Trust Cayman 2022 - Issue 3

Page 1




Structuring options available in Cayman



Why high net wor th individuals choose Cayman


Alan Milgate

Tamara Corbin

Amanda Bako

Philippa Stokes







On behalf of STEP Cayman Islands welcome to the third edition of the 2021/2022 STEP Cayman magazine. We have had a remarkable 12 months since the last issue, and in general worldwide. The financial services industry and more specifically the trust industry in the Cayman Islands has continued as a pillar to demonstrate continued resilience and longevity. The backdrop here against the COVID-19 pandemic, has meant that both Government and Financial Services Firms have been navigating through challenging times, and with experience being the great teacher there is now focus on what the future may look like for the trust industry. Resonating throughout the enclosed pages is the depth and breadth of the Cayman Islands advisory and professional service providers, who consider innovative products, offerings, global movement of high net worth families and some of the most topical issues and modern considerations such as virtual assets and ESG. Cayman’s holistic offerings continue to attract high net worth families and their family offices, and the ability of the Government to react early in response to the pandemic, including provisions for global citizens and residency, have combined allowed Cayman

to remain at the forefront as a jurisdiction for substance, and the establishment and maintenance of sophisticated structures, as showcased within. Our STEP Cayman inaugural international wealth structuring conference was held in 2018, and at that time it was not entertained that perhaps just a few years into our in-person international conference offering we would have to adapt to a hybrid variation of the same, starting with a series of webinars in January of 2021. We hope that you will enjoy reading this issue of the STEP Cayman Magazine, and that you will join us for our future wealth structuring conferences when details are announced.


TRUST CAYMAN / 3 General enquiries: Bernadette Carey +1 345 749 2025


STEP Cayman Islands Published by Sidekick Business Development Limited and Allies Group on behalf of STEP Cayman

On Your Side

On Your Side On Your Side +44 7743 910 347

6 Regulated and robust

8 An innovative enterprise +44 191 500 7860 Photography: Thomas Williamson Guy Waller

All contents copyright ©2021 STEP Cayman All rights reserved. While every effort is made to ensure accuracy, no responsibility can be accepted for inaccuracies, howsoever caused. No liability can be accepted for illustrations, photographs, artwork or advertising materials while in transmission or with the publisher or their agents. Reproduction in whole or in part is strictly prohibited without written permission from the publisher. All information is correct at time of going to print December 2021. This publication and its content is paid for and controlled by STEP Cayman Islands. STEP’s editorial team, including the STEP Journal Editorial Board, has not been involved in the production of this publication. The views expressed in this publication are not necessarily those of STEP and readers should seek the guidance of a suitably qualified professional before taking any action or entering into any agreement in reliance upon the information contained in this publication. Whilst the publishers have taken every care in compiling the content to ensure accuracy at the time of going to press, neither they, nor STEP accept liability or responsibility for any loss caused by any reliance on the content of any such advertisement. ISSN 2633-3015

10 Reflections on relocation

18 Setting up a Cayman based family office

22 In the interests of justice


26 Healthcare in Cayman

28 Five star success

40 The future of the trusts industry

32 Where there’s a will, there’s a way

46 Attracting investment in Cayman

52 Colourful cuisine

54 Education is key



Regulated and robust By Robert Lindley and Wesley O’Brien, Conyers, and Val Mullen, Zedra.


rustees and corporate service providers in the Cayman Islands continue to face increased regulatory burdens. Robert, Wesley and Val discuss how the Cayman Islands is weathering new challenges such as the proposed global tax, economic substance and beneficial ownership requirements, international exchange of tax information, and continuing to offer a robust and modern structuring environment for private clients. In 2000, STEP members were called to an emergency meeting to warn of significant changes and challenges that were forthcoming due to international pressure from the OECD, an organisation that had been in place since 1961 but which had little impact on our industry at the time. We were advised that we would need to implement significant changes to our business practices to comply with know-your-customer (KYC) commitments which the Cayman Islands’ Government had made. Further, we were warned that the Cayman Island’s Regulator would be strengthened to enforce these requirements, and service providers could start to expect rigorous inspections and penalties for failure to comply. While KYC requirements may sound familiar and rudimentary now, back in 2000 it sounded like the death knell. Trustees and private client practitioners questioned whether an industry with privacy and confidentiality at the forefront could survive such a dramatic shift. Having witnessed clients liquidate all their investments, buy gold and stockpile food in preparation for Y2K, it seemed very unlikely that they would consent to having their

