The following Private Client guidance note Produced in partnership with Mourant Ozannes provides comprehensive and up to date legal information covering:
Non-charitable purpose trusts are called ‘STAR’ trusts in the Cayman Islands. They are subject to specific statutory provisions at Part VIII of the Trusts Law (2011 Revision) as revised from time to time (Trusts Law) which sets out the 'Special Trusts—Alternative Regime', hence the acronym 'STAR' trusts.
The STAR trust is arguably the most flexible and dynamic form of trust available in the Cayman Islands. It is capable of carrying out any number of charitable and non-charitable purposes so long as such purposes are lawful and not contrary to public policy.
[Trusts Law, s 99(3)]
STAR trusts are capable of being pure purpose trusts or trusts for individuals only, or a combination of the two. STAR trusts are also capable of being perpetual in nature which distinguishes them from other forms of private Cayman Islands trusts (non-charitable in nature) which are otherwise currently subject to a maximum 150 year perpetuity period (see section 13 of the Perpetuities Law (1999 Revision)).
The STAR trust also shifts the rights of enforcement and rights to trust information away from the beneficial objects and vests these powers in an enforcer. Another key feature is that a STAR trust cannot be collapsed by all of the beneficiaries acting together utilising the principle of law set
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