2. Sources Of Law

A. Foundations

The Anguilla Foundation Act (AFA) makes provision for the establishment of private foundations (a civil law concept) as an alternative to the existing common law trust available in Anguilla.

B. Trust Creation And Administration

Anguillian trust law is derived from the general principles of English trust law and from the Trusts Act (TA). Anguilla is not a party to the Hague Convention on the Law Applicable to Trusts and on their Recognition, 1 July 1985.

The Trust Companies and Offshore Banking Act regulates the carrying on of ‘trust business’ by trust companies in or from within Anguilla. A licence may be granted to a general trust company to carry on general trust business, or to a private trust company to carry on restricted trust business on behalf of specified persons.

C. Property, Estate And Probate

The Wills Act is based on the unamended English Wills Act of 1837 and governs the formal and essential validity of a will disposing of immovable property in Anguilla, or movable property of a testator domiciled at death in Anguilla. A testator has unrestricted freedom to dispose of property by will. The Intestates Estates Act governs administration and distribution of estates of persons dying intestate.

The English Non-Contentious Probate Rules 1987 apply in Anguilla and provide for applications for grants of probate or letters of administration with respect to assets located in Anguilla. Under the Probates (Resealing) Act, grants issued in the United Kingdom, by Commonwealth courts or by British courts in foreign countries, may be resealed by the Anguillian court.

The International Business Companies Act includes a provision to the effect that the situs of the ownership of shares, debt obligations or other securities of companies incorporated under that Act is in Anguilla.

D. Taxation

Anguilla has no income, capital gains, wealth, withholding, gift or inheritance taxes. Nonetheless, ‘exempt trusts’ are legislatively excluded from such taxes and from distributions tax and estate duty. An exempt trust is one where neither the settlor nor any of the beneficiaries are resident in Anguilla and where trust property does not include any land in Anguilla or the shares of any company beneficially owning such land.


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