Robert Lindlay

Wesley O’Brien

“While the pace of change may feel daunting, in order to succeed in this industry, both service providers and individual practitioners must have the capacity and skills to adjust to new and changing regulation.” 6 / TRUST CAYMAN

Val Mullen


private information collected and stored on the same computers we thought were going to bring the world to a crashing halt on 1 January 2000. Much like with Y2K, it is clear that the fears of a KYC-induced doomsday were also unfounded. With a great deal of hard work, the trust industry in Cayman adapted and is now stronger for it. Fast forward to 2021 and we have survived many hurdles since then, including ever-evolving guidance notes from Cayman’s Regulator, anti-money laundering and proceeds of crime legislation, automatic exchange of information agreements in the form of FATCA and CRS, beneficial ownership reporting, data protection and economic substance laws. Each regulatory regime has presented its own set of challenges and may have appeared, to the pessimists amongst us, as signaling the end. However, the industry and its service providers in Cayman have continued to evolve and adapt and it is now trite to observe that we face increased regulatory burdens. To borrow from another overused expression, this is indeed our new normal (as it has been for some time). While the pace of change may feel daunting, in order to succeed in this industry, both service providers and individual practitioners must have the capacity and skills to adjust to new and changing regulation. This environment brings with it opportunities too. The Cayman Islands has positioned itself as a leading destination for trusts, reinsurance and mutual funds. With the jurisdiction having been at the forefront of regulatory change for many years, it is well-positioned to adapt to further changes on the horizon, such as that posed by recent agreements with regard to a proposed global minimum tax.

to the framework, however, it should be noted that this does not necessarily mean that a corporate tax rate will be implemented in the Cayman Islands. It is anticipated that many of the entities and structures which utilise Cayman for their planning will be out-of-scope of the minimum tax, because such structures already satisfy their tax obligations (at rates above 15%) in the jurisdiction of their beneficial owners and/or where they earn their profits. Those who see the ‘global minimum tax’ as the death of jurisdictions such as Cayman fail to properly appreciate the role which tax neutral jurisdictions serve. However, if the Covid pandemic has taught us anything, it is that you cannot absolutely predict or plan for the future and life will continue to throw curve balls. The best course of action is to be as prepared as possible and make changes as necessary. A politically stable jurisdiction like Cayman will always have a place in corporate and trust planning. All the necessary criteria required to help our clients continue to evolve is already in place in Cayman. To illustrate this point, we note that there are now approximately 900 legal practitioners and 1,000 accountants operating in the jurisdiction, numbers which continue to experience significant growth (demonstrating in part the career opportunities that come with an increased regulatory burden). It is noted that all these compliance related functions have a massive cost to a business and unfortunately some of the small players have disappeared or been acquired along the way. We expect this trend will continue as new requirements emerge. While unfortunate in some respects, it is hoped that this trend will also mean an increase in quality and efficiency for those service providers that can get it right.

GLOBAL MINIMUM TAX While discussion around the ‘global minimum tax’ has been heavily publicised, the details of its implementation remain unclear. What is known is that, as of writing, 136 countries have agreed to the establishment of a new two-pillar framework for international tax reform. Broadly, the first pillar is intended to re-allocate taxing rights over multinational enterprises from their home countries to the markets, where they have business activities and earn profits, whereas the second seeks to introduce a global minimum corporate tax at a proposed rate of 15%. The Cayman Islands is one of those countries which has agreed

WHAT IS VASP? Another regulatory development which has contributed to the overall attractiveness of the Cayman Islands is its clear commitment to facilitating innovative virtual asset business. This is evident with the implementation of the Virtual Asset (Service Providers) Act, 2020. The Act provides a regulatory framework based on internationally recognised standards for virtual asset service providers (VASPs). Broadly, the Act defines “virtual assets” as digital representations of value that can be digitally traded or transferred and can be used for payment or investment purposes, and requires the licensing and/or registration of various entities engaging in virtual asset services with the Cayman Islands Monetary Authority. While the legislation is still at an early stage of its implementation, it is expected that in the long run it will mean that Cayman is well-placed to provide a gold standard regulatory framework to support the establishment of Cayman entities to undertake Fintech related services and activities.

