British Virgin Islands: The Premier Jurisdiction for Trusts and Family Offices

The British Virgin Islands (BVI) is continuing to go from strength to strength as an international financial centre. 
 

Our ability to attract and facilitate global financial operations is underpinned by our dedication to providing stability, transparency, and a business-friendly environment to our clients. This dedication has not only sustained the BVI's standing as a top offshore jurisdiction but cemented our status as the favoured location for international investment. Last year alone, the BVI attracted $39 billion in foreign direct investment inflows according to United Nations Conference on Trade and Development, with our financial services offering being central to our success. Our latest report, Beyond Globalisation: The BVI's Contribution to the Global Economy, revealed how the BVI plays a crucial role in facilitating international business. An estimated $1.4 trillion is held by BVI business companies - this equates to 1.5% of the world's total GDP.

Our role in the global economy is why many are selecting the BVI as their jurisdiction of choice to manage their Family Offices and Trusts. In the current climate, there is a soaring demand not only for business investment, but for wealthy individuals and families to effectively protect their wealth and implement structures to ensure a seamless transfer of assets. For these groups, it is a necessity that they use a jurisdiction that can meet their unique set of needs. The BVI is a financial centre that is both at the core of international capital flows and can offer the ideal frameworks required for these groups to navigate the current financial ecosystem.

THE RISE OF THE FAMILY OFFICE
Family offices are not new. But we have seen them emerge more prominently in recent years. These discreet entities, traditionally serving the complex needs of the ultra-wealthy, include financial oversight, tax strategies, charitable giving, and asset protection. The landscape for family offices has transformed markedly due to a concentration of wealth among a few individuals and families who are globally mobile, necessitating advanced wealth management solutions. This has led to the proliferation of family offices to manage and protect these considerable fortunes. There has been an evident shift in capital flow demand, with many with family offices now seeking alternate investment routes for more control and insight into their funds. This trend is driven by the pursuit of flexibility, superior returns, and a want to making meaningful economic contributions. From our international clients, we have seen an increasing demand for intergenerational wealth transfer and succession planning services. Since COVID and the ongoing uncertainty from shifting geopolitical tensions, wealthy individuals and families are looking for a solution that ensures protection of their assets and ensures smooth succession planning – a solution that offers both stability and flexibility.

A DEDICATED FAMILY OFFICE SERVICE
The BVI has a strong and well-coordinated infrastructure that enhances our position as an ideal financial hub for family offices. This includes our robust legislative framework and environment, a strong regulatory system, access to experienced professional and business services and overall positive and stable social and business environment. 
 

We recognise that each family office is unique and has its own distinct requirements. Due to this, our clients have access to a comprehensive suite of services that cater to any combination of multi-faceted needs. Our services extend from establishing trust and estate structures to succession planning, which are supported by expert advice on the most suitable approach for wealth preservation and intergenerational transfer. This includes the formation of trusts and private trust companies, as well as the structuring of various fund arrangements, such as incubator or approved funds, which can operate independently or within a larger set of entities like partnerships. Additionally, family offices in the BVI can benefit from wealth management services, which are complemented by property and maritime asset management, ensuring a holistic approach to asset stewardship.

Legal expertise is readily available to provide guidance on the creation of philanthropic or charitable structures, and to assist with the intricacies of trust and estate litigation. With this diverse service offering, we welcome any request from our clients, holding the capacity to establish both single and multi-family offices.

ROBUST AND TRUSTED LEGISLATIVE FRAMEWORKS
As a jurisdiction, we provide an advanced legal environment for setting up trusts, underpinned by progressive, client-friendly legislation. Trust law in the BVI takes its cue from English trust law, incorporating both the principles of English common law and equity, which are further complemented by local statutory law. We have also continued to progress our legislative framework to support family offices and trusts including the Virgin Islands Special Trusts Act (VISTA), which is globally recognised for modernising trust law, and the BVI Business Companies Act, tailored to the international business community's needs.

The Private Trust Company regulations additionally provide a flexible regime for BVI companies acting as trustees, and the Trustee Act, has been amended to incorporate sophisticated provisions, protects against forced heirship, offers tax exemptions, and allows for the creation of various types of trusts, including extending the perpetuity period to 360 years. These legislative elements, coupled with a robust regulatory framework and access to skilled professionals, position the BVI as a leading jurisdiction for trust establishment and intergenerational wealth transfer.

SPECIALISED DISPUTE SUPPORT
Further to this, while the structures we instate for succession planning are in place to avoid disputes altogether, we understand that sometimes they can be an inevitability. To this end, our on Island and internationally based experts are leading intermediaries that can help avoid or resolve disputes, should the need arise. The availability of this expertise from around the world, and particularly in major markets, is a distinguishing feature of our offering for our clients. Should any dispute require further action, the BVI holds a clear legal framework that supports the necessary next steps. The court system in the BVI is integrated into the Eastern Caribbean Supreme Court, with the High Court serving as the court of first instance for civil matters. This includes the Commercial Division, commonly known as the Commercial Court, which is headquartered in the BVI and specialises in adjudicating international and large-scale disputes.

The BVI Commercial Court is supported by the Arbitration Act, which empowers it to assist arbitrations seated globally without interference, including the provision of interim relief and the enforcement of tribunal orders and directions. Appeals from decisions of the High Court, including those from the Commercial Court, are escalated to the Eastern Caribbean Court of Appeal. Subsequent appeals can be made to the Privy Council in London. The BVI also hosts the International Arbitration Centre, and it is common for leading Caribbean and English QCs to appear in BVI cases. The specialist nature of the Commercial Court and its support for arbitration underscore the BVI's commitment to providing a comprehensive legal framework for the resolution of complex disputes. We appreciate that any dispute, particularly within a family structure, is of a sensitive nature. Having this expertise and infrastructure available as a contingency is a comfort that the BVI can offer, further solidifying us as a jurisdiction of choice.  

THINKING LONG TERM
The international business landscape is dynamic. The state of capital flow and trends of investment will remain ever-evolving, especially with emerging geopolitical tensions driving international planning. With this, we remain vigilant and adaptive to the global economy as it stands today and for the future. By example, we have seen the emergence of decentralised finance and financial technology companies, and with it a whole new generation of business leaders with akin desires to manage this acquired wealth and establish secure succession planning. We have reacted swiftly to accommodate this, having our Commercial Court recognise cryptocurrency as currency.

Additionally, the BVI has implemented new legislation for the licensing of digital assets businesses, with a rigorous yet client-friendly approach from the BVI Financial Services Commission. We are committed to the future of wealth and finance; in whatever form it manifests. As the global economy continues to change, we will be ready to support our clients to navigate this. Families want to protect and mature their wealth to guarantee that it can be passed as efficiently and seamlessly as possible to the next generation. Our approach to family offices, with our diverse service offering and continued advancement of our legislation to meet current and future needs is why, in addition to our leading international business facilitation, we are the premier jurisdiction for family offices and trusts globally.   EG