STAR TRUST
STAR Trust
Special Trusts (Alternative Regime). A unique regime: it can have non-charitable purpose objectives, and not only human beneficiaries. Used for orphan structures and special purposes.
Unique05 · Trusts Act · Privy Council
Cayman Trusts —
capital protection
for generations.
The Cayman Islands is one of the leading jurisdictions for trusts: modern legislation (Trusts Act, STAR Trust regime), a specialized Financial Services Division of the Grand Court, appeals to the Privy Council. Asset protection, estate planning, charity.
Types of Trusts
Six regimes —
for any scenario
From the classic discretionary trust to the unique STAR regime — Cayman offers the widest range of trust instruments in the world. Each with its own advantages for specific tasks.
RESERVED POWERS
Reserved Powers Trust
The settlor retains certain powers — investment decisions, appointment of the protector, changing beneficiaries — without the risk of the trust being declared invalid. A psychological bridge for those transferring assets into a trust for the first time.
Settlor controlEXEMPTED TRUST · TEC
Exempted Trust
Can obtain a Tax Exemption Certificate (TEC) from Cabinet — a guarantee that any future Cayman Islands taxes will not apply to the trust. Term: up to 50 years. Often used for Unit Trusts (funds).
50 years TECPTC · PRIVATE TRUST COMPANY
Private Trust Company
Not the trust itself, but a legal entity that acts as trustee for one or more family trusts. A PTC conducting only "connected trust business" is exempt from licensing requirements.
Family-controlFOUNDATION COMPANY
Foundation Company
An independent legal entity: it owns assets, enters into transactions, and is liable for its obligations. Unlike a company, it can exist without members and shareholders, and unlike a trust, it can act in its own name. Beneficiaries are not mandatory (purpose foundation). Used for DAOs, charitable and orphan structures.
DAO · F.O.STAR Trust in detail
A unique regime —
not only for people
The STAR Trust was introduced by the Special Trusts (Alternative Regime) Act 1997 and is now contained in Part VIII of the Trusts Act. It is the only regime in the world that allows the creation of non-charitable purpose trusts — trusts for specific purposes, without human beneficiaries.
The main application is "orphan structures": a STAR Trust owns the shares of a PTC (Private Trust Company), and the PTC is the trustee of family trusts. The PTC's shares are not part of the founder's estate, ensuring complete "orphaning".
- PPurpose without beneficiaries
You can create a trust for a purpose (for example, "to support a specific project") rather than for people. Unique flexibility for DAOs and philanthropic vehicles.
- EEnforcer instead of a beneficiary
Enforcement of the trust is ensured by an enforcer, a specially appointed person. This could be a lawyer, a protector, or even an AI consortium.
- OOrphan for the PTC
The most popular application: STAR owns the PTC, the PTC is trustee of the family trusts. Complete structural independence from any individual.
- ∞Without the rule against perpetuities
It can exist for as long as desired (unlike ordinary trusts with a 150-year limit). Ideal for long-term family wealth.
STAR · technical parameters
- Governing act
- Trusts Act, Part VIII
- Beneficiaries
- Optional
- Purposes
- Charitable + non-charitable
- Enforcer
- Mandatory
- Trust lifespan
- No perpetuity limit
- Trustee requirement
- Licensed trust company
- Tax
- 0% (Cayman neutral)
- Confidentiality
- Full (not a public register)
Application
What
Cayman trusts solve
Trusts are not just about "hiding assets". They are a strategic planning tool: inheritance across generations, protecting assets from business risks, charity, company management.
Estate planning
Transferring assets across generations without disputes over the will, inheritance taxes, or loss of confidentiality. The settlor's letter of wishes sets soft guidelines for the trustee without legal restrictions.
Asset protection
Assets in the trust are separated from the settlor's personal estate. Protection against business creditors, judgments from other jurisdictions, and reputational claims. Statutory protection against external claims is enshrined in the Cayman Islands Trusts Law.
Charity
A charitable trust or Foundation Company for systematic philanthropy. A STAR Trust is suitable for targeted programs: scientific awards, environmental projects, preservation of cultural heritage.
Holding structures
The combination of a Private Trust Company (PTC) and a STAR Trust forms a stand-alone structure for owning family assets. Confidentiality, protection against inheritance disputes, flexibility in management — the settlor can remain a director of the PTC.
Management of large private wealth
Management of an investment portfolio within the trust. The trustee's investment decisions, regular reporting, tax transparency for beneficiaries in their countries of residence.
Web3 / DAO
A Foundation Company as a legal wrapper for a DAO. A STAR Trust for holding the protocol's token treasury. Clear rights and obligations of participants, protection from personal liability.
Creating a trust
4 phases —
from consultation to Trust Deed
Creating a professional trust requires careful preparation. The realistic time frame is 4–8 weeks, depending on the complexity of the structure and the number of beneficiaries.
1
Phase I · Weeks 1–2
Consultation
Analysis of goals, assets, family structure. Selection of the trust type, jurisdictions, trustee and protector.
2
Phase II · Weeks 2–4
Trust Deed
Drafting the trust declaration: beneficiaries, distribution rules, powers of trustee and protector, governing law clauses.
3
Phase III · Weeks 4–6
Settlement & Funding
Formal establishment of the trust (signing), transfer of assets, initial settlements. Letter of Wishes from the founder.
4
Phase IV · ongoing
Ongoing support
Annual accounts, distribution applications, changes of beneficiaries, investment decisions. We can act as PTC or trustee.
Thinking about a trust?
A confidential consultation
A partner lawyer will discuss your situation under an NDA. We'll explain which type of trust suits you, which assets you can place into it, what the costs are, and how the structure works in your tax residence.