Thinking out of the box with the Executive Entity Act

open-box

Due to the recently implemented Bahamian Executive Entity Act, financial service providers have the ability to act in the capacity of Trustee, Protector, Investment Advisor and or Appointor for existing and new trusts under consideration.  Section 2. of the Bahamas Executive Entity Act provides for the functions following:

  • Any powers and duties of an executive, administrative, supervisory, fiduciary and office holding nature including but not limited to the powers and duties of:-

(I)        an enforcer, protector, trustee, investment advisor and holder of any other office                of any trust

(II)       the holder of any office of any legal person

  • The ownership, management, and holding of:-

(I)        executive entity assets; and

(II)       trust assets

The use of an Executive Entity is most apparent when clients have decided to transfer trusteeship from one service provider to another and an interim trustee is required to facilitate the transfer.

If a trustee is removed or retired by Deed of Removal/Retirement and Appointment, the Executive Entity is able to be appointed as interim trustee.  This allows the Settlor/Donor the ability to discern and appoint a successor trustee at their convenience.

If the Executive Entity is also a Corporate Service Provider, arguably the Executive Entity is possible of providing the same level of service offered by trust companies and where feasible, maintain the same investments and  bank accounts that were previously managed by the successor trustee.

The Executive Entity Act is a fantastic fiduciary tool that provides flexibility when formulating custom solutions.

On the Asset Protection Trust of the first part…

“The Asset Protection Trust”

The Irrevocable Protection Trust

Asset Protection Trusts have long been upheld as the gold standard for succession planning. To this day, this form of instrument remains the preferred choice among modern wealth planners.Consequently, copious amounts of jurisprudence exists in support of every conceivable client concern. The key features of this robust and dynamic form of trust include: its flexibility, its discretionary nature and its capacity to endure perpetually. The asset protection trust is always the best place to start when discerning succession planning needs.

More on this soon, in particular the use of an APT with an I.B.C.