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Bermuda trusts law: key features and rules
Bermuda trusts law combines the Trustee Act 1975, updated in 2025, with a 1989 statute for purpose trusts and settlor powers. This page sets out the rules, 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
- Perpetuity period
- Perpetuities and Accumulations Act 2009: no perpetuity period for new trusts[3]
- Reserved settlor powers
- Trusts (Special Provisions) Act 1989: reserved powers added by 2014 amendment[2]
- Perpetuity period
- Perpetuities and Accumulations Act 2009: no perpetuity period for new trusts[3]
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
- states the purpose and transfers assetsTrusteeHolds the assets and manages them under the trust deed
- applies assets toTrust purposeThe stated purpose the trust serves, in place of beneficiaries
- Enforcer can enforce the purposeEnforcerCan hold the trustee to the terms of the trust
- 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 |
| Enforcer | Can hold the trustee to the terms of the trust |
| Trust purpose | The stated purpose the trust serves, in place of beneficiaries |
| Trust assets | The property held in the structure |
- A purpose trust has an enforcer instead of beneficiaries.
- The trustee holds the assets and acts within the terms of the deed.
- A protector, if the deed creates one, can be asked to consent to key decisions.
- A private trust company can act as trustee for a single family.
The governing law
Two statutes carry most of the weight. The 1975 Act sets the duties and powers of a trustee. The 1989 statute deals with governing law, settlor powers and purpose trusts.
The Trustee Amendment Act 2025 came into force on 10 October 2025 and updated the trustee’s investment powers (source: Carey Olsen via Legal 500).
The Bermuda Laws Online site publishes the 1989 statute and the 2009 Perpetuities Act. Each point from them cites its source in the facts table.
The deed names its governing law. Your lawyer decides with you whether that law should be Bermuda 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. Your lawyer confirms it before any deed is signed.
A family can also set up its own trustee company, which adds its own papers and yearly work. Your lawyer explains whether that suits your family.
A trust company in Bermuda holds office as trustee, and we name it in writing before you sign.
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 |
|---|---|
| Trustee Amendment Act 2025 | Trustee investment powers updated |
| 1989 statute | Settlor powers (2014 amendment), purpose trusts |
| Perpetuities and Accumulations Act 2009 | No perpetuity period for new trusts |
Source: Carey Olsen via Legal 500 (2025); Bermuda Laws Online (1989 and 2009 Acts); accessed 2026-11-05.
A settlor may keep certain powers without making the trust invalid. The 2014 amendment to the 1989 statute adds that. Your lawyer confirms how it applies to your deed.
A purpose trust holds assets for a stated purpose. Bermuda private trust companies can be owned through one, and the deed names an enforcer.
The 2009 Act removes the perpetuity period for trusts made after its start date. Your lawyer confirms how it applies to your deed.
Limits and requirements
A Bermuda structure has limits, and these are the points your lawyer checks first.
- Land. Whether a purpose trust may hold Bermuda land is a point your lawyer confirms.
- Enforcer. A purpose trust has no beneficiary to hold the trustee to its purpose, so the deed names an enforcer.
- Perpetuity. The 2009 Act removes the period for new trusts. Your lawyer confirms how it applies to older trusts.
- Settlor powers. Reserved powers under the 1989 Act have limits, and your lawyer confirms how far they go.
- Family trustee company. A private trust company adds its own board, accounts and yearly work, which your lawyer sets out for your family.
- Timing. A transfer made when a claim is already expected is the first thing counsel examines.
- Home country. The courts where you live apply their own rules to assets you control, whatever Bermuda law says.
- Conduct. The trustee acts on the deed in practice, with minutes of each decision.
No trust makes assets untouchable. Bermuda law gives your lawyer rules to work with, while facts and courts decide the outcome.
The formation steps and documents show where these checks happen during set-up.
Sources and review dates
The 2025 Act point comes from a Carey Olsen article (via Legal 500, 2025). The 1989 and 2009 Acts are from Bermuda Laws Online.
Every legal point carries a source and a date.
Running the trust day to day is covered on our plain-answers page, and the main Bermuda guide gives the overview.
The comparison page sets Bermuda beside Cayman. Our page on wealth structuring and asset protection explains our approach in general.
Frequently asked questions
Which law governs a trust in Bermuda?
The Trustee Act 1975, as amended in 2025, sets the general duties of a trustee. The 1989 statute adds rules on settlor powers and purpose trusts. Your lawyer confirms how they apply to your deed, and the deed names the law that governs your trust.
Who may act as trustee in Bermuda?
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 Bermuda holds office as trustee, and we say which one in writing before you sign.
Can a trust in Bermuda 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.
Sources
- Carey Olsen via Legal 500: The Trustee Amendment Act 2025, Bermuda (2025), read 2026-11-05.
- Bermuda Laws Online: Trusts (Special Provisions) Act (1989), read 2026-11-05.
- Bermuda Laws Online: Perpetuities and Accumulations Act (2009), read 2026-11-05.