Flexibility In Bermuda Trusts Afforded By Section 47

What is Section 47

Section 47 of Bermuda's Trustee Act 1975 provides trustees of Bermuda trusts with a very useful and flexible tool for varying trusts in the absence of the necessary power either in the trust instrument or otherwise under the relevant legislation. Trusts not governed by Bermuda law can be migrated to Bermuda to take advantage of section 47 and, in such cases, it may be desirable to appoint new trustees in Bermuda.

Bermuda's section 47 is a hybrid of two English provisions being section 57 of the Trustee Act 1925 and section 64 of the Settled Land Act 1926, but without the English limitation to administrative matters. As such, both beneficial and administrative provisions of a trust may be changed under this provision. While England and Wales also have the Variation of Trusts Act 1958, which contains no limitation as to what may be amended, any such amendment requires the consent of all capable beneficiaries, as well as benefit for other