Cayman Islands STAR trusts—management

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Practice notes

Cayman Islands STAR trusts—management

Copyright © 2025 LexisNexis

Produced in partnership with Mourant Ozannes and Carey Olsen

Practice notes
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Part VIII of the Trusts Law (2020 Revision)

The Cayman Islands provides for a unique form of non-charitable purpose trust referred to as a ‘STAR Trust’. The legislation which allowed for STAR Trusts to be established in the Cayman Islands is the Special Trusts (Alternative Regime) Law 1997, hence the acronym ‘STAR’. This legislation has been incorporated into the Trusts Law (2020 Revision) (Trusts Law) at Part VIII.

Management and administration of STAR trusts

The administration of a STAR trust will not differ vastly from that of an ordinary Cayman Islands trust; however, there are certain unique features of STAR trusts set out below.

New STAR trusts

It is important to note that any prospective trustee of a STAR trust must take steps to inform any prospective settlor that it is the enforcer who is the only person with standing to enforce the terms of the trust and not the beneficiaries. Failure to do so is an offence in the Cayman Islands and may result in liability on summary conviction to a fine of CI$10,000

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