“Another regulatory development which has contributed to the overall attractiveness of the Cayman Islands is its clear commitment to facilitating innovative virtual asset business.”

THE GOLD STANDARD The Cayman Islands are a well-regulated jurisdiction operating and providing a ‘gold-standard’ level of offshore services. Cayman’s innovative and pragmatic approach to dealing with the evolving regulatory landscape will ensure that it is able to continue to offer a robust and modern structuring environment for private clients well in the future. TRUST CAYMAN / 7


Cayman Enterprise City has been instrumental in helping the Cayman Islands become a global hub for tech companies. Its vision is to develop world-class special economic zones and build a state-of-the-art campus which will attract new knowledge-based industries to the Cayman Islands.

An innovative enterprise The organisation serves the needs of the island’s community by diversifying its economy, creating a platform for innovation and providing meaningful opportunities for Caymanians and future generations to come. Around 70% of SEZ companies set up with Cayman Enterprise City (CEC) are tech sector companies. With a dedicated Government Authority, generous business licensing fee concessions, and a guaranteed fast-track set-up process, CEC has attracted over 270 SEZ companies to set up a genuine physical presence in the Cayman Islands, with just over 190 of those businesses operating within the digital and/or tech sector. Kaitlyn Elphinston, Chief Marketing Officer at CEC says: “Cayman’s culture of inventiveness matched with increasing levels of digital sector sophistication and harmonious private-public partnerships are a big factor for why we’re seeing an influx of new types of tech companies.” Setting up a genuine physical presence with Cayman Tech City is quick, efficient, and cost-effective. CEC offers readily available fully serviced office spaces and business set-up support for knowledgebased industries — including FinTech, virtual asset trading, and blockchain companies — so that they can focus on innovation, growth, and sustainability. Zone companies enjoy investment

“CEC provides an efficient and easy path to setting up operations in the Cayman Islands. If you’re exploring options for an international presence, the Cayman Islands is an excellent choice.” John Gleeson, Chief Operating Officer at Storj Labs International SEZC 8 / TRUST CAYMAN

incentives, unrestricted immigration pathways, turn-key solutions for businesses of all sizes, and access to a growing tech ecosystem and network of technology and blockchain professionals. Kaitlyn continues: “Technology companies within new and innovative business sectors like to see that the Cayman Islands has a well-regulated and globally recognised free zone which features an expedited business licensing regime, bundled concessions, and ongoing business support. CEC’s growing tech community has now become an attraction in and of itself – innovators, entrepreneurs and global business leaders want to be a part of this vibrant, cutting-edge ecosystem. The establishment of prominent industry sector groups such as Digital Cayman and the Cayman Islands Blockchain Association are making the jurisdiction even more robust and are helping to drive Cayman’s tech sector forward.

Cayman Tech City Benefits include: • Well-regulated and recognised free zone • Secure, efficient and reliable IT infrastructure • No local corporate, income, sales capital gains or payroll tax • Fast, efficient, and costeffective set up within four to six weeks • 5 Year renewable work permits/residency visas granted within five days • A safe, stable British Overseas Territory with robust laws • An appropriately business regulated environment • Excellent service providers to support your business • Easy access to North and Latin America markets • Ongoing support

With our own heritage spanning nearly 100 years, we understand the importance of legacy and protecting what matters for future generations. Our global Private Client and Trust team has the experience and knowledge to provide our clients with creative solutions to the challenges of managing complex family and business assets across international borders.


Robert Lindley Partner, Head of Cayman & BVI Private Client & Trust


Reflections on relocation The Cayman Islands has seen a huge influx in global citizens and high net worth individuals moving here under the residency by investment immigration options. Betty Baraud (founder of Cayman’s leading recruitment agency, Baruad), Michael Joseph (owner of Property Cayman) and Andrew Miller (partner at Bedell Cristin Cayman Partnership) discuss the origins of new residents and their needs, and how their organisations support those choosing to relocate.



