Succession planning in the British Virgin Islands

Anyone holding assets in the British Virgin Islands, such as company shares or investments, should consider preparing a will or undertaking broader succession planning in respect of those assets.

This briefing sets out the options available to protect your BVI assets and support succession planning across generations. 

Jointly-held assets 

As in other common law jurisdictions, assets in the BVI, such as shares, may be held either as "joint tenants" or as "tenants in common". 

• Joint tenants benefit from survivorship, where their share is passed automatically to the surviving owner(s) on death. If not carefully considered this arrangement can override the provisions of a will - it can also serve as a way of avoiding the probate process, especially if the intention is for the joint share to pass to the surviving owner(s).
  
  
• In contrast, when a share is held as tenant in common, each person's share forms part of their estate and passes in accordance with their will, giving the individual greater control over who inherits their share.

This distinction is commonly overlooked and can have a significant impact on succession planning, so it is essential to check how assets are held. 

Preparing a will

Preparing a will that directly addresses assets held in the BVI is an important first step towards ensuring clarity and efficiency in succession planning.  

The preparation of a BVI will requires careful attention, particularly for individuals who are not domiciled in the jurisdiction, as cross-border estate planning can present complexities when BVI law interacts with the succession laws of other countries. 

This is key because, under BVI’s private international law, the law of the country where the deceased was domiciled at the time of death usually governs the succession of "movable" assets – including shares in BVI companies. It is therefore essential to review the terms of a BVI will alongside the relevant laws of domicile to identify and resolve any potential conflicts and ensure the smooth administration of the estate. Read more on making a will in the British Virgin Islands. 

Lifetime planning  

Lifetime planning provides greater certainty, flexibility and asset protection for the succession of BVI assets, helping to mitigate or avoid issues arising from conflicts of law, lengthy probate procedures or disparate tax regimes. 

A range of structuring options are available in the BVI.

• Trusts are highly flexible and may be tailored to a range of arrangements, including wealth management and investment structures. A variety of offices or control mechanisms, such as appointing protectors, enforcers or committees, can be incorporated to provide oversight or control in relation to key decisions. This offers added assurance to settlors that the administration of the trust will align with their wishes. Read more about British Virgin Islands trusts.
  
  
• Purpose Trusts can be established for people, purposes (charitable and non-charitable) or both. Non-charitable purpose trusts must have an Enforcer, whose responsibility is to ensure the terms of the trust are properly enforced, thus separating the roles of ownership and oversight (and consequently limiting the power or information available to beneficiaries).
  
  
• VISTA Trusts are a distinctive feature of the BVI, designed to hold shares in BVI companies while restricting a trustee’s duty to intervene in company management. This allows the trustee to retain ownership without influencing daily operations, enabling directors to act freely. The VISTA regime is especially attractive to settlors seeking trust benefits without relinquishing control of company affairs. Read more about VISTA Trusts in the British Virgin Islands.

BVI law provides flexibility and protection across these structures. In particular: 

• settlors can retain significant control over trust arrangements by reserving powers or limited beneficial interests to themselves, other individuals or office holders such as protectors or protective committees, without affecting the validity or effectiveness of the trust
  
  
• strong firewall provisions ensure that all questions concerning BVI trusts, including their validity, construction, effect and administration, are determined exclusively under BVI law - this protects BVI trusts from challenges based on foreign matrimonial, civil partnership or forced heirship laws, and prevents the recognition or enforcement of related foreign judgments by BVI courts
  
  
• non-charitable trusts established after 15 May 2013 can have a perpetuity period of up to 360 years, supporting multi-generational succession planning

Probate considerations

Probate is generally required for BVI assets held directly by an individual at the time of death. However, if the assets are held within a structure and do not form part of the individual's estate, probate may not be necessary for those assets. 

If a grant of representation has already been issued by a court in a recognised jurisdiction, it may be resealed by the BVI High Court if specific requirements (including payment of stamp duty) are met, which gives it the same effect as if it had been granted by the BVI Court. Read more about obtaining a grant of representation in the BVI.

How Ogier can help 

Our Estate Planning, Wills and Probate team has extensive experience in advising on BVI law issues, from the preparation of wills and powers of attorney to applications for grants of probate and letters of administration. We are known for providing a responsive and compassionate service to clients and their advisers and for our expertise in cross-border estates where BVI assets are involved. 

For tailored advice on BVI succession planning, contact a member of our team using the contact details below. 

About Ogier

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Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

Regulatory information can be found under Legal Notice