NASSAU, BAHAMAS — A Bahamas-based Reserved Powers and Purpose Trust can be a key instrument for those in the Latin American region seeking solutions to the complexities of securing family wealth in today’s regulatory environment, an international financial services summit was told.
Speaking on Thursday at the Nassau Conference at the Baha Mar Resort, a leading professional development summit for the financial services sector, International Wealth Structuring Specialist Don Stubbs explained that family wealth management needs and structures have become more complex over the past three decades as new regulations and transparency rules have come into effect, as well as the requirement to include diverse asset classes in multiple jurisdictions.
In his presentation—“What’s next in structuring, fiduciary services and solutions”—Stubbs, a Bahamian who is currently the Director and Group Lead for Scotiabank’s International Wealth Structuring & Global Family Office Group in Miami, acknowledged the impact of new CRS and FATCA rules, with their expansion to cover digital assets and cryptocurrencies, along with new tax burdens and reporting requirements has cost the evolution of trust and fiduciary structures from the Bahamas to evolve into state of the art planning structure ideal for Ultra-High Net Worth clients from LatAm and other countries.
According to Stubbs, the complexity associated with these new rules and requirements has caused many Latin Americans to turn to the USA as the preferred jurisdiction for trust and estate planning. However, Stubbs said, a Bahamas Reserved Powers and Purpose Trusts (BPT), Private Trust Companies (PTCs) and other bespoke solutions available in the Bahamas can be an ideal alternative solution.
He explained that a BPT is a trust that can be set up for a particular purpose. This greatly simplifies the process, as there is no requirement that beneficiaries are named, and a trust instrument can be declared for the purpose of holding or investing in shares in a company or any other assets constituting the trust property.
“These instruments can be used for the benefit of philanthropic, commercial, or investment purposes, and institutions named or not named,” he said.
Finally, Stubbs emphasized that to remain at the forefront of the Fiduciary Business firms in the Bahamas must create and maintain expertise to serve Family Enterprise Groups and Family Office structures, which are in high demand from Ultra-High Net Worth clients.