he three leading experts agree that the majority of high net worth and ultra high net worth individuals and families are moving to Cayman from Canada and the US, while Michael Joseph says some are also coming from Germany and the UK, and Andrew Miller has seen clients moving to Cayman from Dubai, Monaco and Switzerland. The main reasons for the move are Cayman’s enviable lifestyle and first class infrastructure, including housing, office facilities, schools, hospitality and healthcare, along with the ease of acquiring property and residency and the obvious benefit of tax neutrality. Michael Joseph says: “Cayman is a safe harbour in a stormy world, so by default we are an attractive option. We offer a safe and clean environment for financial investments but also an attractive lifestyle, not to mention being socially, racially and politically harmonious. Why wouldn’t you want that where you live and work?” When people arrive on island they have a number of priorities including seeking legal counsel, acquiring a property, establishing a banking relationship, finding schools for their children, and then, often, working out the logistics of relocating their investments and other assets here. Says Andrew Miller, “we have assisted with everything from pets to classic cars and wine collections. No two clients are the same!” Moving house is stressful at the best of times, but moving to a new country can be overwhelming. Betty Baraud explains that professionals like herself are there every step of the way. “It is our goal to ensure that all new residents to our island feel welcomed


and positive about their decision to relocate. Our clients have numerous questions and concerns regarding relocation and island life, so as a trusted advisor, Baraud holds their hand in attending to all their queries. “Once the best route to residency has been established, our team liaises directly with Andrew Miller the client to ensure all requirements are met. As the island’s longest established immigration services provider, our extensive knowledge and expertise allows us to navigate the complexities associated with residency applications and deliver a seamless service to our HNWI clients, with the end goal being approval of their residency within the required timeframe.” As well as supporting clients moving to Cayman under one of the residency by investment programs, Andrew says Bedell Cristin has assisted numerous ‘global citizens’ to move to Cayman, especially those who can operate their international business and investments from a laptop. “Almost invariably,” he says, “once these clients arrive they begin looking to acquire property and more longer-term

Betty Baraud

Michael Joseph

residency. At the other end of the spectrum, we recently assisted with relocating a family office and its directors from another international financial centre.” Michael says part of the service at Property Cayman is also to connect new residents and their families with the professionals they need in various fields. “In true Caymankind fashion, whoever we put them in contact with reflects on us positively, so we tend to recommend certain wealth managers, bankers, property managers, contractors and immigration/legal attorneys. The benefits for them and Cayman run far and wide. It’s a pleasure to welcome newcomers and they all love it here. The Cayman product is quite special and unique.”


Comprehensive wealth structuring in Cayman

We have specialist knowledge and experience in all areas relating to advising individuals, families, family offices, fiduciaries and fiduciary institutions including: Trusts, foundation companies and corporate structures Wills, probate and succession planning

Regulatory, including CRS, FACTA, beneficial ownership, economic substance and licensing Establishing and relocating family offices

Private investment funds and other vehicles Obtaining Cayman residency

Purchasing Cayman real estate

Trusts and other fiduciary disputes Contact us to find out more: Andrew Miller, Partner T +1 345 814 0871 E



New beneficiaries, new frontiers Henry Mander from Harneys and James Long at Summit Trust discuss what the modern settlor really wants from a Cayman trust and how local trustees meet those needs.


he great wealth transfer, the generational gap, and the approach to next generation clients are themes that preoccupy the thoughts of trust practitioners. It is generally agreed that trust advisors play a vital role in bridging the generational gap by including next gen beneficiaries in succession planning discourse. These next gen beneficiaries are generally characterised as being driven by ethical, social and environmental values (rather than being purely focused on increasing their individual financial wealth). The coronavirus pandemic has undoubtedly accelerated the shifting values and behaviours of our clients with many wealthy families re-thinking their purpose and legacy. It is now more important than ever to implement a client-driven approach (and move away from a product focus) that caters to the requirements of each wonderfully unique family. We, the practitioner, not only have to adapt our approach but also our attitudes/willingness towards working with novel asset classes and for new purposes. Indeed, the modern settlor requires a contemporary trustee and a bespoke trust structure capable of accommodating their ever-evolving needs. THE MODERN TRUST PRACTITIONER Trust practitioners are traditionally viewed as gatekeepers. There are negative implications associated with acting in this capacity (generally centered around inflexibility and inaccessibility). The modern settlor, however, requires their trustee to be flexible and accessible. This is achieved, in part, by adapting the way that we communicate (instant messaging is an invaluable tool available to trustees) and work (Cayman is home to global structures, flextime enables trustees to adapt their work schedules around the demands of these structures). This is also accomplished through trustees that are willing to engage with novel asset classes (cryptocurrency, NFTs) and for new purposes (contributions to social justice causes or the payment of reparations). Cayman is fortunately home to many reputable trust companies that have the skills, knowledge and expertise (as well as strong international networks of reliable advisors) that are capable of adapting their services to accommodate the needs of the modern settlor. 12 / TRUST CAYMAN

