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.