Cayman Islands: Types of Company
Trust law in the Cayman Islands is based on English trust law, with some recent modifications in the Trusts Law 1996 and the Trust Law (2001 Revision). Other recent changes include the Perpetuities Law 1985 which increased the perpetuity period to 150 years, the Special Trusts (Alternative Regimes) Law which introduced purpose trusts, the Trust (Foreign Element) Law 1987 which provided inter alia for the importation and exportation of trusts, and the Fraudulent Dispositions Law 1989 which includes specific asset protection provisions. See Offshore Law for a fuller description of the legal regime for trusts. Appeal is to the Privy Council.
Trusts do not have to be registered; a company offering trust services must obtain a licence under the Banks and Trust Companies Law 1995; individuals do not have to do so. See Offshore Business Sectors: Trust Management
Trusts can be exempt, like companies and limited partnerships, but must then be registered with the Registrar of Trusts, and pay a fee of KYD500. The Governor gives a 50-year undertaking to the Trustees that no taxation will be imposed on the trust.
The Hague Convention has not been implemented in Cayman. Specific provisions exist for the non-recognition of foreign judgements and the exclusion of forced heirship.