James Long The adoption of a modern approach to trusteeship does not, however, mean reneging our core fiduciary duties. Trustees must comply strictly with the terms of the trust instrument and exercise their powers over the trust property in the best interests of the beneficiaries. This duty of care stipulates that trustees must use reasonable care and skill (expected of a prudent man of business)


in administering a trust and extends to a duty to preserve and enhance trust property. Fortunately, Cayman trustees can rely on Cayman trust law which enables the establishment of flexible trust structures capable of housing novel investments and/or catering to social causes. THE MODERN CAYMAN TRUST STRUCTURE The evolution of the modern trust structure in Cayman has resulted in focus on highly bespoke and tailored trust instruments

Henry Mander drafted for high net worth settlors, where detailed input is provided by all onshore and offshore advisors and the appropriate allocation of responsibilities between power- holders is rigorously analysed. Whilst the industry, and the wider world in general is debating whether fiduciary duties should be expanded to take social factors, such as the environment, into account, the variety and flexibility of

the trust options in Cayman provides a number of solutions to address the scenario where a trust is to hold unusual assets or promote social causes. The unique STAR regime contains a number of advantageous features, but in this regard, the ability to list non-charitable purposes as objects of a trust, whether alongside a class of beneficiaries or not (as a STAR trust may exist without beneficiaries) is extremely valuable in structures such as these. By hardwiring the specific social cause or wider purposes of the trust in the trust instrument itself allows the trustee to justify taking a wide range of actions, such as the holding of exotic assets or certain forms of impact investments being made from trust assets, without infringing the discharge of their duties to the requisite standard of care, as would almost certainly be the case in a classic trust with beneficiaries as the only objects, whether in Cayman or another jurisdiction. Equally helpful in allowing the trust practitioner to design the perfect trust structure with these more modern requirements is Cayman’s sophisticated reserved powers legislation. This legislation was enacted in the late nineties, was pioneering at the time and arguably remains the most comprehensive legislation of its type. The statutory presumption that a trust will not be invalidated simply by the reservation of certain powers away from the trustee to the settlor or other chosen by him or her is simple but extremely effective. Of course, it is very important to analyse the reasons behind and the consequences of any power which is potentially reserved away from the trust, both from the onshore perspective, but also in terms of the asset protection benefits of the trust. However, by carefully incorporating reserved powers in a considered fashion, one can reach a trust structure where the housing of exotic assets does not contradict with the trustee’s general duty to safeguard the trust fund and preserve its value. The removal of the trustee’s powers, and resulting duties, in relation to investment decisions over all, or part of, the trust assets, by instead conferring them on some form of investment committee, for example, is a sensible and pragmatic way of addressing these issues. Finally, the use of private trust companies to act as trustee of Cayman trusts is increasingly popular, especially in the single family office space, and is another way of enabling less conservative forms of assets to be held in trusts. This is often due to the fact that the directors of the private trust company may have specific expertise in relation to the particular type of asset and can align the holding of such asset in the trust with their duties in a way that a third party corporate trustee would find very difficult to do.

“Cayman is fortunately home to many reputable trust companies that have the skills, knowledge and expertise to ensure they’re capable of adapting their services to accommodate the needs of the modern settlor.” TRUST CAYMAN / 13



How the Cayman Islands connects with the hearts and minds of wealthy global families. Why are other family offices important to Dart?

What trends have you seen in the last 12 months?

Many of the reasons why Ken Dart and his family chose Cayman for their home and location of the company's global headquarters will resonate with other globally mobile families considering where they want to live, establish a family office or invest. The Dart family office story and investments in and from Cayman is authentic, powerful and relatable for other families and High-net-worth individuals (HNWIs) considering a move to a new jurisdiction.

