Cayman Islands Private Trust

A private trust company is a limited company whose sole purpose is to act as a trustee for a specific trust or a related group of trusts. The regulation of private trust companies in Cayman is governed by the Banks and Trust Companies Law (“BTCL”) and the Private Trust Companies Regulations (“PTCR”). The general rule under the BTCL is that no person may carry on the business of acting as trustee from within Cayman without possessing a trust licence issued by the Cayman Islands Monetary Authority (“CIMA”). Under the PTCR, a private trust company may obtain an exemption from this licensing requirement provided it meets certain specified criteria which are explained below.

Cayman Islands Private Trust Key Features

  1. A minimum paid up share capital is required in such amount as will enable the Restricted Trust licensee to maintain a net worth of CID20,000 (approximately USD25,000).
  2. Each licensee is required to have at least two directors, at least one of whom is required to have sound professional knowledge of and experience in trust business.
  3. Each Trust Company is required to have a place of business in the Islands.
  4. Every licensee incorporated under the Companies Law (as revised) is required to have its accounts audited annually by an auditor approved by CIMA and is required to forward its audited accounts to CIMA within three months of the end of its financial year.

Cayman Islands Private Trust Legal requirements

Cayman Islands Private Trust

Corporate Details

General

  • Type of entity

Private Trust

  • Change of Domicile permitted

Yes

  • Registered Office

Yes

  • Duration

100 Years

  • Corporate Officers

Minimum of 2

  • Restriction on Investment of Trust asset

No

  • Exchange control

None

  • Succession

As per Trust Deed

  • Settlor

Must be non-resident of Cayman Islands

  • Property

No property situated in Cayman Islands can be part of the Trust asset

  • Forced heirship applicable

No

Trust asset

  • Restriction on type/amount

No, except property situated in Cayman Islands

 Trustee   

  • Minimum number

1 if corporate and 2 or more if not corporate

  • Qualification

Minimum one Cayman Islands resident

Accounts

  • Requirement to file

No

  • Publicly accessible

No

 Cayman Islands Private Trust Tax Treatment

Cayman Islands Private Trust is not subject to tax on foreign sourced income.

Duration for Set up

6- 8 Weeks

Cayman Islands Private Trust Distinctive Benefits

  • Establishing a PTC is the additional element of control which the PTC can provide.
  • The settlor and/or his or her family could be the shareholder or shareholders
  • Cayman Islands Private Trust is not subject to tax on foreign sourced income.
  • Cayman trusts may be discretionary or fixed interest in nature.

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