Trusts

The attraction of the trust concept is straightforward: the trust is the most flexible financial instrument for making estate planning arrangements, short term or long term, free from the restrictions of the legislation of the domicile of the settlor. Whatever the individual's wishes may be for the future ownership, management, and enjoyment of his property, they can almost certainly be achieved by using a trust. The trust is also increasingly used in commercial structures such as mutual funds and structured debt.

The attraction of Cayman as a jurisdiction in which to establish a trust is also clear: in recent years, as the popularity of the trust concept has grown worldwide, so have the cadres of experts in trust formation and administration in the Cayman Islands. Consequently, that expertise and, more importantly, the legislation which has grown out of it, have attracted more trust business to the Islands to the extent that there are now more trust assets under management in the Cayman Islands (633) than there are deposits in Cayman banks (389).

The increasing complexity of the investment world and the difficulty in preserving wealth have made the trust particularly important as a means by which the individual can provide financial security for his family after his death even though they may not be knowledgeable in investment matters.

The Special Trusts (Alternative Regime) Law 1997 (STAR), substantially extends Cayman's trust planning framework. STAR allows for trusts for any purpose (charitable trusts, person trusts, and purpose trusts) as well as mixed trusts, provided they are lawful and not contrary to public policy.

Click here for a listing of Trust Companies.