Government recently passed an amendment to the trust laws.
The Trusts (Special Provisions) Amendment Act 2014 has the intent to make Bermuda more competitive in attracting trust business.
Alec Anderson, head of the Private Client and Trust group at Conyers, Dill & Pearman, acted as Chair of the BBDA Trust Law Reform Committee, the body which consulted on and drafted the new legislation.
He said: “We believe that the new legislation is world-class and we think that these legislative provisions will render Bermuda trusts more attractive to international settlors who we know ‘jurisdiction shop’ for the offshore location with the most flexible and protective legislative framework to base their trust structures.”
Mr Anderson said the new legislation lists certain interests and powers which can be retained by a ‘settlor’ — a person creating a trust — or granted to a third party, a trust protector or beneficiary, without invalidating the trust.
“It also clarifies that if the settlor retains certain interests or powers this will not cause the property in the trust to become part of the settlor’s estate.