If you’re considering a Cayman Island trust, you’re probably a sophisticated investor or successful entrepreneur, or you just want to know what all the hype is about.
Well, the Cayman Islands is one of the most reputable offshore jurisdictions available, home to highly sophisticated structuring options, and competent financial services.
That said, other professional jurisdictions like Guernsey, Jersey, the Cook Islands, and the Bahamas offer comparable structures and benefits and should also be on your shortlist before deciding how to move forward.
In this article, we’ll discuss the key variables you should consider along with important factors that can influence whether a Cayman Islands trust is right for you.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Cayman Island Trusts 101
- Is a Cayman Trust Right For My Business?
- Frequently Asked Questions
- Ready to Explore Your Options?
Cayman Island Trusts 101
While Cayman is often depicted as an offshore backwater, it is easily one of the most sophisticated structuring and banking hubs in the world. This is true in terms of trusts, investment funds, and corporate entities.
With this in mind, Cayman structures are expensive to set up and expensive to maintain, and service providers here are among the best in the world (expensive). However, if budget is not a concern, it’s hard to find a better selection of services, structures, and banks all in one place.
For this reason, individuals looking at estate planning, wealth management, asset protection, or simply trying to increase financial privacy may find Cayman meets their needs. Needless to say, this can be challenging for family members or governments who prefer greater transparency.
It’s also worth noting that Cayman is a suitable jurisdiction for complex sources of wealth and certain high-risk profiles. However, in most cases, individuals (or entities) with complex and high-risk profiles may find they are better served in Switzerland.
With this in mind, it’s important you consider all of the available options when deciding where to register a trust. The same is true for setting up other offshore entities or choosing where to open accounts.
In short, while a Cayman Island trust may be one of the best options in the world, that doesn’t mean it’s the best option for your objectives or client profile.
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Is a Cayman Trust Right For My Business?
In most cases, a Cayman Island trust will be set up to support wealth management, inheritance planning, and other private interests. However, it is also possible to set up a Cayman Island trust to support business objectives.
That said, there are often a number of additional (important) considerations that go into choosing where to set up a trust for corporate purposes. This includes, among other considerations, the jurisdictions involved, the long-term objectives of the business, and the goals of the ultimate beneficiaries.
Frequently Asked Questions
Below are three of the most common questions that we receive from people looking into a Cayman Island trust. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
What Is a Cayman Trust?
A Cayman trust is often associated with wealth management. However, a Cayman Islands trust can take many forms. Including revocable, discretionary, charitable, accumulation or maintenance, fixed interest in possession, or special purpose. Additionally, Cayman trusts may be set up by either private individuals or corporate entities.
Can I Set Up a Trust In the Cayman Islands?
Yes, non-residents and foreigners can set up a trust in the Cayman Islands. In fact, the Cayman Islands is widely seen as one of the top offshore jurisdictions. Not to mention is regularly used for both commercial and private trusts. Additionally, the Cayman Islands is also regularly used for registering private trust companies and many other offshore structures.
How Much Does It Cost to Set Up a Trust in the Cayman Islands?
The cost to set up a trust in the Cayman Islands can vary widely depending on the type of formation, purpose, assets contributed, and more. Likewise, annual maintenance fees typically start at $5,000 per year for a trust with less than $10,000,000 in assets. However, this also varies depending on any additional support or requirements throughout the year.
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