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 and are subject to specific statutory provisions set out at Part VIII of the Trusts Law (2011 Revision) (Trusts Law) as revised from time to time which sets out the 'Special Trusts—Alternative Regime', hence the acronym 'STAR' trusts.
The administration of a STAR trust will not differ vastly from that of an ordinary Cayman Islands trust; however, there are certain unique features of STAR trusts set out below.
It is important to note that any prospective trustee of a STAR trust must take steps to inform any prospective settlor that it is the enforcer who is the only person with standing to enforce the terms of the trust and not the beneficiaries. Failure to do so is an offence in the Cayman Islands and carries fines ranging from CI$10,000–CI$100,000 (approximately US$12,000–US$120,000) and prison sentences ranging between one to five years.
[Trusts Law, s 107]
The enforcer is the only person with legal standing to enforce the terms of a STAR trust, for example, to bring breach of trust claims before the courts. The STAR trust trustee should therefore seek to strike out any claims against it brought
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234