We have seen a marked increase in enquiries and the desire to move to Cayman. Both on a personal level, from individuals and families, and from a business perspective from those looking to establish a family office or relocate other business interests here. Over the last 12+ months we have seen many individuals make the decision to come to Cayman under the Global Citizen Programme, where you can quickly access residency in Cayman for a period of up to 2 years and work remotely while you are on island.

By sharing our story and journey we can assist other HNWIs, family offices and corporations seeking to relocate and invest, which will ultimately contribute to the future success and prosperity of the Cayman Islands.

With more restrictions on global travel, UHNWIs are reviewing where in the world they want to be based. Cayman is an appealing choice given the quality of life, infrastructure, community and natural environment.

How do you and your team facilitate this strategy? We assist HNWIs, family offices and investors in learning more about the Cayman Islands as a place to reside, set-up a family office or establish their business. For more than 25 years, we have experienced for ourselves the high quality of life and high calibre of talent that exists in the Cayman Islands. Our aim is to share the value proposition of the Cayman Islands with other HNWIs and businesses considering a move to Cayman and provide this service on a complimentary basis. We have a strong network and relationships with law firms, government agencies and other private client advisors both in Cayman and around the world to ensure that a client’s initial experience of Cayman is the best it can be. We know that once an HNWI visits Cayman, the islands and the community will capture their hearts and minds. How do you collaborate with UHNWs and international private client advisors? We position ourselves as the connected Cayman experts. We assist clients with all aspects of their decision-making process- whether that’s temporary accommodations, hotels, island visits, networking, office space and purchasing a home or any other queries they may have about moving – from schools and healthcare to sports and other lifestyle opportunities. We have the knowledge, research, on-island connections and resources at our fingertips, and a portfolio of properties that can ease the transition. We have found that both advisors and families feel comfortable collaborating with our organisation, because of our roots as a family office. Families are comfortable and confident in the alignment of interest and we have much to share from our experience.

What are the main advantages of taking up residency in the Cayman Islands? There is a long list of advantages of establishing residency in the Cayman Islands. There are no restrictions on foreign ownership and no direct taxation in the form of corporate, capital gains, inheritance, personal income tax. The islands are conveniently located with easy access to North America. We have highly sophisticated infrastructure and world class healthcare, education and IT and telecommunications. We are a British Overseas Territory and have a strong and stable economy; a stable democratic government and a Governor appointed by the UK; with a first-class judicial system based on English common law and the UK Privy Council serving as the highest court of appeal. The quality of life is exceptional, with low crime rates, a safe, family-friendly environment, high quality shops, services, hotels and restaurants. What are the best ways for investors to reside in Cayman? Once people have experienced Cayman either through a vacation, business meeting or via the Global Citizen Programme, they often decide to explore a more permanent residency solution, which is usually via one of Cayman’s Residency by Investment (RBI) Programmes. The most straightforward RBI programme is where clients invest USD$2.4 million in developed Cayman Islands real estate and then the applicant can become a permanent resident of the Cayman Islands with no expiry date. There are other residency opportunities tailored to suit the needs of the individual or company. Our team stands ready and waiting to assist. or +1 345 325 8341


To those who live life without compromise, welcome to a place that meets your head’s needs and your heart’s desires. A place where future growth is as personal as it is financial. Welcome to the Cayman Islands. Life as it should be.

Dart Family Office

AN ESTABLISHED LEGACY TRUSTED BY INDUSTRY LEADERS A proven track record for valued counsel, reliable advice and responsive support has enabled some of the world's wealthiest individuals and family offices, largest private businesses and leading institutional trustees to resolve their complex wealth structuring questions and trust disputes. Count on the Maples Group as your source of advantage for trusts and private client solutions.




+1 345 814 5214

+1 345 814 5318

Of Counsel Cayman Islands

Maxine specialises in advising the world's leading banks and trust companies and private individuals on the establishment and ongoing administration of Cayman Islands trusts, including unit trusts, pension and employee benefit trusts and charitable trusts. Maxine is a leader in the use of private trust companies and all matters concerning the licensing, registration and operation of private trust companies. She also regularly advises clients on wills and the administration of estates.

