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Cayman Islands trust law and key features
Cayman Islands trust law is the Trusts Act (2021 Revision), with a special regime for STAR trusts and a 2024 change to the perpetuity rule. This page lists the rules, with its source and date, and your lawyer confirms how each applies to your deed.
Reviewed by a senior trust administrator, updated
The legal frame at a glance
What the law provides, with the source number for each item.
Key facts
- Perpetuity period
- Trusts made after Aug 2024 may disapply the perpetuity rule; STAR trusts unaffected[2]
- Protector
- STAR trust: a beneficiary cannot enforce it; the enforcer can (s.100)[1]
- Perpetuity period
- Trusts made after Aug 2024 may disapply the perpetuity rule; STAR trusts unaffected[2]
Numbers in brackets point to the Sources list at the end of this page.
Swipe sideways to see the whole diagram.
- SettlorSets up the structure and transfers assets into it
- transfers assetsSTAR trusteeHolds the assets and manages them under the trust deed
- applies assets toBeneficiaries or purposesPeople, purposes or both that the trust serves
- Enforcer can enforce the termsEnforcerCan hold the trustee to the terms of the trust
- STAR trustee holds legal titleTrust assetsThe property held in the structure
Roles and notes
| Part of the structure | What it does |
|---|---|
| Settlor | Sets up the structure and transfers assets into it |
| STAR trustee | Holds the assets and manages them under the trust deed |
| Enforcer | Can hold the trustee to the terms of the trust |
| Beneficiaries or purposes | People, purposes or both that the trust serves |
| Trust assets | The property held in the structure |
- A STAR deed names an enforcer, who can hold the trustee to the deed.
- The trustee holds the assets and acts within the terms of the deed.
- A protector, if the deed creates one, can be asked to consent to key decisions.
- The deed states whether the STAR rules apply.
The governing law
The core statute is the Trusts Act (2021 Revision). It covers how a trust is formed, run and challenged, and it holds the rules for STAR trusts.
The deed names its governing law. Your lawyer decides with you whether that law should be Cayman law or another.
Who may act as trustee
The trustee must follow the deed and the duties the law sets. Whether a STAR trust needs a trustee of a particular type is confirmed for your case before any deed is signed.
We name the Cayman trustee company in writing before you sign. Our part is the checks, the papers and the contact with your lawyer.
A family can also set up its own trustee company. A Cayman private trust company is a separate structure with its own papers and its own conditions.
Features the law allows
The points below are drafting choices your lawyer may consider. Each one is a tool, not a result we promise.
| Provision | Topic |
|---|---|
| Trusts Act | The STAR regime for special trusts |
| s.100 | Enforcer, not beneficiary, can enforce a STAR trust |
| Perpetuity change (Aug 2024) | Ordinary trusts may disapply the perpetuity rule |
Source: Walkers (2024); Ogier (2025); accessed 2026-11-05.
A Cayman STAR trust is set up by a deed that says the regime applies.
Weigh that carefully. A STAR deed gives the settlor more room, and beneficiaries less direct power.
For ordinary trusts made after August 2024, the settlor may disapply the rule against perpetuities and let the trust last indefinitely.
STAR trusts already sat outside the rule. The change covers new trusts and foreign trusts that move to Cayman law (source: Ogier).
Limits and requirements
Each feature has conditions, and a deed that ignores them can fail. For a Cayman trust, counsel looks first at the date of the deed and the wording of the opt-out.
- Perpetuity change. The 2024 change is not retroactive, and a new deed should state clearly that the rule is disapplied.
- Dates. Counsel checks the date of the deed, and of each transfer into it, against any existing or expected claim.
- Your home courts. A court in your own country may look at who really controls the assets, whatever the STAR rules say.
- Records and conduct. The trustee must act under the deed in practice. The file also records each decision and who took it.
- Enforcer choice. The enforcer’s role is central in a STAR trust, so the deed should say who replaces it.
No Cayman feature makes assets untouchable, and we do not describe a STAR trust that way. Outcomes depend on the facts of each case and on courts we do not control.
The formation steps and documents show where these checks happen during set-up.
Sources and review dates
The STAR points come from a Walkers article dated 2024, and the perpetuity points from an Ogier article dated 2025.
To go further, practical questions about running the trust are on our plain-answers page. For the overview, return to the main Cayman guide.
For what each part costs, see the breakdown of set-up and yearly charges. Our page on wealth structuring and asset protection explains our approach in general.
Frequently asked questions
Which law governs a trust in the Cayman Islands?
The Trusts Act is the core statute for a Cayman trust, and it holds the rules for STAR trusts. Your lawyer confirms how it applies to your deed. The deed names its governing law, and you decide with your lawyer whether that should be Cayman law or another.
Who may act as trustee in the Cayman Islands?
Whether a trustee must be a particular type of company, for example for a STAR trust, is a point your lawyer confirms before any deed is signed. A trust company in the Cayman Islands holds office as trustee, and we say which one in writing before you sign.
Can a trust in the Cayman Islands have a protector?
Yes, the deed can create the role and set its powers, such as consenting to distributions or replacing the trustee. A STAR trust also has an enforcer. Your lawyer advises who holds each role, since a protector tied closely to the settlor can weaken the structure.
Sources
- Walkers: Cayman Islands STAR Trusts, Reinforcing the Role of Enforcers (2024), read 2026-11-05.
- Ogier: Adapting to Cayman Islands perpetuities changes (2025), read 2026-11-05.