Bermuda introduces unprecedented changes to legislation on settlor reserved powers
The reservation or grant of certain powers by settlors has always been possible under Bermuda’s trust legislation, but historically there has been some uncertainty about exactly how far settlors could go without calling the validity of the trust structure into question. The recently passed Trusts (Special Provisions) Amendment Act 2014 (the ‘Amendment Act’) now provides statutory clarity and certainty in this area.
Helpfully, the Amendment Act expressly lists certain interests and powers that can be retained by a settlor or granted to a third party, for example a protector or beneficiary, without prejudicing the validity of a trust. It also clarifies that the retention or grant of these powers and interests will not cause the property in the trust to become part of the settlor’s estate — introducing certainty in this area distinguishes Bermuda from some of the other major offshore jurisdictions.
The Amendment Act expressly states that any and all of the following interests or powers can be reserved by the settlor or granted to a third party…
Click on the link below to read the rest of the Conyers Dill & Pearman briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Conyers Dill & Pearman
Briefings from Conyers Dill & Pearman
A high-level summary of the major commercial cases decided in Bermuda, the British Virgin Islands and the Cayman Islands.
Shareholder relief: Eastern Caribbean Appeal Court considers the just and equitable grounds for winding up a BVI company
This briefing concerns Wang Zhongyong v Union Zone Management Ltd.