VISTA TRUSTS

 

The Virgin Islands Special Trust Act, 2003 was enacted to provide succession for corporate businesses

 

Whilst a trust is widely recognized as the premier vehicle for succession, the use of trusts has been impeded by historic laws designed to preserve the value of trust investments.  The requirement for trustees to monitor the affairs of underlying companies creates a number of problems for the settlor and trustee.

 

The BVI remains the leader in creating measures to meet the legitimate needs of international clients and VISTA provides new opportunities for individuals wishing to establish a trust of shares in their companies, but who hitherto felt disinclined to do so as a result of the loss of control and the inherent conflict between a prudent trustee and the entrepreneurial flair required to run a successful business.

 

Family businesses carry substantially more risk than an investment portfolio.  Professional trustees do not possess the skills relevant to a particular business which thus exposes the trustee to liability.

 

The business of the settlor is a personal investment encompassing tradition, employment and long term family planning.  VISTA enables the settler to establish a trust of his company.  The Settlor is able to confer on the trustee a role more suited to a trustee’s abilities.  By reducing the liability of the trustee a VISTA trust significantly reduces the cost of trust administration.

 

In addition the beneficiaries and directors may apply to the court if trustees fail to comply with the requirements for non-intervention or the requirements for director appointment and removal and shares cannot be sold without the approval of the directors.

 

VISTA applies only to “designated shares” of an underlying BVI company and the  trustee of a VISTA trust must be licenced.  Blenheim will be pleased to act as your professional trustee, assist with any aspect of VISTA trust engrossment, administration, and form the underlying BVI holding company.