Offshore focus – Bahamas

As a general proposition, trustees must keep the affairs of the trust confidential, ¹ as well as personal information relating to beneficiaries, as part of the law relating to breach of confidence. ² There also exists a corresponding fiduciary duty arising out of the relationship that ensures that the affairs of the trust be kept confidential. There are even instances where a trustee is not required to disclose information to the beneficiaries themselves as established by common law principles. These have now been expressly codified, ³ which limits the rights of beneficiaries to demand disclosure of information as well as giving a trustee the right to exercise their absolute discretion to not disclose certain information as set out therein. However, what happens when a trustee is faced for a demand for information from a third party and how are these mechanisms employed and scrutinised by the offshore courts. This article focuses on The Bahamas as one such jurisdiction.