In early 2012, the Government of The Bahamas introduced legislation to permit the establishment of Executive Entities in The Bahamas.

The Executive Entities Act is a unique and ground-breaking piece of legislation, designed specifically to resolve complex governance issues in fiduciary and wealth management structures. An Executive Entity is designed to act as a power holder and to encapsulate powers currently existing in wealth management and estate planning structures within a new form of legal entity.

In its legal construction, the Executive Entity has similarities in its standalone nature to a foundation and also to a purpose trust, and yet it is equipped with an array of intriguingly different functions, objectives and capabilities.

An Executive Entity can act as a:

  • protector, enforcer or authorised applicant
  • investment advisor to a succession planning structure
  • ultimate shareholder in a family holding structure
  • shareholder of a private trust company
  • director (replacing a corporate director) or council member in a fiduciary structure
  • settlor or founder of a trust or foundation
  • trustee of a trust (subject to licensing requirements)
  • family governance structure

Key benefits of an Executive Entity:

  • limited liability
  • unlimited duration
  • ability to sue
  • exists in a standalone capacity
  • can be tailored to perform specific functions
  • bestows the role, responsibility and power over certain functions on a legal entity rather than on individuals, relatives and friends