Coverdale act as trustee for trusts governed by BVI law, including BVI’s unique VISTA Trusts. The Virgin Islands Special Trusts Act (“VISTA”) was first enacted in 2003 and subsequently amended in 2013. The VISTA trust is unique to the British Virgin Islands and has become very popular since they were introduced.
A traditional trust places a fiduciary duty on the trustee to ensure that the trust assets are protected and enhanced during the life of the trust. Generally the trust assets are invested through a BVI company and this means that the trustees take control of the company so that they can oversee the management of the assets and ensure that they adhere to the “prudent investor rule”.
The application of this rule makes the trustees act very conservatively during their stewardship of the trust assets. The resulting vigilance by the trustee can also incur additional costs in both time and money.