Bermuda Simplifies And Enhances "firewall Legislation"

The Bermuda legislature has recently passed the Trusts (Special Provisions) Amendment Act 2020 (Amendment Act) which amends Bermuda's "firewall" legislation contained in the Trusts (Special Provisions) Act 1989. This law reform follows an initiative of the Bermuda Trust Law Reform Committee with the benefit of advice from David Brownbill QC and Andrew Holden (each of XXIV Old Buildings, Lincoln's Inn, London). This reform will help ensure that settlors and families have greater certainty that their objectives will be met and trust assets protected. The Amendment Act became operative on 5 August 2020.

The purpose of Bermuda's firewall legislation is to:

1. provide a system for the application of Bermuda trust law to certain key questions relating to the validity of transfers into, and the operation of, trusts in the jurisdiction (by modifying general choice of law rules to ensure that foreign law is not applied to questions affecting Bermuda trusts); and