Bermuda trusts
Produced in partnership with Vanessa Lovell Schrum and Caljonah Smith of Appleby, Bermuda
Bermuda trusts

The following Private Client practice note produced in partnership with Vanessa Lovell Schrum and Caljonah Smith of Appleby, Bermuda provides comprehensive and up to date legal information covering:

  • Bermuda trusts
  • Bermuda’s trust legislation
  • Who can serve as trustee?
  • Private Trust Companies (PTCs)
  • Can there be a managing or custodian trustee?
  • Delegation and sub-delegation
  • Trust variation and restructuring
  • Power of advancement
  • Court’s power to authorise transactions
  • Court’s powers to set aside flawed fiduciary decisions—statutory Hastings Bass
  • More...

This Practice Note outlines Bermuda trust law and focuses upon its unique features and recent reforms, such as Bermuda's regime for private trust companies (PTCs) and trust restructuring. Reforms have included the introduction of substantive reserved powers legislation and statutory Hastings Bass, a more streamlined process in extending the trust period of a Bermuda law trust, together with amendments that have impacted to varying degrees the regulatory, record-keeping and filing obligations for PTCs and the regulation of charitable trust structures governed by Bermuda law.

Persons considering Bermuda trusts for estate planning or commercial purposes increasingly combine the use of Bermuda trusts with insurance products and Bermuda’s unique regime for investment funds.

Bermuda’s trust legislation

Bermuda’s primary trust legislation consists of:

  1. Trustee Act 1975 (TA 1975) which sets out the trustee’s and court’s powers and the trustee’s entitlements and duties

  1. Trusts (Special Provisions) Act 1989 (TSPA 1989) which sets out Bermuda’s reserved powers provisions and its firewall and purpose trust provisions

  2. Perpetuities and Accumulations Act 2009 (Bermuda) (PA 2009) which provides that trusts established on or after 1 August 2009 may have an unlimited duration insofar as they do not hold Bermuda land

  3. Trusts (Regulation of Trust Business) Act 2001 which provides for the licensing of persons carrying on a trust business in Bermuda. The Trusts (Regulation of Trust Business) Exemption Order 2002 made under this Act includes exemptions

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