Of Counsel Cayman Islands

Adam is a member of our Cayman Islands Litigation and Regulatory teams. He is an experienced litigator, and regularly advises trustees and beneficiaries of Cayman Islands trusts on contentious and non-contentious applications to the Cayman Islands courts. Adam's regulatory expertise is often helpful in advising those same clients outside of the courtroom.



+1 345 914 5908

+1 345 814 6176

Head of Private Client Services Cayman Islands

Peter specialises in providing personalised trust and administration services for private trust clients worldwide. Peter is a former barrister with extensive experience in the international trust sector, including private and commercial trusts and corporate management and more than 25 years in the private client industry.

Vice President Cayman Islands

Errin has over 15 years' experience in the trust sector, including managing and administering a complex portfolio of private trust structures and companies in various jurisdictions. Errin also has extensive experience with administering Cayman Islands licensed and registered private trust companies.



+44 20 7466 1625

+44 20 7466 1674

Partner London

Ray is head of the London-based Trusts & Private Client team. His expertise includes contentious and non-contentious international trusts and private client work. In conjunction with leading New York, London and Swiss private client advisers, Ray advises a large number of high net worth and ultra-high net worth individuals and families on aspects of international estate and succession planning.

Of Counsel London

Alex advises institutional trustees and private individuals on all areas of trust law and related private wealth issues. He acts for trustees and settlors on the establishment and administration of private and charitable trusts and the establishment of private trust companies. He also acts in respect of estate planning.


Is a Cayman-based family office right for you?


onsidering setting up a family office in the Cayman Islands? More and more ultra high net worth (UHNW) families are paving the way for future generations by making the British Overseas Territory their jurisdiction of choice. Aside from the obvious perks like year-round warm weather, picturesque beaches and undeniable tax benefits, the range of personalised financial and succession planning structures on offer is making Cayman more attractive than ever. What you might not glean as easily from a quick internet search, however, are the practicalities of establishing a presence in Cayman and how service providers there work together to foster a success-driven environment for newcomers? It’s an 18 / TRUST CAYMAN

important decision that merits careful thought and planning. Who better to consult for real-life advice than three professionals who are well versed in advising private clients, assisting with relocations and the establishment if family structures, or advising on private wealth planning on the islands’ idyllic shores? KNOW YOUR TAXES Cayman has successfully cemented itself as one of the world’s leading financial centres – sitting comfortably among the big players like London, Singapore and Hong Kong – making it an efficient location for cross-border investment deals and private wealth planning.


SETTING UP A FAMILY OFFICE “Direct taxes are non-existent,” explains Sue Nickason, Vice President of Dart, who made the move from Canada to the Cayman Islands over a decade ago. No corporate tax, income tax, inheritance tax, capital gains tax, wealth tax, VAT or recurring property tax. Sue adds, Sue Nickason “the taxes that are collected (think import duties, immigration fees, tourism taxes and stamp duty) are deemed sufficient to sustain the services the government provides and offer a high quality of life.” It’s one of the primary reasons why Cayman is considered a leading offshore jurisdiction and investment hub. With this inevitably comes the myth that it’s a “tax haven” and a “sleepy Caribbean island”. Sue is quick to point out that “Cayman is decidedly neither”. The jurisdiction’s model of tax neutrality is often misunderstood. In reality, this system is based on two key principles: openness and transparency, with automatic financial reporting to most countries.


Patrizia Bruzio

COMBINED APPROACH TO SERVICE MANAGEMENT When it comes to offshore service providers, Cayman offers an excellent network of world-class professional advisors. Those considering setting up single-family offices (SFOs) on the island can reap the benefits of a stable government (with a long history of democratically elected leaders and a highly regarded judiciary system), a roster of reputable and committed global banks with strong balance sheets, and STAR Trust legislation which was introduced into Cayman Islands law in the late ‘90s. The latter – unlike trusts established on British home soil – has no maximum perpetuity limit and can be created for non-charitable purposes.

To make a difference, we think differently. Our private wealth clients trust our integrity and personal approach; we customise our services to meet your individual needs. We make sure our solutions are fit for purpose. We’re Harneys, a global offshore law firm with entrepreneurial thinking.

