Gregory Haddow

Anthony Partridge TEP and Gregory Haddow TEP assess changes to the Cayman Islands’ perpetuities rule, in light of new legislation CPD Legislation Trusts Cayman Islands In August 2024, the Cayman Islands introduced the Perpetuities (Amendment) Act, 2024 (the Act), a piece of legislation that allows for the removal of the rule against perpetuities for ordinary trusts, permitting these to last indefinitely (if desired by the settlor).

The Cayman Islands has enacted new legislation to remove the rule against perpetuities for ordinary trusts, allowing these to last indefinitely. This adjustment does not affect Cayman Islands STAR trusts, which were already exempt. Previously, Cayman Islands trusts were constrained by a 150-year perpetuity period, mandating distribution of trust assets within this time frame.

When establishing a trust structure, clients often ask the following questions: What kind of trust is best to meet my goals? Which jurisdiction would benefit the proposed wealth structuring best? Which offshore jurisdiction is less likely to face scrutiny from my "home" onshore jurisdiction? What happens if political or tax changes make offshore wealth structuring less advantageous than onshore wealth structuring?