Bahamas Trusts
Bahamas Trust Law
Bahamian trust law is based on English common law, and the Bahamian Trustee Act 1893. Later legislation includes The Trust (Choice of Governing Law) Act 1989, the Fraudulent Dispositions Act 1991 and the Trustee Act 1998, which repeals the Trustee Act 1983 and the Variation of Trusts Act 1983.
The Trust (Choice of Governing Law) Act 1989 gives protection to Bahamian trusts and their settlors in civil law countries against forced inheritance claims. The Act makes Bahamian law the proper law of a trust if the deed so declares, and makes the trust immune to foreign judgements.
The Fraudulent Dispositions Act 1991 establishes a 2-year limitation period for creditors' attacks on asset protection trusts; the attacker has to prove fraud against the settlor.
The Trustee Act 1998 is an important piece of legislation which updates Bahamian trust law on many fronts. Some of the more important provisions are as follows:- A settlor can retain a wide range of powers without falling foul of 'sham' trust legislation;
- Trustees are given wide statutory investment and management powers unless the trust deed negates them
- Trustees' indemnities are recited in the statute
- A wide range of trust purposes are encompassed, including accumulation trusts
- The role of Protector is recognised
- There are extensive disclosure provisions
- Exemption from all taxes and from stamp duty (an initial $50 stamp is required on all trust deeds)
- Exemption from registration except where an interest in Bahamian property is to be protected
- Exemption from exchange control regulations for non-resident beneficiaries
For more information on offshore trusts click on the link or call us on +353 1 431 9663
