Parliament passed a bill to make Bermuda's trust laws more competitive with all-party support yesterday.

Finance Minister Paula Cox said the Perpetuities and Accumulations Act 2009 would modernise, simplify and streamline the law.

Currently the law limits the amount of time a trust or will can tie up assets whether it's personal property, money or shares to 100 years.

The restraint will not be removed for Bermuda property but other assets will be free from this restriction while trusts holding land elsewhere but operated from Bermuda will also be freed up.

It will help remove some of the complications which might have stopped wealthy families looking at a jurisdiction to put a trust, from considering Bermuda.

Ms Cox said the UK had recently got rid of the 100-year rule and the changes here had the support of the Bermuda International Business Association trust sub committee.

She added: "The committee has also argued that Bermuda's competitors, including Jersey, have taken steps to remove similar restrictions on trusts and these jurisdictions may gain a competitive advantage in the trust sector if Bermuda does not repeal the rule.

"However as land is a valued resource in Bermuda the Government has taken the position that the rule should continue to apply to interests in real property, but only to land held in Bermuda.

"It would no longer apply to personal property nor land outside Bermuda."

The bill does not apply retrospectively.

It got support from the United Bermuda Party although Finance spokesman Bob Richards wondered why it was not passed as an amendment act to the Perpetuities and Accumulations Act 1989, rather than a new act.