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Cayman Islands STAR trusts: Part VIII Trusts Act guide for practitioners: features, cy-près, enforcer, trustee obligations, restrictions and common structuring uses

Practice notes
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For general information about the Cayman Islands, see Practice Note: Private Client—Cayman Islands—Q&A guide for an overview of the jurisdiction.

Part VIII of the Trusts Act

The Cayman Islands recognises a distinctive form of non-charitable purpose trust known as a ‘STAR Trust’. The framework enabling STAR Trusts was introduced by the Special Trusts (Alternative Regime) Act 1997, which is the origin of the ‘STAR’ acronym. That regime is now set out in Part VIII of the Trusts Act (2021 Revision) (the Trusts Act). This alternative regime was incorporated at Part VIII of the Trusts Act (2021 Revision), referred to here as the Trusts Act. Under section 96(1) of the Trusts Act, a STAR trust can only be established by a written instrument that expressly states Part VIII of the Trusts Act applies. An illustrative clause might read: ‘It is intended that this Trust and every trust, power, and provision contained in this instrument shall be subject to Part VIII of the Trusts Act (2020 Revision) as revised from time to time.’

Characteristics of STAR trusts

The STAR trust is widely regarded as the most adaptable and dynamic type of trust available in the Cayman Islands...

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Web page updated on 21/05/2026

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