private client & trusts, Bermuda
Bermuda has had a thriving trusts industry for the past fifty years and has developed a formidable reputation as being one of the premier offshore jurisdictions in which to develop trust structures. Appleby’s experienced Private Client & Trust lawyers in Bermuda frequently advise trust companies, international private banks and private individuals on the creation, variation and termination of trusts and other structures. They also assist trustees, beneficiaries and protectors/enforcers in modifying existing structures or resolving contentious issues.
Our Bermuda team is ranked in the top tier and highly recommended for private client work by PLC Which Lawyer 2010. Our lawyers regularly chair and speak at conferences locally and internationally, and prepare articles for a number of organisations, including the Society of Trust & Estate Practitioners (STEP) and the Bermuda Bar Association.
Continuing legal developments have updated Bermuda’s trusts offering to ensure it remains a leading international trust jurisdiction. In particular, Bermuda has been at the forefront in the creation of the purpose trust, which has resulted in a significant rise in the application of trusts in the commercial context, used as part of sophisticated international planning exercises.
Additionally, we have seen an increased use of trusts by the insurance industry. Insurance policies are being bought by people concerned about political risk, forced heirship, or who have other family financial reasons. US citizens who buy trust-owned policies meeting US tax requirements can achieve considerable tax benefits, especially when the policy is issued by a company with segregated accounts. To help create these opportunities, the Appleby team in Bermuda:
- Manages master trusts that are created by international life and annuity companies to characterise US dollar-denominated policies sold in non-US markets as investment products rather than insurance
- Creates trusts to hold individual policies, thus further anchoring the insurance policies in Bermuda
An extensive system of trust licensing, regulated by the Bermuda Monetary Authority, has tightened up the requirements for trustees to be licensed and, in particular, requires that all public trust companies possess an unlimited trust licence.
Appleby Services (Bermuda) Ltd. is licensed to conduct Private Client & Trust management and administration services business by the Bermuda Monetary Authority. Appleby Management (Bermuda) Ltd also provides Employee Benefit Trust services.