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ARTICLE · 17 DECEMBER 2004

Cayman Islands Trusts

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Walkers has noticed a growing trend for Cayman Islands trusts to be used in commercial transactions, not just as a stand-alone vehicles, but also as part of complex structures

Cayman IslandsStrategy

Originally published in June 2003

By Grant Stein, Partner and Elisa Gatti, Associate

It is an interesting time to be working with Cayman Islands trusts. Walkers has noticed a growing trend for Cayman Islands trusts to be used in commercial transactions, not just as a stand-alone vehicles, but also as part of complex structures. This article highlights some of the situations where trusts are being used in a commercial context to provide flexible solutions for corporate clients.

Choice of Cayman Islands trust vehicle

We are fortunate in the Cayman Islands to have a choice of the type of trust:

  1. a common law trust, with its origins in English common law; or
  2. a "star" trust, which is a statutory purpose trust. (The star trust is named from the legislation which introduced it, the Special Trusts (Alternative Regime) Law, and although it is now consolidated in the Trusts Law, the name has stuck.)

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