Cayman Islands STAR trusts—management
Produced in partnership with Mourant Ozannes
Cayman Islands STAR trusts—management

The following Private Client guidance note Produced in partnership with Mourant Ozannes provides comprehensive and up to date legal information covering:

  • Cayman Islands STAR trusts—management
  • Part VIII of the Trusts Law (2011 Revision)
  • Management and administration of STAR trusts
  • New STAR trusts
  • The enforcer
  • STAR trust trustees
  • Trust records
  • Uncertainty of objects
  • Cy-près
  • Theft
  • more

Part VIII of the Trusts Law (2011 Revision)

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.

Management and administration of 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.

New STAR trusts

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

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