The Bahamas International Trust: 2025 Playbook for Asset-Protection, Succession & Family Governance
Three decades of progressive legislation have made The Bahamas a first-call jurisdiction for families who want iron-clad protection without sacrificing control.
Why Choose The Bahamas?
Since the 1990s Nassau has built a comprehensive “tool-kit” of statutes—the Trustee Act 1998 (as amended), Fraudulent Dispositions Act 1991, Trusts (Choice of Governing Law) Act 1989 and the Rule Against Perpetuities (Abolition) Act 2011—that together deliver:
- Perpetual duration – the 2011 abolition of the rule against perpetuities means today’s Bahamian trusts can last indefinitely, enabling true dynasty planning.
- Firewall protection – Bahamian courts will not recognise foreign forced-heirship or matrimonial claims against a Bahamas-governed trust.
- Creditor deterrence – creditors must prove “intent to defraud” and sue within two years of the transfer; the burden of proof rests entirely on the claimant.
- Reserved-powers flexibility – the settlor can legally retain or delegate investment, distribution, or amendment powers without jeopardising validity.
- Minimal government cost – only a one-time US $50 trust duty is payable on creation; there is no annual government levy.
Typical Use-Cases
Objective | Bahamas Trust Solution |
|---|---|
Shield against litigation | Firewall + two-year limitation thwart creditor “deep-pocket” fishing expeditions. |
Cross-border estate planning | Ignore forced-heirship rules; consolidate global assets under one governing law. |
Pre-immigration tax planning | Park appreciated assets before moving to a higher-tax on-shore domicile. |
Crypto & digital-asset custody | Hold wallets via underlying LLCs with institutional cold storage; appoint a digital-asset adviser. |
Family governance | Use a Protector or Bahamas Executive Entity to supervise trustees and manage succession. |
Core Legal Architecture
Feature | Statutory Position |
|---|---|
Protector role | Expressly recognised; wide veto/consent powers may be granted. |
Reserved powers | Settlor may retain investment, distribution, or appointment powers; trust cannot be set aside merely because such powers exist. |
Duration | Unlimited for trusts created ≥ 30 Dec 2011. |
Creditor challenges | Must sue within 2 years; burden of proof on creditor. |
Forced-heirship firewall | Foreign judgments based on heirship or divorce claims are unenforceable. |
Regulatory Requirements & Setup Timeline
Select parties – Settlor, beneficiaries, trustee(s) (at least one licensed Bahamas trust company), optional Protector.
Draft trust deed – include any reserved-powers or investment-adviser clauses.
Pay US $50 trust duty (revenue stamp).
Execute deed – no public registration is ordinarily required, preserving confidentiality.
Typical turnaround with SCGIBC: 3–5 business days once KYC is complete.
Ongoing Obligations
- KYC refresh & FATF compliance managed by the corporate trustee.
- Accounting records must be kept but are not filed publicly.
- Event-driven updates – changes of trustee, Protector, or governing law require deed amendments but no government filing.
SCGIBC’s administration team handles all statutory and regulatory upkeep so clients remain passive unless action is needed.
Frequently Asked Questions
Can I be both settlor and beneficiary?
Yes—self-settled discretionary trusts are valid, but proper drafting is essential to avoid “retention-of-control” arguments.
Are Bahamian trusts tax-free?
The Bahamas imposes no income, capital-gains, estate, or withholding taxes on non-resident trusts. Always confirm treatment in your home jurisdiction.
What about crypto wallets?
Trustees will normally hold token titles through an underlying LLC with a regulated custodian; SCGIBC works with tier-one vault providers.
Can an existing Cayman or BVI trust migrate to The Bahamas?
Absolutely, Bahamian law permits a change of governing law by trustee resolution and re-stamping in Nassau.
How SCGIBC Adds Value
Phase | SCGIBC Deliverable |
|---|---|
Design | Jurisdictional comparison, asset-flow mapping, reserved-powers strategy. |
Formation | Bespoke deed, Protector agreement, stamping, KYC onboarding, digital copies in 72 hrs. |
Banking | White-glove introductions to Bahamas, Swiss, and U.S. private banks comfortable with trust structures. |
Lifecycle administration | Trustee minutes, asset transfers, FATCA/CRS reporting, annual accounts, Protector interface. |
Strategic reviews | Tax-law change alerts and trust “health-check” every three years. |
Next Steps
Ready to future-proof family wealth with a Bahamas International Trust?
Contact SCGIBC’s at contact@scgibc.com for a confidential consultation and fixed-fee proposal.
Disclaimer: This article is for information only and does not constitute legal or tax advice. Obtain professional counsel in all relevant jurisdictions before acting.
