in other offshore jurisdictions, the president of the Bermuda Association of Licensed Trustees has said.

Robert Miller, speaking in his capacity as CEO of local trust company, Cedar Trust Co. Ltd. and the head of the trust and corporate department of Richards, Francis & Francis said, "Bermuda has struck a very fair balance, I think, between the rights of creditors and the rights of debtors. Moderation is useful in all things.'' Mr. Miller addressed a private gathering on Saturday at RBYC attending "Offshore Wealth Preservation and Planning Seminar'', presented by Cedar Trust Company Ltd., in conjunction with lawyers Richard Francis & Francis, and, exempt company Swiss Annuity Exchange Ltd.

Mr. Miller said, "The Cook Islands may have developed their trust law, for example, by statute, when trust law is normally based on case law and equity.

Cook Islands may have all of the attributes that people believe will be present in a perfect world, but by enacting those things, they have undermined the security of their product.

"I'm talking about upholding the transfer of assets in a trust. They may have gone overboard. When people come after the money, it becomes known that the funds are in a trust in a jurisdiction that is known to favour the rights of debtors, over those of creditors.

"People are starting to think that that may amount to a badge of fraud. In trust law there are a number of badges of fraud. One is where you put all your assets into a trust. Another is where you act with great secrecy and great haste. Another is where you hotly deny that the trust has anything to do with taking assets out of the reach of creditors, a case of protesting too much.

"Bermuda has taken a moderate path, which has advantages. It is a more credible way of going about things.'' Mr. Miller said the laws of Switzerland protect the proceeds of insurance policies against creditors in certain situations. And with a Bermuda trust, it is a double layer of insulation.

"I have always felt that it was unwise to set up a trust to remove money from the reach of creditors, even future creditors.

"There are many very good reasons for setting up trusts, which offer benefits to people onshore, which they can access through an offshore trust. And in achieving those benefits in a jurisdiction which has at least clarified and kept the law relating to transfers and trust, is value added.'' BUSINESS BUC