Asset Protection : Anguilla Trusts

Unlocking flexibility, privacy and protection: why Anguilla trusts are a smart choice for international wealth structures

A modern, flexible trust law with no rule against perpetuities

Anguilla’s Trusts Act abolishes the common law rule against perpetuities, so the trust deed can set its own duration and accumulation period to fit long-term plans. This supports multi-generational wealth, dynasty trusts and clear time horizons without artificial end dates.

Anguilla

Robust asset protection and firewall provisions

Anguilla’s “firewall” rules protect Anguilla law trusts from foreign heirship, matrimonial and insolvency claims, and from foreign tax orders, so questions of validity and property arrangements are decided under Anguilla law. The court will not vary or set aside an Anguilla trust, or recognise foreign orders about marriage, succession, insolvency or foreign taxes, which strengthens asset protection. Under the Fraudulent Dispositions Act, a creditor must bring any claim within three years of the transfer and must prove an intent to defraud; there are also protections for good-faith transferees and beneficiaries on costs and prior distributions.

Clear choice of governing law and migration capability

A clause choosing Anguilla law is valid and conclusive, and the Act lets trusts change their governing law to or from Anguilla on straightforward conditions-making migrations and re-domiciliations simple. Questions of validity, interpretation, administration, trustee powers and reserved powers are then decided under Anguilla law, providing certainty.

Powerful purpose and family-use structuring options

Trusts may be for beneficiaries and for valid charitable or non-charitable purposes, giving flexibility to hold operating companies, support philanthropy and run purpose-led structures alongside family planning. The law also allows “variant” trusts to reflect a settlor’s religion or community practices where approved, enabling culturally aligned wealth structures with bespoke terms.

Settlor- and family-friendly features (letters of wishes, protectors, reserved dynamics)

The Act recognises letters or memoranda of wishes, giving trustees flexible, non-binding guidance on succession, distributions and stewardship. It also provides for a protector (who may be the settlor or a beneficiary) with powers such as appointing or removing trustees and enforcing the trust, subject to fiduciary duties. A single trustee is permitted, and trustees may include licensed trust companies-simplifying administration and continuity.

Spendthrift and protective trusts for resilient family planning

Anguilla authorises spendthrift/protective trusts, including limits on alienation and reductions on a beneficiary’s insolvency-helping to guard against dissipation or creditor attachment. Any rule that would stop a settlor-beneficiary from creating a protective trust is abolished, supporting robust self-settled planning where appropriate.

Privacy by design with targeted transparency

Trustees owe a statutory duty of confidentiality and need not disclose their deliberations or reasons for decisions, subject to the trust terms and any court process. Trust registration is optional and the Register is not public unless a trustee authorises access for a specific trust-preserving privacy while allowing a formal registration footprint when wanted.

Wide investment powers and commercial practicality

Trustees have the powers of a beneficial owner (subject to fiduciary duties), so they can manage global assets-whether or not they produce income-nimbly. Investment powers are broad, permitting investment “of whatsoever nature and wheresoever situated”, alongside principles on diversification, suitability and taking professional advice. Schedule 2 adds a wide set of administrative and investment powers commonly used for holding structures and underlying companies.

Efficient court support and certainty of administration

The High Court has broad powers over execution, administration, trustee appointments, distributions and directions, offering efficient supervision when needed. Trustees can also seek directions proactively to improve certainty and manage risk in complex situations.

Tax neutrality for non-resident structures

“Exempt trusts”-where the settlor and beneficiaries are non-resident and no Anguilla land is held (directly or via a land-holding company)-are exempt from Anguilla income, capital gains and similar taxes on non-Anguillian assets and administration, supporting efficient cross-border planning.

Practical use cases we commonly see

• Family holding structures for operating companies and investment portfolios, using broad investment powers and optional underlying companies for governance separation.

• Multigenerational “dynasty” trusts aligned to values via letters of wishes and protector oversight, unconstrained by perpetuity rules.

• Asset protection structures calibrated with firewall provisions and protective trusts to safeguard long-term family wealth against external claims.

• Purpose-driven and philanthropic platforms combining beneficiary and non-charitable objectives under one sophisticated umbrella.

  
  

Why choose Anguilla now

Anguilla offers a modern trust law with standout features: no perpetuity rule, strong firewall protections, clear governing-law tools, optional private registration, tax neutrality for non-resident structures, wide trustee powers and practical tools like protectors and letters of wishes. For families, entrepreneurs and trustees looking for flexibility, privacy and durability across generations, Anguilla is a compelling, cost-efficient home for trusts.

Next steps

If you are considering a new trust, migrating an existing one, or updating governance with protectors. Please reach out to us.