Understanding the 2024 Cayman Islands legislation on perpetuities

The Cayman Islands has long been recognised as a premier offshore jurisdiction, offering a favourable legal framework for trust and estate planning. After more than ten years of planning significant legislative changes were introduced in 2024 regarding perpetuities, removing the restriction on how long certain legal instruments, such as trusts, could last.

Historically, trusts governed by Cayman Islands law were limited to a lifespan of 150 years. However, the 2024 legislation removes this restriction, allowing trusts to continue indefinitely. This gives clients greater flexibility for estate and tax planning and ensures that the assets can remain protected within a trust for generations to come.

For trusts established before 22 August 2024, trustees, protectors, enforcers, settlors, or anyone with powers or beneficial interests can petition the Cayman Islands court to remove the perpetuity period. This removal is possible if it aligns with the beneficiaries' best interests.

The Cayman Islands' commitment to maintaining and enhancing its status as a premier offshore jurisdiction is further solidified by these recent changes. This update will have a profound impact on our client structures, underscoring the importance of robust legal frameworks in estate planning.

How can Ocorian help?

At Ocorian, we are eager to collaborate with advisors and clients that wish to assess their existing assets, future plans, family commitments, and structures. Together, we will determine if removing the perpetuity period through a Cayman Islands court application would best serve the long-term objectives of our clients.

Contact our expert team to find out.