Sky-High Standards In STAR Trusts

As published by IFC Review, 28 January 2025.

Since their introduction, Cayman STAR (Special Trust-Alternative Regime) trusts have been known for their innovative approach to longstanding trust law principles, and this applies also to the key roles contained in them: trustees, enforcers and (to a lesser extent) beneficiaries. In this article, we shall focus in on the STAR understanding and developments in these roles, with our watch-phrase coming from a seminal article from Antony Duckworth: 'Under STAR the trust is a matter of obligation, not ownership' ((1841) Cr & Ph. 240).

The STARring idea: Introduction to the concept

Although it sometimes comes as a surprise, STAR trusts are not actually the Cayman Islands' only form of trust offering, just as VISTA is not the only British Virgin Islands trust. Cayman trusts can cover the full range: discretionary or fixed interest, beneficial or purpose, reserved powers or fully managed, innovative or entirely