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The Perpetuities and Accumulations Act 2009 (the “2009 Act”) came into force in Bermuda on 1st August 2009, abolishing the rule against perpetuities for Bermuda law trusts in all cases except in respect of Bermuda real estate. The legislation has immediate application for instruments coming into effect on or after 1st August 2009, the commencement day. For these purposes, instruments include inter vivos trusts settled on or after the commencement day as well as trusts drafted under wills executed on or after the commencement day. The 2009 Act was passed by the Bermuda Parliament on 29th May following a period of thorough research and analysis by key industry professionals and regulatory bodies of how the new rules would best fit the traditional characteristics of Bermuda trusts. The 2009 Act is intended to enhance the flexibility and functionality of Bermuda trusts and will increase Bermuda’s attractiveness to wealthy families looking to establish trusts in offshore jurisdictions. In spite of the current worldwide economic downturn, many successful individuals have accumulated significant wealth and the 2009 Act in Bermuda opens up a new range of longer term financial planning options to ensure that their families can benefit from this wealth without it being dissipated by the third generation.
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Bermuda’s Perpetuity Period Abolished
This article was published by Trusts & Trustees Journal.