STAR trusts: Introduction
The Cayman Islands offers a unique form of statutory trust called a "STAR Trust," which stands for Special Trusts Alternative Regime. STAR Trusts, as governed by Part VIII of the Trusts Act (revised).Overview of benefits
A STAR trust might provide increased flexibility when compared to traditional trusts. This might include in the following areas:- wealth and succession planning,
- pensions,
- philanthropy,
- investment funds, and
- commercial purposes.
Key uses of a STAR trust
The key uses of STAR Trusts include:- Trusts for non-charitable purposes.
- Mixed trusts serving noncharitable purposes and benefiting specific individuals.
- Non-charitable trusts with unlimited duration (bypassing perpetuity restrictions).
- Charitable trusts with enhanced enforcement provisions.
- Trusts that vest enforcement and information rights in an independent enforcer.
- Trusts that cannot be subsequently varied.