Nevis Multiform Foundation: Asset Protection

The Nevis Multiform Foundation, governed by the Nevis Multiform Foundations Ordinance of 2004, is a legal structure that shares features of both a legal entity and a trust, given its flexibility to adopt or transform into different corporate forms. Together with the Nevis trust, the foundation is a robust corporate vehicle option for asset protection.

One vehicle, every form. Protection that adapts with you.

Asset Protection:

1. No owners: contributed assets cease to belong to the founder and become part of an autonomous estate, beyond the reach of personal creditors.
2. Non-recognition of foreign judgments: Nevis does not recognize rulings or court orders from other jurisdictions; the creditor must initiate a new lawsuit in Nevis.
3. Procedural barriers to litigation: very short statutes of limitation (1 to 2 years) and a requirement for the plaintiff to post a bond of approximately US$100,000 before initiating proceedings.

Confidentiality:

1. No public register of beneficiaries: the Memorandum of Establishment and internal bylaws are not publicly accessible.
2. Protected corporate veil: the law does not allow piercing of the veil, preserving the privacy of the structure and its beneficiaries.

Structural Flexibility:

1. One vehicle, multiple forms: it can operate as a pure foundation or adopt features of a company, partnership, or trust, and migrate between them without losing its legal personality or continuity.
2. Redomiciliation: allows the continuation of foreign foundations or entities (e.g., Panama, Seychelles) into Nevis, and vice versa, as convenient.
3. Simple governance: requires a registered agent and registered office in Nevis, a Foundation Council (management board), and a Secretary; members may be of any nationality and non-residents.

Bylaws:

1. Private and confidential document: the bylaws are not registered and are not publicly accessible; they remain in the custody of the founder or the council.
2. Content: the bylaws govern the beneficiaries, the foundation council, the procedure for distributing assets, amendment mechanisms, among other matters.
3. Flexibility: the bylaws can be amended according to the mechanism stipulated in the corporate documents.
4. Beneficiary instructions: the bylaws may include detailed provisions on how, when, and under what conditions distributions are made, including minimum ages, educational milestones, family events, or incentive clauses.
5. 100% foreign participation: no nationality or residency restrictions for founders, councilors, or beneficiaries.

Estate and Succession Planning:

1. Succession without forced heirship: the forced heirship rules of the founder’s jurisdiction do not apply to assets transferred to the foundation.
2. Protector role: a protector may be appointed with oversight powers over the Council, including the removal of councilors and prior consent for significant acts.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.