The income of the trust is reported directly on the tax return of the current beneficiaries. Because it is a grantor trust, which is a trust in which the creator (or grantor) keeps some interest in the income and funds inside of the trust. It is not recognized as a separate taxable entity separate from the grantor for tax purposes. It is, thus, “Income Tax Neutral” to the grantor. So, the for tax purposes, it is equivalent to holding the funds in your name. From an asset protection standpoint, however, it is the difference between keeping and not keeping your own money. It can also pass real estate tax deductions and mortgage interest deductions to your personal tax return.

A General Trust Licence holder is an entity which holds a valid general trust licence as prescribed by the Banks and Trust Companies Act, 1990 and enables the holder to carry on trust business without restrictions. Trust business as defined by this Act means "the business of (a) acting as a professional trustee, protector or administrator of a trust or settlement, (b) managing or administering any trust or settlement, and (c) company management as defined by the Company Management Act, 1990.

A General Trust Licence holder is an entity which holds a valid general trust licence as prescribed by the Banks and Trust Companies Act, 1990 and enables the holder to carry on trust business without restrictions. Trust business as defined by this Act means "the business of (a) acting as a professional trustee, protector or administrator of a trust or settlement, (b) managing or administering any trust or settlement, and (c) company management as defined by the Company Management Act, 1990.

A Restricted Trust Licence holder is an entity which holds a valid restricted trust licence as prescribed by the Banks and Trust Companies Act, 1990 and allows the holder to carry on trust business with restrictions specifically providing trustee services to a

A registered agent as defined by the International Business Companies Act ("IBCA") means "the person who is at any particular time performing the functions of registered agent of a company incorporated under this Act pursuant to subsection (1) of section 39" (of the IBCA).

An Authorised Agent is a person designated by a trust company to act as an intermediary between the licence holder and the Commission.

A principle office is the office of the Company Manager or Trust Licence holder with a physical presence in the (British) Virgin Islands.

A Trust Company is a company that carries on trust business as defined in (2) above.