Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the executed deed and the CIMA filing, including banking and payment rails.
Cayman Islands trust: the Trusts Act and the STAR regime.
A Cayman Islands trust is governed by the Trusts Act (2021 Revision), English-based law with statutory modifications. A STAR trust can serve persons, purposes or both, without a perpetuity limit, provided a trust corporation licensed or registered by the Cayman Islands Monetary Authority (CIMA) is a trustee. An exempted trust can carry a tax undertaking of up to 50 years. We build either Cayman trust from George Town.
30 yrs
of experienceof experience
60+
in-house specialistsspecialists
400+
Licenses obtainedlicenses obtained
Updated · Reviewed by the Prifinance team
Cayman Islands in brief
Cayman Islands trust: English-based law with two regimes written into the statute.
A Cayman Islands trust starts from the Trusts Act (2021 Revision), first enacted as Law 6 of 1967 and revised as at 31 December 2020. An ordinary trust is registered nowhere. Part VI lets its trustees apply at any time to register it with the Registrar of Trusts as an exempted trust, provided no beneficiary, objects of a charitable trust aside, is or is likely to be resident or domiciled in the Islands (s.74(1)). The Registrar's file then stays closed to all but the trustees, persons the trust authorises and the Registrar (s.77(2)). Part VIII sets up the Special Trusts - Alternative Regime (STAR). A STAR trust takes persons, purposes or both as objects (s.99), and a beneficiary has no standing to enforce it; appointed enforcers do (s.100). Trustees in business are CIMA's concern: section 5(2) of the Banks and Trust Companies Act (2025 Revision), the BTCA, bars any trust company from carrying on trust business from within the Islands without its licence.
The trustee sets the budget. CIMA's fee schedule, updated 20 October 2026, prices a full Trust licence at CI$3,500 to apply and CI$90,000 on grant. The annual fee is CI$95,500, whether or not the holder is a foreign bank's subsidiary or branch, and the licensee needs a net worth of at least CI$400,000 (BTCA s.8(1)). So we build a family's own trustee as a private trust company (PTC). CIMA registers it for connected trust business only, at CI$3,500 and then CI$4,000 a year, with a declaration by 31 January each year. An exempted trust adds CI$500 at registration and CI$500 each March (ss.75 and 78). Creditors keep a statutory remedy. A disposition made with intent to defraud and at an undervalue can be set aside by a prejudiced creditor within six years (Fraudulent Dispositions Act (1996 Revision), s.4). A Cayman Islands fund's sponsor can hold the investment manager's shares through such a trust, while the fund registers with CIMA on its own.
A Cayman Islands trust rests on the Trusts Act (2021 Revision). A trust, STAR included, is registered only as an exempted trust, with the Registrar of Trusts; trust companies answer to CIMA.
A PTC costs CI$3,500 to register and CI$4,000 a year, against CI$95,500 a year for a full Trust licence. A transfer made to defraud a creditor at an undervalue stays voidable for six years.
The two builds
A STAR trust, or an exempted trust with a CIMA-registered PTC.
Both builds use the Trusts Act (2021 Revision). The first hands enforcement to named enforcers and needs a trust corporation as trustee. The second keeps an ordinary trust, registers it as exempted and seats the family's PTC as trustee.
A STAR trust with enforcers, or an exempted trust run by the family's own PTC.
01 - STAR TRUST
The Cayman STAR trust
A trust under Part VIII whose written instrument declares that Part VIII applies (s.96(1)). Objects may be persons, purposes or both; enforcers hold the standing; a trust corporation keeps the records in the Islands (s.105(1)).
A trust under Part VIII whose written instrument declares that Part VIII applies (s.96(1)). Objects may be persons, purposes or both; enforcers hold the standing; a trust corporation keeps the records in the Islands (s.105(1)).
- ✓Part VIII declaration, s.96(1)
- ✓Persons, purposes or both
- ✓Enforcers alone have standing
- ✓Trust corporation as trustee
- ✓Outside the perpetuity rule
- ✓No Cayman land, s.109
02 - EXEMPTED TRUST + PTC
Exempted trust, family PTC
An ordinary trust registered with the Registrar of Trusts as exempted, for a family with no Cayman-resident beneficiaries, and a private trust company registered with CIMA as trustee for connected persons.
An ordinary trust registered as exempted for a non-resident family, with a CIMA-registered PTC as trustee.
- ✓Registrar's fee CI$500, then yearly
- ✓Undertaking up to 50 years
- ✓PTC CI$3,500, CI$4,000 a year
- ✓Connected trust business only
- ✓Office at a Trust licensee
- ✓Declaration by 31 January
Reflects the Trusts Act (2021 Revision) and the Private Trust Companies Regulations (2026 Revision) as of 2026. A registered PTC is a trust corporation (s.2), so it can also be a STAR trustee.
Why the Cayman Islands
Six reasons families settle trusts in Cayman.
✓
Purposes and people together
STAR lets one instrument benefit family members and serve purposes, charitable or not, as long as they are lawful and not contrary to public policy (s.99). Uncertainty about its objects does not void it (s.103(1)).Family and purposes in one deed.
✓
Enforcers instead of beneficiaries
Only enforcers appointed under the trust's terms or by the court can enforce a STAR trust (s.100(2)). Unless the instrument shows otherwise, each is deemed to owe a fiduciary duty to act responsibly (s.101(2)).Enforcers hold the standing.
✓
No forced expiry date
STAR trusts sit outside the rule against perpetuities. An ordinary trust whose instrument takes effect on or after 22 August 2024 may disapply the rule too, unless it holds Cayman land; otherwise the period is 150 years.No perpetuity limit for STAR.
✓
A written tax undertaking
An exempted trust can fix today's position in writing: the Financial Secretary's undertaking against future Cayman taxes, valid for up to 50 years from the trust's creation (s.81(2)).Up to 50 years, s.81.
✓
Firewall for heirship claims
Foreign forced-heirship rules, and foreign law that refuses to recognise trusts, cannot make a Cayman trust void or voidable (s.91). A foreign judgment inconsistent with sections 91 or 92 is neither recognised nor enforced (s.93).Foreign heirship rules cannot void it.
✓
Trustees on a public register
CIMA's statistics for the third quarter of 2026 count 137 trust companies and 165 registered private trust companies. Its online search runs by sector, from Trust to Trust (Registered PTC).137 trust companies, 165 PTCs.
How it compares
How the Cayman Islands differ from other trust jurisdictions.
The table sets STAR beside the BVI's Virgin Islands Special Trusts Act (VISTA), Jersey's purpose trust and Guernsey's PTC route. VISTA does one job: directors run a company whose shares the trustee keeps.
Cayman Islands vs other trust jurisdictions
| Feature |  Cayman Islands | Other jurisdictions |
|---|---|---|
| Purpose trusts | STAR: persons, purposes or both | Jersey: valid with an enforcer |
| Company shares | STAR or ordinary trust | BVI VISTA: directors manage |
| Family trustee | Registered PTC: CI$3,500 | Guernsey: GBP 1,475 to apply |
| Trust registration | Only for exempted trusts | Cyprus: notice within 15 days |
Purpose trusts
Cayman IslandsSTAR: persons, purposes or both
Other jurisdictionsJersey: valid with an enforcer
Company shares
Cayman IslandsSTAR or ordinary trust
Other jurisdictionsBVI VISTA: directors manage
Family trustee
Cayman IslandsRegistered PTC: CI$3,500
Other jurisdictionsGuernsey: GBP 1,475 to apply
Trust registration
Cayman IslandsOnly for exempted trusts
Other jurisdictionsCyprus: notice within 15 days
Country by country
| Country | Instrument | Trustee regulation | Notes |
|---|---|---|---|
| Cayman Islands | STAR trust - Part VIII | CIMA licence or registered PTC | No perpetuity limit |
 BVI | VISTA trust - 2003 Act | BVI trust licensee or PTC | Shares kept, directors manage |
 Jersey | Purpose trust - 1984 Law | JFSC trust company business | Enforcer required, Art. 12 |
 Guernsey | Guernsey trust | GFSC fiduciary licence | PTC permission GBP 1,475 |
Cayman IslandsInstrumentSTAR trust - Part VIII
Trustee regulationCIMA licence or registered PTC
NotesNo perpetuity limit
BVIInstrumentVISTA trust - 2003 Act
Trustee regulationBVI trust licensee or PTC
NotesShares kept, directors manage
JerseyInstrumentPurpose trust - 1984 Law
Trustee regulationJFSC trust company business
NotesEnforcer required, Art. 12
GuernseyInstrumentGuernsey trust
Trustee regulationGFSC fiduciary licence
NotesPTC permission GBP 1,475
Before you establish
What a Cayman Islands trust actually requires.What a Cayman Islands trust requires.
The Trusts Act asks for little paperwork and a good many decisions. These ten are settled before the deed is signed or any asset moves.
01
Trust instrument - a written deed or a will; a STAR trust must declare in it that Part VIII applies (s.96(1)).
02
Governing law - an express choice of Cayman law is valid, effective and conclusive regardless of any other circumstances (s.89(2)).
03
Trustee - trust business from the Islands needs a CIMA licence or PTC registration; STAR needs a trust corporation as a trustee (s.105(1)).
04
Enforcers - appointed under the STAR instrument's terms or by the court, the only persons with standing to enforce it (s.100(2)).
05
Settlor's briefing - a trustee who takes a STAR settlement without checking the settlor understands who can enforce commits an offence (s.107).
06
Reserved powers - keeping powers to revoke, amend, direct the trustee on trust property or change trustees leaves the trust valid (s.14(1)).
07
Residence test - an exempted trust's beneficiaries do not, and are not likely to, include anyone resident or domiciled in the Islands, charitable objects aside (s.74(1)).
08
Perpetuity clause - 150 years from the effective date, or an opt-out in instruments effective from 22 August 2024 (Perpetuities Act ss.5, 19).
09
Trustee records - identity records (s.6A) and accounts kept at least five years (s.27A), produced to a competent authority within 48 hours.
10
Clean funding - a transfer made with intent to defraud and at an undervalue is voidable by a prejudiced creditor for six years.
01
Written deed or will.
02
Express Cayman law clause.
03
Licensed trustee or PTC.
04
Enforcers for STAR.
05
Settlor briefed, s.107.
06
Reserved powers drafted.
07
Non-resident beneficiaries.
08
Perpetuity clause chosen.
09
Records kept five years.
10
Clean source of funds.
Reflects the Trusts Act (2021 Revision), Perpetuities Act (2025 Revision), Trusts (Transparency) Regulations, 2019 and Fraudulent Dispositions Act (1996 Revision) as of 2026.Trusts Act (2021 Revision) and related Acts, as of 2026.
Verify it yourself
Official sources
Regulator pages, legal texts and public registers the figures on this page are based on.
- LawTrusts Act (2021 Revision) - Cayman Islands Legislationlegislation.gov.ky
- LawBanks and Trust Companies Act (2025 Revision) - Cayman Islands Legislationlegislation.gov.ky
- RegulatorCayman Islands Monetary Authority - Trusts: licence and registration categoriescima.ky
- RegisterCayman Islands General Registry - Trusts Register: types of trustsciregistry.ky
- FeesCayman Islands Monetary Authority - Fee schedule updated 20 October 2026cima.ky
How it works
From the first brief to the deed and the CIMA filing.
01
Objects and residence
Family, assets and residences mapped. Persons, purposes or both: that one answer decides between STAR and an ordinary trust.Persons, purposes or both.
02
Trustee route
A licensed trust company chosen, or a PTC incorporated in the Islands and registered with CIMA under the PTC Regulations.Licensee or PTC.
03
Drafting
Deed, enforcer clauses, reserved powers and the perpetuity clause drafted; the settlor briefed in writing on who may enforce.Deed and enforcers.
04
Settlement
Deed executed and stamped (CI$40 for a declaration of trust), assets transferred, exempted-trust documents lodged with the Registrar.Stamped and lodged.
05
Annual cycle
PTC declaration and CI$4,000 fee by 31 January, the exempted-trust fee each March, records ready for a 48-hour request.January and March deadlines.
Quick facts
StatuteTrusts Act (2021 Revision)
Special regimeSTAR - Part VIII
Trustee regulatorCIMA
RegisterExempted trusts only
Duration150 years or opt-out
Exempted trustCI$500 + CI$500 a year
PTCCI$3,500 + CI$4,000 a year
Tax undertakingUp to 50 years
We plan the timetable in weeks, set mostly by the trustee's onboarding, and confirm each registration date with CIMA or the Registrar when the file goes in.
On the ground in the Cayman Islands
Run from our George Town office.
Prifinance - Cayman Islands
George Town · Grand Cayman
George Town, Grand Cayman
01
Regime choice
STAR, exempted or ordinary: decided on who should be able to enforce the trust and on where the family lives.STAR, exempted or ordinary.
02
Trustee side
A CIMA-licensed trust company engaged, or the family's PTC incorporated with a natural-person director and an office at a licensee.Licensee or family PTC.
03
Deed and enforcers
The instrument written under the Trusts Act, with the Part VIII declaration, enforcer clauses and reserved powers fitted to this family.Part VIII clauses written.
04
Filings and records
PTC registration and the yearly declaration with CIMA, exempted-trust lodging with the Registrar, STAR records kept in the Islands.CIMA and Registrar filings.
We also have offices in
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
Dubai
UAE
33 Level, Al Saqr Business Tower
London
United Kingdom
7 Bell Yard
Madeira
Portugal
Rua da Alegria 31, 1F
Istanbul
Turkey
Perpa Ticaret Merkezi, A Blok
Good to know
Taxation of Cayman Islands trusts.
At home in Cayman, a trust meets stamp duty and Registry fees rather than tax. The result that matters is decided in each country where the family lives.
No local tax on trusts
The General Registry states that there are no taxes on trusts in the Cayman Islands and no restrictions on the accumulation of income.No Cayman tax on trusts.
The s.81 undertaking
It covers trust property, income, trustees and beneficiaries against later Cayman taxes. Under s.82 it can be sought on an approved draft if the trust follows within 28 days, or longer if the Registrar allows.Up to 50 years.
Resident beneficiaries excluded
A beneficiary resident or domiciled in the Islands pays Cayman tax as if the undertaking had never been given (s.81(3)). The exempted route assumes a non-resident family.Residents taxed regardless.
Stamp duty on deeds
CI$40 on a declaration of trust and CI$50 on other trust deeds, which the General Registry's schedule shows as US$49 and US$61.CI$40 or CI$50.
Records and disclosure
The trustee keeps identity and accounting records (s.6A, s.27A) and tells a bank or other financial business that it deals in its capacity as trustee (s.6A(3)).Identity and accounts kept.
Home countries decide
Cayman adds no tax of its own, so the settlor's and beneficiaries' home rules set the result. We model each relevant country before the deed is signed.Home rules decide.
Tax summary
Cayman tax on trustsNone, per the General Registry
UndertakingExempted trusts, up to 50 years
Resident beneficiariesTaxed, s.81(3)
Stamp dutyCI$40 or CI$50 per deed
Decisive factorThe family's home countries
*As of 2026 per the Trusts Act (2021 Revision) and the General Registry's fee schedule from 1 January 2025. Home-country outcomes are modelled per structure.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Cayman Islands structure, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a working trust.
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Cayman Islands · Trusts Act
Set up your Cayman Islands trust with expert support.
Full-service assistance - from the STAR or exempted-trust decision to the deed, the PTC filing and the trustee's records - run through our George Town office.
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Cayman Islands trusts: the questions settlors ask.
What is a Cayman STAR trust?+
A Cayman STAR trust is a trust under Part VIII of the Trusts Act whose instrument declares that Part VIII applies. Its objects may be persons, purposes or both, only its enforcers can enforce it, and the rule against perpetuities does not apply to it.
Does a Cayman trust have to be registered?+
No. A trust, STAR or ordinary, is registered nowhere unless its trustees seek exempted status. Registration with the Registrar of Trusts exists for exempted trusts only, at CI$500, and is the gateway to the s.81 tax undertaking.
Who may be the trustee?+
A company carrying on trust business from within the Islands needs a CIMA licence (BTCA s.5(2)), unless it is a private trust company registered for connected trust business (PTC Regulations reg 4(1)). A STAR trust must also have a trust corporation among its trustees.
How long does it take to set up a Cayman Islands trust?+
Weeks, as we plan it: an ordinary or STAR trust needs no registration, so drafting and the trustee's onboarding set the pace. A PTC or exempted-trust filing adds a step whose date we confirm with CIMA or the Registrar. Licensing a new trust company is slower: CIMA's FAQ gives 6-8 weeks after a complete application.
What does a Cayman Islands trust cost?+
In official fees, the trust itself costs CI$40 or CI$50 of stamp duty on its deed, plus CI$500 to register and CI$500 each March if it is exempted. A family PTC adds CI$3,500 at registration with CIMA and CI$4,000 a year (US$1.00 = CI$0.82). Our fee is quoted in writing after a free assessment.
Can the settlor keep control?+
Yes, within section 14(1): reserving powers to revoke or amend the trust, to direct the trustee on buying or selling trust property, to add or remove trustees and beneficiaries or to change the governing law does not invalidate it. A trustee who acts on those powers is not in breach of trust (s.15).
What is an exempted trust?+
An exempted trust is a trust, STAR or ordinary, that the Registrar of Trusts has registered because its beneficiaries, objects of a charitable trust aside, are not and are not likely to be resident or domiciled in the Islands (s.74(1)). Its documents are closed to public inspection, and the Registrar may call for accounts and minutes (s.77).
Can a creditor undo a transfer into the trust?+
Yes, under the Fraudulent Dispositions Act (1996 Revision): a disposition made with intent to defraud and at an undervalue is voidable by a prejudiced creditor (s.4(1)). The creditor must prove the intent and sue within six years of the transfer, and the court sets aside only what the debt requires (s.6).
STAR or the BVI's VISTA trust?+
For one BVI company run by its own directors, VISTA is the tighter fit: the BVI Act exists so that the trustee can keep the shares indefinitely and leave management to the directors (s.3). STAR is wider, taking persons and purposes with no perpetuity limit, though no Cayman land may be subject to it (s.109).
Why Prifinance for a Cayman Islands trust?+
We draft the deed under the Trusts Act, set up the trustee side, from a licensed trust company to the family's own PTC and its CIMA filing, and keep the January and March deadlines on our calendar. The work runs from our George Town office.
What is STAR?+
Persons or purposes, enforced by enforcers.
Registered?+
Only exempted trusts, CI$500.
Who is trustee?+
CIMA licensee or registered PTC.
How long?+
Weeks; ordinary trusts need no registration.
Cost?+
PTC CI$3,500, then CI$4,000 a year.
Settlor control?+
Section 14(1) powers allowed.
Exempted trust?+
Non-resident family, registered, undertaking.
Creditors?+
Fraud at an undervalue: six years.
STAR or VISTA?+
VISTA for one BVI company.
Why you?+
Deed, trustee and filings in one file.
Client notes
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Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of the Cayman Islands Monetary Authority (CIMA) or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.