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9. In this Part, "purpose trust" means
(a) a trust, other than a trust that is for the benefit of particular persons, whether or not immediately ascertainable, or
(b) a trust that is for the benefit of some aggregate of persons ascertained by reference to some personal relationship.
10.(1) Notwithstanding any law to the contrary but subject to this section, a valid international trust may be created for a non-charitable purpose, if
(a) the purpose is specific, reasonable and capable of fulfilment;
(b) the purpose is not immoral, unlawful or contrary to public policy;
(c) the terms of the trust provide for the appointment of a protector to enforce the trust and for the appointment of a successor to such a protector; and
(d) the terms of the trust specify the event upon the happening of which the trust terminates and provides for the disposition of surplus assets of the trust upon its termination.
Protector not to be trustee
11.(1) The protector of an international non-charitable purpose trust may not be a trustee thereof
12.(1) Where a trustee of an international trust has reason to believe that
(a) the protector of that trust is dead, is unwilling, refuses or is unfit to act or is incapable of acting;
(b) there is no other protector of the trust;
(c) no one has been appointed as successor to the protector referred to in paragraph (a) in accordance with the terms of the trust,
the trustee shall, as soon as practicable, apply to the court for the appointment of a protector of the trust
(2) The order of the court under subsection (1) is conclusive of the appointment of the protector to enforce the trust and the appointment takes effect from the date of the order.
(3) A trustee who fails to comply with subsection (1) is guilty of an offence and liable on summary conviction to a fine of ten thousand dollars.
(4) In addition to the fine specified in subsection (3) the court may order the trustee referred to in that subsection to be a trustee of non-charitable purpose trusts for two years.
(5) It is a defence to a charge under subsection (3) to prove that the trustee took all reasonable steps and exercised due diligence to comply with subsection (1).
13.(1) A trustee of an international trust created under section 10 shall keep in Barbados
(a) a copy of the instrument creating the trust and copies of any other instrument amending or supplementing the instrument;
(b) a register in which the following information is set out:
(i) the name of the settlor,
(ii) a summary of the purposes of the trust,
(iii) the name of the protector of the trust, and
(iv) such documents as are necessary to show the true financial position of the trust.
(2) The instrument, register and documents referred to in subsection (1) are confidential and not available to the public, but the trustee shall allow the protector or a person authorised by the protector to inspect the instrument, register and documents.
(3) Where a trustee of an international trust created under section 10
(a) fails to comply with subsection (1);
(b) refuses to allow a person referred to in subsection (2) to inspect the instrument, register or documents referred to in that subsection; or
(c) makes or authorises the making in any deed, register or document referred to in subsection (2) any statement that he knows to be false or does not believe to be true,
he is guilty of an offence and liable on summary conviction to a fine of ten thousand dollars and in addition to such fine the court may order the trustee to cease to be a trustee of international non-charitable purpose trusts for two years.
14(1) Where a trust is created for a non-charitable purpose, the terms of the trust may provide that the doctrine of cy-pres is, mutatis mutandis, applicable thereto.
(2) For the purpose of subsection (1), where a purpose that is reasonably similar to the original purpose cannot be found a purpose that is not contrary to the spirit and meaning of the settlement may be substituted for the original purpose.
This information was correct in October 1995.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances
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