Seychelles International Trust
Is trust property protected in the event of a settlor´s or a beneficiary’s bankruptcy?
The Seychelles International Trusts Act was designed to protect the assets held in trust, and to ensure trusts perform their intended asset protection purposes.
The law states that an international trust shall not be void or voidable in the event of or by reason of the settlor’s bankruptcy or liquidation of the settlor’s property in any action or proceedings.
The one exception to this rule is if the Seychelles Supreme Court finds that the trust was made with the specific intent to defraud persons who were creditors of the settlor or the settlors was insolvent at the time when the trust property was vested in the trustee. However, this is a difficult case for creditors to prove, as the Seychelles Supreme Court applies the heightened beyond a reasonable doubt burden of proof typically reserved for criminal trials.