A new legal entity making it easier for family members to manage offshore trusts has been passed into law in the Bahamas, as proposed by international law firm Lawrence Graham.
The officers of Bahamas Executive Entities (BEEs) will benefit from limited liability, meaning that the trust’s founder’s family members and advisers, who may have been reluctant to take on a fiduciary role with personal liability, will be able to take up the positions.
Officers’ details will not be public in the Bahamas and there is no requirement for a Bahamian resident to sit on the board.
The perpetual entities will carry out executive functions and will possess neither shareholders, beneficiaries, enforcers nor any funds beyond those required for its executive functions.
BEEs will be able to act as shareholder of a private trustee company or as a protector, enforcer, advisory board, corporate director or reserved powers holder or to carry out family office style administrative functions.
In February Private Banker International carried details of the proposals from Rose Chamberlayne, a senior LG associate involved in their drafting.