given effect. Jurisdiction has also been conferred over foreign trusts, and the contravention of a foreign law will not void an Anguilla-situs trust.

The use of a Protector

This officer, who enforces the trust for the beneficiaries, is empowered, if necessary, to remove the trustees. It is also an office required for the creation of a "commercial purpose" trust.

Extensive incorporation by reference

Schedules of "trustee powers" and "authorised investments" may be incorporated by reference into the trust instrument.

Specific provisions protecting the trust

The law specifically provides that an Anguillian-created trust shall not be varied or set aside, nor shall a claim against the trust be recognised under the law or court order of another country with respect to matrimonial matters, succession rights, creditors' claims or foreign taxes. Further, these provisions are explicitly made effective notwithstanding the Reciprocal Enforcement of Judgments Act (Revised Statutes of Anguilla, Chapter R20).

Strengthened protection against creditors

The confidentiality of the trust is further protected by the Fraudulent Dispositions Act (Revised Statutes of Anguilla, Chapter 60). Designed to work primarily with the Trusts Act (Revised Statutes of Anguilla, Chapter 70) 2000, this enactment strengthens the ability of the trustee to avoid creditors' claims by shifting the burden of proof of fraudulent transfer from the debtor to the creditor; such actions have a three-year limitation period.

Expanded definition of "trustee"

A company may be a sole or co-trustee, a beneficiary, a settlor or a protector of the trust.

An extensive range of trust purposes

These may vary from charitable, commercial or asset protection, to any of the more traditional types of trusts.