Samiksha Jaiswal (Editor)

Bahamas Executive Entity

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A Bahamas Executive Entity, sometimes referred to simply as an Executive Entity, is designed to encaspsulate powers currently existing in wealth management and estate planning structures within a new form of legal entity. The Executive Entity was born out of legislation passed by The Commonwealth of The Bahamas and which came into force on 2 February 2012. At the time of its statutory introduction, the Executive Entity was considered the first of its type in the world.

Contents

The Bahamas Executive Entity act was proposed and drafted by Caroline Garnham, a leading lawyer from the UK, and CEO of Garnham Family Office Services in London.

In its legal construction, the Executive Entity has similarities to the Bahamas Foundation, introduced into law by virtue of the Foundations Act, 2004, and also to a purpose trust.

Functions, Objectives and Capabilities

An Executive Entity can act as a:

  • trust protector, enforcer or authorised applicant
  • family governance structure
  • ultimate shareholder in a family holding structure
  • shareholder in private trust company
  • director or council member in a fiduciary structure
  • settlor or founder of a trust or a foundation
  • trustee of a trust

    • Benefits

    Some of the commonly accepted benefits include:

  • limited liability
  • unlimited duration
  • ability to sue (and to be sued)
  • exists in a standalone capacity (i.e. has no shareholders, beneficiaries or enforcers)
  • can be tailored to perform specific functions
  • bestows the role, responsibility and power over certain functions on a legal entity rather than on individuals, relative and friends

    • Useful Articles

  • [2] Bahamas - A new legal vehicle for trust administration by Lawrence Graham LLP
  • [3] Bahamas Executive Entity Fact Sheet by The International Protector Group, Bahamas
  • [4] New service to allow trustees to take advantage of Bahamas Executive Entity

    • References

    Bahamas Executive Entity Wikipedia
    (Text) CC BY-SA