Bahamas is a global powerhouse in the continuing growth of the financial industry. It is a small paradise island with a big reputation for wealth management. It’s expertise in confidentiality, professionalism, tax and investment management makes it the number one choice for investors. Bahamas’ financial industry also offers a wide range of services of investment including trust and inheritance.
The trust law in Bahamas proves to have a good history in terms of administration. The newly revised law maintains its good track record while being versatile enough to keep abreast with the times. Bahamas’ trust law which started as the Bahamian Trustee Act in 1983 is based on the English common law. It is continuously repealed to serve more advantageous purposes for the client.
The Trusts (Choice Governing Law) amended in 1989, serves to protect assets from forced claims and foreign judgment. The Fraudulent Dispositions Act 1991 protects the assets from creditors who stake their claim for two years. They have to prove that the settlor is fraudulent first before they could take advantage of the assets. The Trustee Act amended in 1998 is an update to the Bahamian Trust Law.
Some of the key provisions are:
a) Grants powers to settlors without compromising the validity of the trust; b) The role of protector is acknowledged; c) And provides exemption from taxes, registration (except for the protection of property in Bahamas), and regulations on exchange control for non-residents.
The most recent addition to the Bahamian Trust Law is the Purpose Trust Bill 2004. This serves to focus the benefits of the trust on its purpose rather than on the person and entity. This gives the chance for the settlor and the members of his family to establish a private trust company. The Bahamian trust law serves a wide array of purposes which makes it a versatile, multi-dimensional entity—a big feat for a rather small country.
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