Cayman Offshore Trust
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Cayman Offshore Trust

The Cayman Islands is a favorable jurisdiction to set up your offshore trust in for many reasons. Setting up an offshore trust in the Cayman Islands offers investors the opportunity to place their assets into a reliable structure that protects them from risk. A Cayman Islands offshore trust is one of the most convenient asset protection techniques available for investors.

For more information on Cayman trusts and to proceed with opening one with DeltaQuest, please view our Cayman Islands Trust Formation page.

Alternatively, to find out how DeltaQuest can assist you with your trust needs, please Contact Us.

What constitutes a Cayman Islands Trust?

In order for a Cayman Islands trust to be established, it must comply with the Cayman Law in accordance with the Trust Law 2001 (Revision). Although the Cayman Islands Trust Law is based largely on the English Trustee Law 1925, there are a number of key differences. For example, the Cayman Islands Trust Law excluded forced heirship provisions, which has enhanced the attractive nature of Cayman Islands trusts. In addition, the Cayman Islands introduced the perpetuities law 1995, which increased the perpetuity period to 150 years, unlike many other jurisdictions. Once a trust is formed in the Cayman Islands, it does not take on its own judicial personality, as it is not a legal entity in its natural form. It is defined as a fiduciary relationship between the settlor and the trustee for the sole benefit of the beneficiaries.

Cayman Islands Trust Formation

When setting up a trust in the Cayman Islands, it will need to have several key components in order to legally come into effect. The principal elements of trust formation are the ‘settlor’, and the ‘trustee’. The settlor is the individual who forms the trust and transfers his personal assets into a trust, whilst the trustee is nominated to administer the trust on behalf of the settlor. The trustee must be an adult of sound mind and have due diligence when administering the Trust Deed. Other components of a trust are the ‘beneficiary’ and the ‘protector’. The beneficiary is the person or persons who will ultimately benefit from the formation of the trust, whereas the protector’s purpose is to monitor the trust in order to ensure that it is administered in compliance with the trust’s Deed.

Why form a Cayman Offshore Trust

There are a number of reasons why creating an offshore Cayman Islands trust is advantageous:

  • High quality asset protection tool
  • An effective tax planning solution
  • Offers a solid internal legal and financial infrastructure for offshore investors
  • The Cayman Islands is known for its reliable and legitimate legal system
  • Offers a wealth of professional services and skills
  • Avoidance of forced heirship rules
  • High levels of security
  • A Cayman trust benefits from no taxation on profits, income or dividends
  • No capital gains taxes on Cayman trusts
  • No minimum capital is required to set up a trust
  • Under the Perpetuities law 1995, trusts in the Cayman Islands can exist for up to 150 years
  • No exchange control regulations in place
  • No probate
  • High levels of asset protection and wealth management

Set up a Cayman Trust with DeltaQuest

DeltaQuest have a wealth of experience in offshore trust formation, and can assist you with your entire offshore Cayman Islands trust formation needs. Our professional consultants will assist you in setting up your trust in compliance with the Trust Law 1967. We offer a range of services related to offshore trust formation, and will be on hand to assist you throughout the entire process of setting up and administering your offshore trust.

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