Wealth Structuring And The Cayman Islands Foundation

In March 2017, the Cayman Islands Legislature passed the Foundation Companies Law, 2017 (the "Law"). The Law came into force on October 18th 2017, and provides yet another addition to the comprehensive and innovative wealth planning vehicles for which the Cayman Islands has come to be known. The Law allows for the creation of a new form of company that allows the founder maximum flexibility to provide for its objects, management and supervision.

While a foundation company is prohibited from paying dividends or other distributions of profits or assets to its members, the Law expressly provides that a member who is a beneficiary of the company and receives benefits as such is not regarded as receiving a dividend or distribution as a member.