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Bahamas trust: how it works and how to set one up
A Bahamas trust is a trust governed by Bahamian law, where a trustee holds assets for the beneficiaries a deed names. The Bahamas also offers foundations and purpose trusts. We run the checks and coordinate the papers, and your own lawyer confirms the structure for your country.
Reviewed by a senior trust administrator, updated
Key facts
- Trust structure
- Foundations Act 2004 and Purpose Trust Act 2004 widened the options[1]
- Governing law
- Trustee Act 1998 sets trustee powers and beneficiary rights[1]
- Perpetuity period
- 2011 reforms include the Rule Against Perpetuities (Abolition) Act[1]
- Asset protection rule
- Fraudulent Dispositions Act 1991: two-year limitation for asset protection trusts[1]
- Registration
- Beneficial Ownership Act in force 20 December 2018; agents hold company data[2]
Numbers in brackets point to the Sources list at the end of this page.
Swipe sideways to see the whole diagram.
- SettlorSets up the structure and transfers assets into it
- transfers assets under a trust deedTrusteeHolds the assets and manages them under the trust deed
- holds and distributesBeneficiariesPeople who benefit from the trust under its terms
- Trustee holds legal titleTrust assetsThe property held in the structure
Roles and notes
| Part of the structure | What it does |
|---|---|
| Settlor | Sets up the structure and transfers assets into it |
| Trustee | Holds the assets and manages them under the trust deed |
| Beneficiaries | People who benefit from the trust under its terms |
| Trust assets | The property held in the structure |
- The settlor transfers assets to the trustee under a written deed.
- The trustee holds the assets and decides under the deed.
- Beneficiaries are named or described in the deed.
- A foundation or purpose trust can serve as an alternative to an ordinary trust.
What a trust in the Bahamas is
It is a trust governed by Bahamian law. You transfer assets to a trustee, and the trustee holds them for the people the deed names or describes.
Many deeds are discretionary, so the trustee decides on distributions within the deed and your letter of wishes.
The Bahamas offers three forms, a trust, a foundation and a purpose trust, and the parts differ in each:
- In a trust, the settlor transfers assets, the trustee holds them and decides under the deed, and beneficiaries may receive distributions.
- A settlor can keep reserved powers in a trust, and your lawyer confirms how far they go for your deed.
- A foundation under the Foundations Act 2004 is a separate option with a council in place of a trustee.
- A purpose trust under the Purpose Trust Act 2004 is set up for a purpose, and your lawyer explains who oversees it.
- A Bahamas company below the structure keeps its beneficial ownership data with its registered agent.
The Trustee Act 1998 laid the foundation for trust administration, defining trustee powers and beneficiary rights (source: Bahamas Financial Services Board via Legal 500).
In 2004 the Foundations Act and the Purpose Trust Act widened the options.
The legal features page lists the rules, with their sources and dates.
Who a trust in the Bahamas suits
The Bahamas offers three forms, so the first question is which one fits your goal.
The choice usually turns on these points:
- You want a trustee to hold the assets and decide on distributions, which a trust provides.
- You want a council in place of a trustee, which points to a foundation.
- You want the assets to serve a stated purpose, which points to a purpose trust.
- You want to keep reserved powers, and need to know how far your deed lets you go.
A trust is not the right tool for every goal. The first review may show that another place or another tool suits you better.
Our guide to wealth structuring explains how we approach that choice in general.
What the trustee does
The trustee legally holds the assets and must follow the deed. It keeps accounts and records, decides on distributions and signs the papers that move assets.
A Bahamian trustee company holds office, and we are your contact. Our part is the identity checks, the papers and the preparation with your lawyer. The trustee takes the decisions.
The split shows when a beneficiary or protector changes. You send us the request, we prepare the papers, and the trustee decides under the deed.
Your letter of wishes sits beside the deed and tells the trustee what you hope for. It does not bind the trustee, so update it as your family changes.
Documents and steps to start
For a Bahamas structure the order is fixed. Nothing is signed until your lawyer has reviewed the deed and the trustee has confirmed it will act.
- Enquiry, then identity checks.
- Choice between a trust, a foundation and a purpose trust, made with your lawyer.
- Drafting of the deed, any reserved powers and your letter of wishes.
- Signing and acceptance by the trustee.
- Transfer of assets, with the registered agent holding the ownership data of any Bahamas company in the structure.
We first ask for identity documents, evidence of the source of funds and wealth, and beneficiary details. After that, timing depends on others: your lawyer, the trustee, the registered agent and the bank.
You get a checklist and a list of open items, not a promised date. An unanswered bank question can hold up the transfer.
The step-by-step guide lists the documents in more detail, and the cost page explains what shapes the price.
Cost, tax and reporting in outline
The cost follows the size and shape of the structure more than the place. We publish the set-up fee for a standard trust or foundation; annual administration, event-based work and third-party charges are quoted after we review your case.
Every figure in a quote comes from the written terms of the trustee and the law firm.
Tax follows the people, not only the trust. Your home country decides how it treats you as settlor or beneficiary, so your own tax adviser tells you what to file.
Companies in the Bahamas report beneficial ownership to their registered agent. The Attorney General searches that data through a secure system, and the Beneficial Ownership Act came into force on 20 December 2018 (source: Trident Trust).
Your lawyer confirms whether a trust itself falls within that Act. We do not promise any tax outcome.
Facts we reviewed, with source and date
| Topic | What the source says |
|---|---|
| Trustee Act | Trustee Act 1998 sets trustee powers and beneficiary rights |
| Perpetuities | The 2011 reforms include the Rule Against Perpetuities (Abolition) Act |
| Creditors | Fraudulent Dispositions Act 1991 has a two-year limitation |
| Beneficial ownership | Act of 2018, in force 20 December 2018 |
Basis: Bahamas Financial Services Board via Legal 500, The Bahamas Toolkit (15 December 2025), and Trident Trust (22 August 2019); accessed 2026-11-05.
Your lawyer in the Bahamas confirms how each point applies to your deed. Short answers to common questions sit on the plain-answers page.
Frequently asked questions
Who can set up a trust in the Bahamas?
Whether the structure suits you depends on your home country and tax position, which your own lawyer and tax adviser confirm before anything is signed. Tell us your country of residence in your first message. We send your lawyer and tax adviser the same drafts we send you.
How do I start in the Bahamas?
Write to us with your country of residence, the assets you expect to transfer and what the trust is for. We reply with what we need, then begin with identity and source-of-funds papers. Nothing is signed until your lawyer has reviewed the deed.
Who can help me start in the Bahamas?
You need a lawyer in the Bahamas to review the deed, and a trustee that will act. We are your single contact and bring both together, and your own lawyer and tax adviser at home see the same drafts we send you.
Is there a time limit on a Bahamas trust?
The 2011 reforms include the Rule Against Perpetuities (Abolition) Act. Your lawyer confirms how it applies to your deed, including which trusts it covers and from what date. The deed should state the intended duration so that the trustee and the bank read it the same way.
Can a Bahamas trust protect assets from creditors?
The Fraudulent Dispositions Act 1991 sets a two-year limitation for challenges to asset protection trusts. Whether it helps in a given case depends on timing and facts, which only your lawyer can judge. We make no promise of an outcome.