Trusts are excellent estate planning tools as they combine various benefits, and one of the most important is that you can have someone else, the trustee, manage your personal assets, and if anything happens to you, those assets will not be touched.
One of the best jurisdictions to open a trust is the Cayman Islands. The procedure is not complicated, and the services you can benefit from here are exceptional. So, if you want to create a trust, here is how to do it in the Caymans.
Decide on the type of trust
The local legislation allows for various types of structures, so before you go ahead and create a trust in the Cayman Islands, consult a specialized firm, such as BridgeWest Cayman Islands, to ensure you made the proper decision.
For example, the exempt trust is the most appreciated by foreigners because of the tax advantages it offers, such as a 50-year exemption on income and capital gains levies.
However, there are other types of trusts available, each with its benefits, so getting information about each one of them is essential to ensure you made the right choice for you and your family.
Appoint the trustee and nominate the beneficiaries
Before registration, it is important to establish who is who. From this point of view, you need to appoint a trustee. Luckily, in the Cayman Islands, you will find licensed trustees that can manage the assets you entrust them in a professional manner.
Then, you need to decide who the beneficiaries are. Or you can name one beneficiary only, and that can be you. At this stage, you must also provide the required information about yourself as a settlor.
An interesting fact about the Cayman Islands is that you can also appoint a protector if you want to have someone making sure the assets are properly administered.
Have the trust deed drafted and registered
Trusts are created through a deed that needs to be registered with the Register of Trusts if the beneficiaries are not Cayman Islands citizens. During this process, the Registry will also conduct the Anti-Money Laundering and Know-Your-Client checks, so make sure to supply all the information required.
Since this aspect can be tricky, working with a professional company can ease the entire procedure by helping you gather and provide the necessary information.
Asset transfer
Once the trust is registered, you can go ahead and transfer the assets to the trustee. These can be money, properties, works of art, and even company shares. You decide the goods that you want to keep separated from other belongings.
These are the main steps to complete to open a trust in the Cayman Islands. The procedure is not complicated and takes up to 2 months to complete with all due diligence checks to perform. However, you can reduce this timeframe if you work with a specialist who knows how to guide you on a structure that is easier to set up and can even offer more benefits than you originally thought.