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ARTICLE · 02 JULY 1996

Barbados International Trust Act

BarbadosEnvironment
An established feature of the English Legal system is that Trusts can only be one of two types namely a Private Trust or a Trust for Charitable purposes. Many offshore financial jurisdictions, Barbados included, have added another arm to their Trust law by making provision for the Non-Charitable Purpose Trusts in recently enacted International Trust Legislation.

With this enactment it is no longer necessary for draftsmen to undergo the legal and mental gymnastics that their predecessors faced daily as they tried to ensure that these Purpose Trusts were upheld as a valid charitable trust. Indeed the line between what was upheld as a valid Purpose Trust and what was not, became so blurred that legal luminaries were forced to resort to statements of explanation such as "occasions when Homer has nodded," in trying to explain why one Trust had been upheld and another failed.

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