On 22 August 2024, the Perpetuities (Amendment) Act, 2024 came
into effect (the “Amendment”). The
Amendment is a welcome enhancement to the Cayman Islands trust and
estate planning sector as it abolishes the mandatory perpetuity
period of 150 years for Cayman law ordinary trusts (except for
trusts holding land or interests in land situated in the Cayman
Islands). The effect of this is that such trusts can now last
indefinitely. Previously, ordinary trusts that were established in
the Cayman Islands were required to vest within a 150 year
perpetuity period.
In respect of existing ordinary trusts, it is possible for the
trustees of the trust (amongst others) to apply to the Grand Court
of the Cayman Islands to disapply the rule against perpetuities,
the effect of which will be that such trusts can last
indefinitely.
