Cayman Islands STAR trusts—drafting
Produced in partnership with Mourant Ozannes and Carey Olsen
Cayman Islands STAR trusts—drafting

The following Private Client practice note produced in partnership with Mourant Ozannes and Carey Olsen provides comprehensive and up to date legal information covering:

  • Cayman Islands STAR trusts—drafting
  • Part VIII of the Trusts Law (2020 Revision)
  • Drafting STAR Trusts
  • Declaration of application of STAR law
  • Trusts for purposes, persons, or both
  • Duration
  • The enforcer
  • Trust Corporation
  • Land in the Cayman Islands

This Practice Note provides guidance on Cayman Islands trusts. For general information about the Cayman Islands, see Practice Note: Private Client jurisdictional guide—Cayman Islands.

Part VIII of the Trusts Law (2020 Revision)

The Cayman Islands provides for a unique form of non-charitable purpose trust referred to as a ‘STAR Trust’. The legislation which allowed for STAR Trusts to be established in the Cayman Islands is the Special Trusts (Alternative Regime) Law 1997, hence the acronym ‘STAR’. This legislation has been incorporated into the Trusts Law (2020 Revision) at Part VIII.

Drafting STAR Trusts

In addition to the general duty the draftsperson owes to the settlor to produce a trust instrument which accurately and correctly reflects the settlor's instructions, there are certain drafting matters which are unique to STAR trusts and are set out below.

Declaration of application of STAR law

Section 96(1) of the Trusts Law provides that a STAR trust must be created by a written instrument which expressly provides that Part VIII of the Trusts Law applies to it. Failure to do so is not fatal if a trust or power is created by written instrument in exercise of a special power (being a trust or power to which Part VIII of the Trusts Law applies) and there is no intention to the contrary that Part VIII of the Trusts Law should apply. In such circumstances, the trust instrument

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