Coverdale acts as a trustee for trusts that are governed by BVI law, including the 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 something unique to the British Virgin Islands and they have 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”.
This rule and its application make 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.