BAHAMAS Trends and Developments Contributed by: Sean Moree KC and Erin Hill, McKinney, Bancroft & Hughes
Introduction The Bahamian trust and private client sector contin - ues to evolve as the jurisdiction seeks to maintain its position as a leading international wealth manage - ment and financial centre, while responding to chang - ing client expectations, increased regulatory scrutiny and the growing complexity of cross-border fam - ily structures. Recent developments demonstrate a clear trend towards modernising the legal framework, expanding the range of wealth planning tools available to international families, and strengthening regulatory oversight and transparency. At the same time, The Bahamas continues to offer a low tax environment and a sophisticated legal and regulatory framework that is attractive to high net worth and ultra-high net worth individuals and families. Simply put, it’s still “Better in The Bahamas”. Trustee (Amendment) Act, 2025 The Trustee (Amendment) Act, 2025 represents an important development in Bahamian trust law. The amendments introduce and clarify the concept of a “power holder”, which broadly encompasses per - sons holding powers in relation to a trust, including powers of appointment, consent, direction, revoca - tion or variation, and powers to appoint or remove trustees or other power holders, expressly including protectors. This reflects the increasingly sophisticat - ed nature of modern trusts, where governance and control are often shared among trustees, protectors, family advisers and other persons exercising reserved powers. The amendments also expand the statutory framework for obtaining the court’s opinion, advice or direction in relation to the management or admin - istration of trust property or the assets of a testator or intestate. Importantly, applications may be made by trustees, personal representatives and power hold - ers, and proceedings may be heard in private. These reforms should provide greater certainty and flexibil - ity in addressing complex fiduciary and governance questions while preserving the confidentiality that is particularly valued by private clients. Usufruct Interest Act, 2026 The enactment of the Usufruct Interest Act, 2026 is another significant development. The legislation intro - duces the civil law concept of usufruct into Bahamian law, enabling the right to use and enjoy property to
be separated from underlying ownership. Broadly, the usufructuary may retain the right to use an asset and enjoy its fruits or economic benefits, while another per - son holds the bare ownership and ultimately obtains full ownership upon termination of the usufruct. This creates new possibilities for intergenerational wealth and succession planning; for example, a parent may be able to transfer underlying ownership of an asset to a child while retaining a lifetime right to use and enjoy the asset. The introduction of usufruct is particularly relevant to internationally mobile families and clients from civil law jurisdictions who are already familiar with the concept. It also gives advisers an additional tool for situations in which a client wishes to retain use or economic enjoyment of an asset while transferring the underlying ownership to the next generation. Private Trust Companies (PTCs) and Qualified Executive Entities (QEEs) The regulatory framework surrounding PTCs and QEEs has also developed. The Banks and Trust Companies (Private Trust Companies and Qualified Executive Entities) Regulations, 2025 were gazetted in September 2025, followed by Central Bank guid - ance addressing applications and the governance, risk management, operational and fiduciary stand - ards applicable to PTCs, QEEs and their registered representatives. This development is relevant to fami - lies seeking greater involvement in the governance and administration of their wealth while maintaining a professionally regulated framework. PTCs can provide families with greater continuity and involvement in the administration of family trusts, while QEEs can facili - tate the appointment of family members or trusted advisers to perform specified fiduciary or supervisory functions without necessarily requiring the establish - ment of a fully licensed public trust company. The regulatory development of these structures reflects the increasing importance of family governance, suc - cession planning and the professionalisation of family offices in the Bahamian private client market. International Transparency and Regulation The Bahamas’ private client sector continues to oper - ate within an increasingly stringent international trans - parency and regulatory environment. The jurisdiction has implemented the Common Reporting Standard (CRS), FATCA and a statutory beneficial ownership
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