From OFFTAX

Legal Framework

The Cayman Islands Ordinary Trust is governed by the Cayman Islands Trust Law as amended.

Registration

There is no requirement for Cayman Islands Ordinary Trusts to be registered.

Settlor

The Settlor does not need to be a permanent resident of Cayman Islands.

Beneficiary

The Beneficiary does not need to be a permanent resident of Cayman Islands.

Trustee

It is advisable to use a regulated Trustee company even though individual trustees are allowed.

Protector

The appointment of a Protector is optional.

Perpetuity Period

The maximum duration of a Cayman Islands Ordinary Trust is 150 years.

Property

There is no restriction on the property of a Cayman Islands Ordinary Trust.

Confidentiality

As there are no registration requirements for the Cayman Islands Ordinary Trust the details of the Settlor and Beneficiaries are not disclosed to any person other than the Trustee.

Taxation

The Cayman Islands Ordinary Trust is exempt from taxation in the Cayman Islands.

Asset Protection

A Cayman Islands Ordinary Trust will not be void or voidable in the event of the Settlor’s bankruptcy or liquidation thus achieving asset protection from creditors. However, the Trust may be set aside by its Creditors If within 6 years it is proven to the satisfaction of a Cayman Islands court that the trust was made by the Settlor with the intent to defraud its creditors.

Reporting Requirements

There are no reporting requirements for a Cayman Islands Ordinary Trust.

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