As a global centre of excellence for trusts, the Cayman Islands financial sector has serviced international clients for decades, providing modern, flexible and robust structures for wealth structuring, estate planning and commercial applications.
As a global centre of excellence for private wealth structuring, the Cayman Islands has served international clients for decades, providing modern, flexible and robust structures for wealth and estate planning, as well as trust structures for commercial applications. While based on English law, Cayman’s Trusts Act has been regularly updated to remain modern, competitive with other offshore jurisdictions, and responsive to the evolving needs of a complex global client base.
The Cayman Islands stands out from other offshore jurisdictions with its progressive and innovative private wealth legislation. The Cayman Islands STAR trust and foundation company are excellent examples of this.
Cayman Islands STAR (Special Trusts – Alternative Regime) trusts are particularly interesting and useful for wealth planning purposes due to their unique structure and versatility. Unlike traditional trusts, STAR trusts can have both charitable and non-charitable purposes (or a combination of both). This means they can be used not only to benefit specific individuals, families or entities, but also to further particular purposes (for example holding shares in a family business or to benefit purposes that wouldn’t fit under the traditional heads of what is ‘charitable’).
Importantly, enforcement of a STAR trust is carried out by an appointed ‘enforcer’ rather than the beneficiaries. The beneficiaries of a STAR trust do not have any standing to enforce the trusts of a STAR trust or any enforceable right against a trustee or enforcer or a right to the trust property. STAR trusts can also be established in perpetuity, meaning they may exist indefinitely as long as they continue to hold assets. This makes them highly attractive for clients seeking privacy, asset protection, dynastic planning and long-term succession arrangements.
Foundation companies can be an attractive alternative to trusts, particularly for clients in civil law jurisdictions where the common law concept of a trust is often unfamiliar. Like trusts, foundation companies are commonly used as succession planning and asset protection vehicles. Increasingly, foundation companies are used to establish private trust companies for ultra-high-net-worth individuals and family offices.
Cayman foundation companies have the features of both a company and a trust. This allows them to hold assets, contract, sue, and be sued in their own name, whilst also being able to pursue both charitable and non-charitable purposes. They do not need to have shareholders or members. If they have no shareholders or members (often referred to as being ‘orphaned’) there is a requirement to appoint a ‘supervisor’. The supervisor has the right to receive notice, attend and vote at general meetings of the foundation company, and they can also be provided other powers and duties, given the flexible nature of the Foundation Companies Act.
A foundation company provides an attractive alternative in a range of wealth planning, philanthropic, private and commercial scenarios.
According to CIMA, as of June 2025, there were 134 Active Trust Licences, of which 54 were Full Trust Licences, 57 were Restricted Trust Licences and 23 were Nominee (Trust) Licences. In addition, there were 150 Private Trust Companies registered in Cayman.
