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Bahamas Trustee Act: key features and rules
The Bahamas Trustee Act is the core of Bahamian trust law, with later reforms on foundations, purpose trusts, perpetuities and creditors. This page lists the rules the source describes, with its source and date, and your lawyer confirms how each applies to your deed.
Reviewed by a senior trust administrator, updated
The legal frame at a glance
What the law provides, with the source number for each item.
Key facts
- Trust structure
- Foundations Act 2004 and Purpose Trust Act 2004 widened the options[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]
- Reserved settlor powers
- Settlors can exercise reserved powers under Bahamian law[1]
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 trustee holds the assets and acts within the terms of the deed.
- A settlor can exercise reserved powers if the deed provides for them.
- A foundation or purpose trust is an alternative to an ordinary trust.
- A protector, if the deed creates one, can be asked to consent to key decisions.
The governing law
The Trustee Act 1998 is the foundation of trust administration in the Bahamas. It sets out what a trustee may do and what beneficiaries can expect (source: Bahamas Financial Services Board via Legal 500).
Reforms followed. In 2004 the Foundations Act and the Purpose Trust Act widened the options, and the 2011 reforms removed outdated constraints.
The Ministry of Economic Affairs publishes a copy of the Trustee Act. This page follows the article above and marks every point for lawyer review.
The deed names its governing law. Your lawyer decides with you whether that law should be Bahamian law or another.
Who may act as trustee
The trustee must follow the deed and the duties the law sets. Whether a trustee must be a particular type of company is a point your lawyer confirms for your case, and your lawyer confirms it before any deed is signed.
We name the Bahamian trustee company in writing before you sign. Our part is the checks, the papers and the contact with your lawyer.
You can choose people for other roles. A protector, an investment adviser or a co-trustee elsewhere may be possible, subject to the deed and to advice from a Bahamian law firm.
Features the law allows
The points below are drafting choices your lawyer may consider. Each one is a tool, not a result we promise.
| Provision | Topic |
|---|---|
| 1998 Act | What trustees may do, and beneficiary rights |
| Foundations Act 2004 | Foundation as an alternative to a trust |
| Purpose Trust Act 2004 | Trust for a stated purpose |
| Rule Against Perpetuities (Abolition) Act | Part of the 2011 reforms |
| Fraudulent Dispositions Act 1991 | Two-year limitation for challenges |
Source: Bahamas Financial Services Board via Legal 500, The Bahamas Toolkit (15 December 2025); accessed 2026-11-05. Topics only; your lawyer confirms how each Act applies to your deed.
Settlors can exercise reserved powers, so a deed can leave some decisions with the settlor. Your lawyer checks how much control you can keep without weakening the arrangement.
The 2011 reforms include the Rule Against Perpetuities (Abolition) Act. Your lawyer confirms which trusts it covers, and from what date.
The Fraudulent Dispositions Act 1991 introduced a two-year limitation for asset protection trusts. How it applies to a particular transfer depends on dates and facts, which your lawyer reviews.
Limits and requirements
Each of these Acts has conditions, and a structure that ignores them can fail. For a Bahamas structure, counsel looks first at dates, at reserved powers and at the form chosen.
- Timing of transfers. The two-year limitation in the Fraudulent Dispositions Act 1991 runs from dates, so counsel fixes the date of each transfer first.
- Your home courts. A court in your own country may weigh the Bahamian rules differently from a Bahamian court.
- Retained control. Reserved powers are allowed, but too many can lead a court to treat the assets as still yours.
- Records and conduct. The trustee keeps minutes of its decisions, and for a foundation the council does the same.
- Scope of each Act. The source gives headlines only, so the detail of each Act is not shown here.
No Bahamian Act makes assets untouchable, and we do not describe any structure that way. Outcomes depend on the facts of each case and on courts we do not control.
The formation steps and documents show where these checks happen during set-up.
Sources and review dates
Every point on this page comes from one article by the Bahamas Financial Services Board, republished by Legal 500 in December 2025.
Every statute named here carries a source and a review date.
Practical questions about running the trust are on our plain-answers page. For the overview, return to the main Bahamas guide.
For what each part costs, see the breakdown of set-up and yearly charges. Our page on wealth structuring and asset protection explains our approach in general.
Frequently asked questions
Which law governs a trust in the Bahamas?
The 1998 Act sets trustee powers and beneficiary rights, with later Acts on foundations, purpose trusts and perpetuities. The deed names its governing law, and that choice is written into the deed itself. Your lawyer confirms how they apply to your deed.
Who may act as trustee in the Bahamas?
Whether the law limits the role to a certain kind of company is a point your lawyer confirms before any deed is signed. A trust company in the Bahamas holds office as trustee, and we name it in writing before you sign any papers.
Can a trust in the Bahamas have a protector?
Yes, the deed can create the role and set its powers, such as consenting to distributions or replacing the trustee. Your lawyer advises who holds it, since a protector tied closely to the settlor can weaken the structure. The deed should also say who replaces the protector if that person steps down.