Trusts (Special Provisions) Amendment Act 2014

Bermuda's Trusts (Special Provisions) Amendment Act 2014 (Amendment Act 2014), now operative, provides clarity and certainty to the powers which can be reserved by settlors or granted to third parties over a trust.

Whereas section 2(3) of the Trusts (Special Provisions) Act 1989 (1989 Act) includes a general provision which allows settlors to reserve a wide variety of powers over a trust, the Amendment Act 2014 adds certainty by including specific provisions which enable settlors to reserve or grant an extensive range of powers while retaining the legal validity of the trust.

Reserved or Granted Powers

The 1989 Act is amended by (i) clarifying that the general provision on the reservation of settlors' rights and powers pursuant to section 2(3) also extends to the grant by the Settlor of such rights and powers to other persons and by (ii) inserting a new section 2A which provides that the reservation by the Settlor to himself or grant to any other person in a