Since 1998, the Cayman Islands have had enacted trust law
provision, as now contained in Part III of the Trusts Law (2020
Revision), which avoid the risks of a trust being declared an
"invalid testamentary disposition" or otherwise invalid
as a result of the settlor retaining too much control.
What powers may be reserved?
The provisions create a rebuttable presumption, in construing
any trust instrument which is not expressed to be a will, testament
or codicil, that such trust instrument has immediate effect. The
provisions then list a number of specific powers, the reservation
or grant of any or all of which will not invalidate the trust or
affect the presumption of lifetime effect. These include:
