Cayman Islands abolishes perpetuity rule in legislation

The Cayman Islands has enacted new legislation to remove the rule against perpetuities for ordinary trusts, allowing these to last indefinitely. This adjustment does not affect Cayman Islands STAR trusts, which were already exempt.

Previously, Cayman Islands trusts were constrained by a 150-year perpetuity period, mandating distribution of trust assets within this time frame. The Perpetuities (Amendment) Act, 2024, which was gazetted on 22 August 2024 and received Royal Assent on 15 August 2024, eliminates this period for new trusts, excluding those holding Cayman Islands land.

Although not retroactively applied, existing Cayman law trusts can seek Grand Court approval to extend their duration indefinitely. The Perpetuities Act also permits foreign trusts (non-Cayman trusts) of unlimited duration to adopt Cayman Islands law.

This reform enhances Cayman Islands' trust law, catering to the needs of global clients and offering significant advantages for long-term succession planning.

How Ogier can help

For more information on the Perpetuities (Amendment) Act, 2024, including how this will impact an existing trust, contact Ogier's top-tier Trust Advisory Group.

Private clients need trusted advisers. The strength of our team is in the quality and breadth of experience of our lawyers, who work together to deliver a discreet and professional service. Ogier's Trusts Advisory Group draws together experts from different disciplines and locations to provide a seamless contentious and non-contentious advisory service, which also includes relevant corporate support.

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Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

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