TURKS & CAICOS Law and Practice Contributed by: David Stewart, Thomas Bucknall and Gareth Bathgate, Coriats Trust Company Limited
2.4 Marital Property The basic starting point on marital property is similar to English law; dependent on the length of the mar - riage, property and wealth built after the date of mar - riage may be regarded as joint, subject to each party’s contribution to its creation. If the parties are properly advised, prenuptial agreements can have persuasive effect but are not legally binding. As always with mat - rimonial issues, we strongly recommend taking advice on the basis of the relevant specific facts. 2.5 Transfer of Property In the TCI, the transfer of property attracts a stamp duty which is payable to the government. However, there are exemptions, which are usually in these cat - egories: • transfers between associated bodies; and • transfers to the Crown or TCI government. 2.6 Transfer of Assets: Vehicle and Planning Mechanisms There are no applicable vehicles or planning mecha - nisms as there is no tax. 2.7 Transfer of Assets: Digital Assets • transfer for natural love and affection; • transfer to charitable organisation; The TCI currently does not have any laws or regula - tions for the operation of digital currency, though this is under consideration by the Regulator. 3. Trusts, Foundations and Similar Entities 3.1 Types of Trusts, Foundations or Similar Entities Under the 2016 Trust Ordinance, as amended, Turks and Caicos law provides for the full suite of VISTA trusts (those governed by Virgin Islands Special Trusts Act), private trust corporations, settlor-controlled trusts, special purpose trusts, revocable trusts, irrevo - cable trusts, unit trusts, and discretionary trusts. 3.2 Recognition of Trusts Trusts and trust law are well respected in the Turks and Caicos Islands, where English law cases have
persuasive effect, and the judiciary is well versed in trust law. 3.3 Tax Considerations: Fiduciary or Beneficiary Designation There are no Turks and Caicos tax issues arising from the service by a TCI resident as trustee of a foreign trust, or from a beneficiary or settlor of a foreign trust being resident in TCI. 3.4 Exercising Control Over Irrevocable Planning Vehicles There are various ways in which a settlor can retain control over trust assets. Asset protection is a strong driver for settling assets into a Turks and Caicos trust. Any creditor would need to allege and prove that any such settlement was undertaken whilst the settlor was, as a result of the transfer or at the time of the transfer, insolvent, and in any event any such claim would be statute barred four years after the date of settlement. 4.2 Succession Planning Trust and corporate structures are commonly used, with family governance charters and supervisory boards to regulate and resolve disputes. 4.3 Transfer of Partial Interest When a partial interest in an entity is transferred, during lifetime or at death, the fair market value of the interest for transfer tax purposes is adjusted to reflect a discount for lack of marketability and control, although the relevant stamp duty charge (as this is the only relevant tax in the Turks and Caicos Islands) heavily depends on the coherence and credibility of the supporting valuation report. 4. Family Business Planning 4.1 Asset Protection
5. Wealth Disputes 5.1 Trends Driving Disputes
Disputes with trustees are uncommon, but they do happen. Most family trust disputes are resolved
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