Client Memorandum - Trusts

The passage of recent legislation by The Bahamas legislature seeks to further enhance the law relating to trusts, in the following manner: -

The Trust (Choice of Governing Law) Act, 1989 is expressly designed to confront issues over the jurisdiction and conflict of laws in relation to trusts; for example, the forced heirship provisions in civil law countries. The principal thrust of this Act is to make Bahamian Law the governing law of the trust if so expressly declared. Accordingly, all matters of interpretation and administration fall to be decided in accordance with the law of The Bahamas, and, further, such a trust may not be rendered void, voidable or be liable to be set aside or defective in any manner by reference to a foreign law. This Act also allows a trust to provide that its governing law may be changed, whether to or from The Bahamas.