Deltec is licensed to establish and manage revocable and irrevocable Bahamian Trusts.
An important element of the trust is that it presents a distinct separation between legal ownership, and beneficial ownership.
Trusts offer a number of benefits, the most attractive of them being inheritance planning, organization of financial affairs, immediate disbursement of assets to loved ones after the Settlor’s death, and of course confidentiality.
Another very attractive feature of the Bahamian trust is that it allows the Settlor to retain certain administrative powers without invalidating the trust. For example, the Settlor may revoke the trust, add and remove beneficiaries, Trustees, Protectors, or other representatives of the trust, and also give the Trustee general directions/advice. The Settlor may also function as the trust’s Protector, which may prove to be an advantage where a Declaration of Trust is established, as mentioned below.
A trust may be created by a Deed of Settlement whereby the Settlor plays an active role in the administration of the trust’s affairs, and is a party to the trust deed. Alternatively a Declaration of Trust may be created whereby the Trustee declares that it shall hold property based on certain expressed wishes of the client. A declaration affords the client a degree of confidentiality, since his name is typically not mentioned in the deed.
Deltec uses a network of international tax specialists and advisors whenever it is necessary to find the best possible solution for a special case or to establish complex trusts.
A foundation is best described as being a hybrid of a Trust and a company. While the business of a foundation is carried out in a similar manner as that of a company, Foundations offer beneficiaries immediate access to Foundation assets thus avoiding the hassles of probate.
The Bahamas introduced its Foundation legislation in 2004, and since that time Bahamian foundations have grown considerably in popularity. Among the more popular features/uses are:
- Avoidance forced heirship in other jurisdictions
- A Nominee founder may be used to enhance confidentiality
- Names of beneficiaries need not be mentioned in the Charter document
- May be formally liquidated, or revoked
- May be redomiciled
- Offers most of the benefits of a Trust
- Offers most of the benefits of a Company
Deltec offers fully managed companies, where we function as directors and officers, Registered Agent/Office and if required provide nominee shareholders. We also provide any one or a combination of these services based on the client’s individual need.
Because of its flexibility in servicing the needs of International clients, Deltec promotes the Bahamian International Business Company (“IBC”), however if required companies incorporated in other jurisdictions are also available. Typical uses of the Bahamian IBC include:
- Holding Companies
- Investment Companies
- Shipping companies
- Captive Insurance Companies
- Private Trust Companies
- Family Offices
Some features of the Bahamian IBC include:
- Fast incorporation – typically 2 to 3 days, but IBCs can be incorporated within 24 hours
- Shareholder information not made public
- Minimum directors / shareholder is 1
- Easy termination / dissolution
- No stamp or other taxes