The Limited Liability Company (LLC) serves as a valuable foundation for consolidating assets and businesses within a comprehensive estate and asset protection strategy. A relatively recent addition to the legal landscape, the LLC has garnered recognition for its versatility and benefits. For an in-depth exploration of the history and advantages of LLCs, I recommend referring to my previous articles on the subject. However, this article focuses specifically on examining one of the most innovative and proactive LLC jurisdictions globally – Nevis.
Where is Nevis?
Located in the Caribbean, Nevis is a tiny island forming part of the Nevis-St. Kitts jurisdiction. Following the lead of the Cook Islands, Nevis swiftly established itself as a player in the realm of asset protection. Initially implementing Asset Protection Trust statutes, Nevis bolstered its legal framework by introducing an LLC statute in 1995, further enhancing it in 2015. Through dedicated eVorts and continual legislative enhancements, Nevis has emerged as a premier international asset protection jurisdiction, steadfast in its commitment to safeguarding assets.
The Nevis LLC
Similar to a conventional LLC, a Nevis LLC operates as a pass-through tax entity, mirroring the treatment of a standard U.S. based LLC for tax considerations. Nevertheless, where the Nevis LLC excels is in the realm of asset protection. Noteworthy advantages of a Nevis LLC include:
- The Charging Order is the exclusive remedy against a member of an LLC in Nevis – By Statute!
- If a judgement is recognized against a member of a Nevis LLC (not an easy task itself), then a Charging Order can be applied for once, and is good for 3 years. After that it expires and is non-renewable.
- Under Nevis law the transfer of assets into an LLC for receipt of the membership interest is by definition NOT a fraudulent conveyance.
- A Nevis single member LLC has all the protections of a multi-member LLC.
- A plaintiff attempting to sue an LLC must post a $100,000 (EC Dollars which is about
$37,000 U.S.) bond prior to starting the action. - The prevailing party in the lawsuit is entitled to legal fees of from the loser.
- You may appoint a Protector in a Nevis LLC and utilize strong spendthrift and anti- alienation clauses.
- Managers and Directors of a Nevis LLC are immune from company liability.
- Members and Managers of the LLC are private and are not published or listed anywhere.
- There is no local tax imposed and no annual financial reporting requirements in Nevis.
- The LLC may be owned by an individual, corporation or your Bridge Trust ®.
Basically, it’s all the benefits of the best U.S. jurisdictions combined with the added advantage that Nevis is an offshore asset protection jurisdiction which makes it very difficult for an assailant to successful win a judgement.
When to use a Nevis LLC
When engaging in offshore planning, it is crucial to distinguish between the tool and the strategy. While the Nevis LLC serves as a valuable tool, it may not always be suitable or advantageous in every scenario. There are a few key situations where utilizing a Nevis LLC provides substantial benefits:
✅ Holding Offshore Investments – If you have foreign investments or international business interests, a Nevis LLC adds a protective legal firewall. In this situation, the assets are already benefiting from internationalization.
✅ IRA & Retirement Plan Protection – If your IRA lacks strong creditor protections, moving assets into a Nevis LLC enhances security.
✅ International Intellectual Property (IP) Ownership – Holding patents, trademarks, or copyrights through a Nevis LLC protects these assets globally.
In these specific scenarios, deploying a Nevis LLC can oVer substantial advantages and enhance asset protection strategies.
When not to use a Nevis LLC
🚫 For U.S. Real Estate – U.S. courts have jurisdiction over U.S. real estate, making offshore ownership ineffective for protection. Because real estate is immovable, having an offshore entity directly owning U.S.-based real estate does not automatically grant access to the advantages provided by Nevis LLC laws. A more effective approach involves having your U.S. real estate owned by a U.S.-based LLC, which is then integrated into your comprehensive asset protection strategy, including your Bridge Trust®.
🚫 If You Want to Avoid IRS Reporting – A Nevis LLC requires international reporting (e.g., IRS Form 8858, FBAR filings).
🚫 If You’re Not Comfortable with Offshore Complexity – Offshore structures require specialized legal guidance and compliance.
How the Nevis Trust Compares to the Cook Islands Trust
Both Nevis and the Cook Islands are strong offshore asset protection jurisdictions, but the Cook Islands Trust is considered the gold standard.
💡 Verdict: The Cook Islands Trust is superior for high-risk individuals, but Nevis offers strong protection with slightly less history of legal enforcement.
Why The Bridge Trust® is the Best Alternative for 99% of Clients
A fully offshore trust (whether Nevis or Cook Islands) requires complex IRS reporting, high maintenance fees, and ongoing trustee oversight.
For most people, a hybrid approach is far more practical—and that’s where The Bridge Trust® comes in.
What is The Bridge Trust®?
✅ Starts as a domesticated offshore trust – No IRS Form 3520 or offshore compliance until needed.
✅ Transforms into Cook Islands Trust only if necessary – Offers offshore protection on demand.
✅ Lower maintenance costs – Unlike a fully offshore trust, The Bridge Trust® keeps expenses low while keeping control in your hands.
✅ Proven legal strategy – Uses tested U.S. and offshore legal protections.
Summary
The utilization of a Nevis LLC should be part of a well-thought-out and integrated asset protection framework. Emphasizing strategy over tools is crucial. A common misstep individuals make is becoming enthralled by the advantages of a specific tool, such as the Nevis LLC, and attempting to implement it in isolation without a comprehensive plan. To optimize outcomes, save time, and resources, it is paramount to concentrate on the end results.
✔️ A Nevis Trust is a solid offshore asset protection tool, but for most people, a fully offshore structure is unnecessary.
✔️ Nevis LLCs are excellent for offshore investments, retirement plan protection, and international IP ownership, but not ideal for U.S.-based real estate.
✔️ The Cook Islands Trust remains the gold standard in offshore trusts but comes with high costs and IRS reporting.
✔️ The Bridge Trust® is the superior solution for most individuals, combining domestic simplicity with offshore strength when needed.
An effective approach is to seek guidance from an experienced asset protection attorney. By leveraging their expertise and tailoring it to your specific circumstances, they can devise a personalized plan to help you attain your unique objectives.
Taking charge of your financial, estate, and asset protection planning is crucial for peace of mind.
We can help you take control of your own asset protection planning.
Call for a legal consultation from an asset protection lawyer at (888) 773- 9399
By: Brian T. Bradley, Esq.
