1. Introduction

The Jamaican Legacy Trust is designed to provide asset protection, intergenerational wealth transfer, and community impact for members of the Jamaican diaspora who seek to establish a trust structure in Jamaica. This framework outlines the legal, tax, and administrative processes for registering and managing U.S.-based Legacy Trusts in Jamaicaunder SourceEnergy Wealth Advisors (SEWA).

2. Objectives of the Jamaican Legacy Trust

• Intergenerational Wealth Transfer: Preserve and grow assets for future generations.
• Asset Protection: Shield assets from lawsuits, creditors, and excessive taxation.
• Charitable & Philanthropic Endeavors: Fund scholarships, community projects, or religious organizations.
• Investment in Jamaica: Support Jamaican infrastructure, businesses, and real estate.
• U.S.-Jamaica Tax Efficiency: Structure trusts to benefit from international tax treaties and exemptions.

3. Legal Framework in Jamaica

3.1 Governing Laws

• The Trustee Act (1897) governs most private trusts.
• The Charities Act (2013) applies to trusts involved in philanthropy.
• Common Law and Equity Principles guide trust administration.
• International Business Companies (IBC) Act applies if trusts hold offshore assets.

3.2 Types of Trusts Allowed

• Discretionary Trusts – Trustees manage asset distribution at their discretion.
• Fixed Trusts – Predetermined distributions to beneficiaries.
• Charitable Trusts – Support philanthropic causes with tax advantages.
• Hybrid Trusts – Combines features of discretionary and fixed trusts.
• Asset Protection Trusts – Protects wealth from legal risks.

4. Establishing a Jamaican Legacy Trust

4.1 Selection of Trustee(s)

• The primary trustee for Jamaican Legacy Trusts will be SourceEnergy Bank & Trust.
• Additional trustees may be appointed based on specific trust needs.
• SEWA can assist in identifying reputable trust co-administrators.

4.2 Drafting the Trust Deed

• Trustor (Grantor): U.S.-based individual(s) setting up the trust.
• Trustee: SourceEnergy Bank & Trust, the primary trust administrator.
• Beneficiaries: Individuals, families, charities, or businesses.
• Assets: Includes real estate, businesses, cash, securities, or intellectual property.
• Governing Law: Jamaican law with optional U.S. legal provisions for tax compliance.
• Distribution Guidelines: Specific instructions on asset disbursement.
• Duration: Can be perpetual or for a fixed term.

4.3 Registration Requirements

• Private Trusts: Registration may not be mandatory but recommended for legal clarity.
• Charitable Trusts: Must be registered with the Companies Office of Jamaica and Tax Administration Jamaica (TAJ).
• Real Estate Holding Trusts: Requires land title registration with the National Land Agency (NLA).

5. Tax Considerations

5.1 Jamaican Taxation

• No Estate Tax: Jamaica does not impose inheritance or estate taxes.
• Income Tax: Trust income generated in Jamaica is subject to local tax rates.
• Charitable Trusts: Eligible for tax exemptions if registered with TAJ.

5.2 U.S. Tax Compliance

• Foreign Grantor Trust Rules: U.S. citizens must report foreign trust interests to the IRS (Form 3520 & 3520-A).
• FATCA Compliance: Trusts with U.S. beneficiaries may require disclosure under Foreign Account Tax Compliance Act (FATCA).
• U.S.-Jamaica Double Tax Treaty: Provides tax relief on income generated between both nations.

6. Asset Types Allowed in the Trust

• Jamaican Real Estate: Investment properties, family land, commercial developments.
• Business Ownership: Holding companies for Jamaican businesses.
• Bank & Investment Accounts: Trust-held accounts in Jamaica.
• U.S.-Based Assets: Can include securities, cash, or intellectual property (IP) assigned to the trust.

7. Trust Administration & Management

• Annual Trust Review: Required to ensure compliance with Jamaican and U.S. laws.
• Trustee Fiduciary Duties: SourceEnergy Bank & Trust must act in the best interest of beneficiaries.
• Distribution & Payout Mechanisms: Governed by trust deed provisions.
• Record Keeping & Reporting: Trust financial statements must be maintained.

8. Sample Trust Deed Language

Below is an example of a basic Jamaican Legacy Trust Deed clause:

Trust Creation Clause: “This Trust is established on this [date] by [Trustor Name], hereinafter referred to as ‘the Trustor,’ for the benefit of [Beneficiaries’ Names]. The Trust shall be administered by SourceEnergy Bank & Trust in accordance with the laws of Jamaica.”

Business Succession Clause: “In the event of the Trustor’s incapacity or passing, the Trustee shall ensure that the business assets held within the trust are managed according to the outlined succession plan in Schedule B. The appointed successor shall assume operational control under the oversight of the Trustee to ensure business continuity.”

Philanthropic Giving Clause: “The Trustee shall allocate a percentage of the trust’s annual income to philanthropic endeavors as designated by the Trustor. Contributions shall be directed to registered charities, community development programs, or scholarship funds in accordance with the trust’s mission statement.”

Investment Clause: “The Trustee shall have the authority to invest Trust assets in real estate, securities, and other income-generating opportunities, prioritizing sustainable and community-based investments in Jamaica.”

Termination Clause: “This Trust shall continue until [specified term], at which point the assets shall be distributed in accordance with the provisions of this Trust Deed.”

9. Tax-Saving Strategies for U.S.-Jamaican Trusts

1. Use of Foreign Grantor Trusts: U.S. citizens can benefit from deferred taxation by structuring the trust appropriately.
2. Tax-Exempt Status for Charitable Trusts: Registering as a charitable entity in Jamaica eliminates local income tax obligations.
3. U.S.-Jamaica Tax Treaty Benefits: Reduce withholding tax on dividends, interest, and royalties through treaty provisions.
4. Strategic Asset Allocation: Holding Jamaican real estate in a trust can minimize U.S. estate tax exposure.
5. Utilization of Double Tax Relief Mechanisms: Claim foreign tax credits to offset Jamaican taxes against U.S. tax liabilities.

10. Conclusion & Next Steps

SourceEnergy Wealth Advisors (SEWA) will facilitate the establishment of each U.S.-based Legacy Trust in Jamaicaby:

1. Providing legal and financial structuring support.
2. Assisting with trustee selection and administration through SourceEnergy Bank & Trust.
3. Ensuring compliance with U.S. and Jamaican tax regulations.
4. Advising on strategic investments and wealth management within Jamaica.
5. Optimizing tax-saving strategies to preserve wealth.

For further assistance, SEWA can offer customized trust plans, legal templates, and trustee partnerships to ensure smooth execution.