Remember learning about the Boston Tea party in history class and the rallying cry, "no taxation without representation"?

Parents in Bermuda often transferred real estate to their children during their lifetime in order to avoid the payment of stamp duty by children, often referred to as a death tax.

Stamp duty in Bermuda is a tax applied to documents, known as "instruments" under the tax. Any instrument signed in, or brought into, Bermuda is potentially liable to stamp duty, unless specifically exempt.

In each case, they are restricted to purchases of fractionals, tourist accommodation/hotel residences and higher-end residences/condominiums.

A discussion on the issues of estate and gift-tax planning in Bermuda.