STAR trusts: IntroductionThe 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 benefitsA STAR trust might provide increased flexibility when compared to traditional trusts. This might include in the following areas:
- wealth and succession planning,
- investment funds, and
- commercial purposes.
Key uses of a STAR trustThe 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.