DISCRETIONARY
Discretionary Trust
The most common format. Trustee has broad discretion over distribution of income and capital among beneficiaries. Letter of Wishes from the settlor provides soft guidance.
Standard05 · Trusts Act · Privy Council
Трасты Cayman —
защита капитала
на поколения.
Каймановы острова — одна из ведущих юрисдикций для трастов: современное законодательство (Trusts Act, STAR Trust regime), специализированный Financial Services Division Гранд-суда, апелляции в Privy Council. Защита активов, наследственное планирование, благотворительность.
★ Full article · 20 minutes
STAR Trust: trusts for purposes, not people →
Trust types
Six regimes —
for any scenario
From the classic discretionary trust to the unique STAR regime — Cayman offers the broadest set of trust instruments in the world. Each with its own advantages for specific objectives.
STAR TRUST
STAR Trust
Special Trusts (Alternative Regime). A unique regime: may have non-charitable purpose objectives, not only human beneficiaries. Used for orphan structures and special purposes.
UniqueRESERVED POWERS
Reserved Powers Trust
Settlor reserves certain powers (investment, appointment of protector) without invalidating the trust. Under the Trusts Act 2008 amendment. A psychological bridge into trust planning.
Settlor controlEXEMPTED TRUST · TEC
Exempted Trust
May obtain a Tax Exemption Certificate (TEC) from Cabinet — guaranteeing any future Cayman taxes will not apply to the trust. Term: up to 50 years. Often used for Unit Trusts (funds).
50-year TECPTC · PRIVATE TRUST COMPANY
Private Trust Company
Not a trust itself, but a legal entity acting as trustee for one or more family trusts. A PTC conducting only "connected trust business" is exempt from licensing requirements.
Family-controlFOUNDATION COMPANY
Foundation Company
Hybrid of trust and legal entity. Has legal personality, can own assets and enter contracts. Beneficiaries optional (purpose foundation). Used for DAOs, charity, orphan structures.
DAO · F.O.STAR Trust in detail
A unique regime —
not only for people
The STAR Trust was introduced by the Special Trusts (Alternative Regime) Act 1997 and is now found in Part VIII of the Trusts Act. It is the only regime in the world that allows creation of non-charitable purpose trusts — trusts established for specific purposes, without human beneficiaries.
The principal use is in "orphan structures": a STAR Trust holds the shares of a PTC (Private Trust Company), and the PTC acts as trustee of family trusts. The PTC shares fall outside the settlor's estate, achieving full "orphaning".
- PPurpose without beneficiaries
A trust can be created for a purpose (e.g. "to support a specific project") rather than for people. Unique flexibility for DAOs and philanthropic vehicles.
- EEnforcer instead of beneficiary
Enforcement of the trust is the duty of an enforcer, a specially appointed person. May be a lawyer, protector, or even an AI consortium.
- OOrphan for PTC
The most popular application: STAR holds the PTC, the PTC is trustee of family trusts. Complete structural independence from any individual.
- ∞No rule against perpetuities
May continue indefinitely (unlike ordinary trusts limited to 150 years). Ideal for long-term family wealth.
STAR · technical parameters
- Governing act
- Trusts Act, Part VIII
- Beneficiaries
- Optional
- Purposes
- Charitable + non-charitable
- Enforcer
- Required
- Trust duration
- No perpetuity limit
- Trustee requirement
- Licensed trust company
- Tax
- 0% (Cayman tax-neutral)
- Confidentiality
- Full (no public registry)
Applications
What Cayman trusts
solve
Trusts are not simply about "hiding assets". They are an instrument of strategic planning: succession across generations, asset protection from business risks, philanthropy, corporate governance.
Succession planning
Asset transfer across generations without probate disputes, inheritance taxes, or loss of confidentiality. The Letter of Wishes provides "soft" guidance to the trustee without legal constraints.
Asset protection
Trust assets are separated from the settlor's personal estate. Protection against business creditors, foreign judgments, brand litigation. Statutory firewall provisions.
Philanthropy
Charitable Trust or Foundation for systematic philanthropy. STAR Trust for special purpose objectives (scientific prizes, environmental projects, art preservation).
Holding structures
PTC + STAR = an "orphan structure" for holding family assets. Confidential, protected from inheritance disputes, flexible in management (settlor may serve as director of the PTC).
Premium private wealth
Investment portfolio management within the trust. Trustee investment, regular reporting, tax transparency for beneficiaries in their home jurisdictions.
Web3 / DAO
Foundation Company as legal wrapper for a DAO. STAR Trust for holding token treasury. Clear rights and duties of participants, protection from personal liability.
Trust establishment
4 phases —
from consultation to Trust Deed
Establishing a professional trust requires careful preparation. Realistic timeline — 4–8 weeks depending on the complexity of the structure and the number of beneficiaries.
1
Phase I · Weeks 1–2
Consultation
Analysis of objectives, assets, family structure. Selection of trust type, jurisdictions, trustee and protector.
2
Phase II · Weeks 2–4
Trust Deed
Drafting the trust deed: beneficiaries, distribution rules, powers of the trustee and protector, governing-law clauses.
3
Phase III · Weeks 4–6
Settlement & funding
Formal establishment of the trust (signing), transfer of assets, initial settlements. Letter of Wishes from the settlor.
4
Phase IV · ongoing
Ongoing administration
Annual accounts, distribution applications, changes to beneficiaries, investment decisions. We can act as PTC or trustee.
Thinking about a trust?
Confidential consultation
Partner-lawyer will discuss your situation under NDA. We will explain which trust type suits, what assets you can place, costs, and how the structure works in your tax residence.