Wills, Trusts and Tax: How Jamaicans Can Transfer Wealth More Efficiently.

Kingston, Jamaica — 13 August 2025

For Jamaicans with significant assets, a will is only the beginning of estate planning. The taxes and costs associated with transferring wealth on death, including transfer tax on real estate and shares, stamp duty, attorney fees, and executor commission, can consume a meaningful share of an estate’s value. Understanding the available legal tools for minimising that burden is increasingly important as property values in Jamaica continue to rise and the generational stakes of estate planning grow higher.

Transfer Tax on Death: The Basics

Jamaica imposes transfer tax on death on real estate and shares where the net value of those taxable assets exceeds $10 million at the date of death. Where the threshold is exceeded, tax is charged at 1.5 per cent on the value above $10 million. This rate is more favourable than the 2 per cent transfer tax that typically applies to assets transferred during a person’s lifetime. A key exemption applies to a dwelling house that was the deceased’s principal place of residence, which may not attract transfer tax at all. Interest at 6 per cent per annum accrues on any unpaid death duties from six months after the date of death, making prompt administration of the estate financially important as well as legally necessary.

The Trust as an Estate Planning Tool

A trust is a legal arrangement in which assets are held by one party, the trustee, for the benefit of another, the beneficiary. In Jamaica, trusts can serve several estate planning functions. A discretionary trust gives the trustee flexibility to distribute income and capital among a class of beneficiaries according to defined criteria, useful where the future needs of beneficiaries are uncertain. A fixed trust specifies exact entitlements. A revocable trust can be altered or wound up during the settlor’s lifetime but its assets remain part of the taxable estate on death. An irrevocable trust, once properly established, can remove assets from the settlor’s estate for tax purposes, though care must be taken with the transfer tax payable when assets are moved into trust during the settlor’s lifetime, currently 2 per cent. The recently enacted Trusts Act modernises Jamaica’s legislative framework for trusts, introducing codified concepts of protectors and enforcers that give settlors greater ability to oversee and safeguard trust arrangements over time.

Using a Company for Family Assets

For high-net-worth individuals and families with multiple assets including businesses, holding those assets through a company incorporated under Jamaican law has specific advantages. The company continues to exist after the death of its shareholders, providing continuity that a sole proprietor’s estate cannot. Because the company owns the assets, those assets do not form part of the shareholder’s personal estate on death. Ownership can be transferred to intended beneficiaries through shares, which may carry more favourable tax treatment than a direct property transfer in certain circumstances. The structure requires ongoing compliance costs, but for families managing significant real estate portfolios or operating businesses intended to continue across generations, it can provide a more durable and efficient ownership architecture than personal ownership alone.

Getting the Structure Right

The choice between a will, a trust, a company structure, or a combination of all three depends on the nature and value of the assets, the family’s circumstances, and the desired outcome. There is no universally correct answer. What is universally true is that the decision is better made with professional legal and tax advice than without it. The cost of structuring an estate properly is almost always lower than the cost of the disputes, delays, and taxes that arise when no structure exists. For Jamaican property owners in particular, as land values continue to rise and estates grow more complex, the case for professional estate planning has never been stronger.

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