For more information, please contact: Henry Mander Partner | Cayman Islands | +1 345 815 2927

Stephen Price

Charles Moore Counsel | Cayman Islands | +1 345 815 2924


investment in Cayman as a jurisdiction. Having service providers who understand onshore and offshore needs is extremely valuable.” The planning and personalised financial solutions available mirror the Cayman lifestyle itself: Freedom and flexibility are key. “You can choose from a variety of structures depending on what you want to achieve,” explains Patrizia. Retaining control over decisions which are important to you or giving a trusted professional the decisionmaking authority to assess in a future state are both possible. It’s difficult to find this level of fiduciary security and respect for privacy anywhere else in the world.

There’s also an enhanced level of privacy that comes with this, providing separation between the enforcer and the beneficiaries, making it ideal for those running family businesses. It goes without saying that Cayman’s judiciary system is extremely sophisticated and boasts well-developed case law, which families can rely upon should the need arise. Portfolio Manager with RBC Dominion Securities Global Limited, Stephen Price, tells us that “law firms, realtors, banks, portfolio managers and the government are working together better than ever, allowing seamless integration for the family office.” These service providers are collaboratively helping to establish Cayman credibility and instill confidence in significant net worth multigenerational families who are looking to manage a portfolio of increasingly global operations from the island. It’s this expert infrastructure that makes Cayman so attractive to newcomers: consider it the Swiss army knife of personal asset management, if you will. “It’s a holistic approach to planning,” says Patrizia Bruzio, Managing Director of Brown Brothers Harriman Trust Company (Cayman) Limited. “Accountants, lawyers and trustees work hand in hand so that the client experience is a very smooth one. Working with a financial services provider or globally recognised law firm gives clients comfort,” making the transition from onshore to offshore far easier. She adds, “families are also surprised and pleased to know that large, global service providers have also made the 20 / TRUST CAYMAN

A BETTER WAY OF LIFE In terms of its geographic location, the Cayman Islands are easily accessible by plane, with several airlines offering non-stop flights from the UK, US and Canada daily. One drawback to this, especially for those travelling from Asia and the Middle East, may be the time difference and the travel time required to visit friends and relatives back home, yet the advantageous proposition on offer here has been more than enough to entice numerous families into making the move. The Caymanian people are smart, well-educated, hard-working and welcoming. Crime rates are extremely low, and the modern infrastructure is unrivalled – expect excellent schools, first-class healthcare and premium real estate. Our three experts unanimously agree that everybody is friendly and hospitable to new residents and visitors alike. Stephen fondly refers to this as “Caymankind” and cites the islands’ “melting point of cultures” as a key factor that has contributed to its successful global financial services framework. That doesn’t mean you won’t be able to carve out your own slice of privacy on Cayman shores, though. “Retaining anonymity and assimilating on your own terms comes easily on an island where over 135 nationalities and affluent families are represented,” explains Sue. WHAT WILL YOUR LEGACY LOOK LIKE? If reading this has got you thinking about making an investment into Cayman life, you’re not alone. More and more UHNW families are finding that the jurisdiction’s economic stability and prudent legislation are compelling reasons to seriously consider the move. Sue agrees: “this is a place where wealth can be generated, not just preserved.” Combine that with the community’s international makeup and cosmopolitan way of life... there really is no better place to live and do business. The views and opinions expressed are for informational purposes only and do not constitute investment or legal advice and are not intended as an offer to sell, or a solicitation to buy services or investment products.


In the interests of justice Shan Warnock Smith QC of ICT Chambers and Bernadette Carey, Partner at Carey Olsen.


omprehensive leading judgments have become the trademark of the Cayman Islands judiciary, comprised as it is of highly regarded and skilled judges with extensive knowledge of the complexities and intricacies of offshore law. Increasingly, the judgments produced by the Grand Court of the Cayman Islands (the court) reflect the growing challenges faced by private clients in a world where a very significant generational shift is taking place. Applications to restructure trusts to accommodate the needs of the next generation, disputes between warring family members regarding wills and estates, and battles over the appropriate forum for disputes continue to keep the court busy. 22 / TRUST CAYMAN

SPECIAL PURPOSE TRUSTS Cayman’s Special Trust Alternative Regime (STAR) has recently been under the spotlight, with the Court considering an application to reform the purposes of a STAR Trust for the first time. In CIBC Bank & Trust Company (Cayman) Limited v T & S a trustee of two Cayman Islands STAR trusts made the application pursuant to section 104 of the Trusts Act (2021 Revision) on the basis that the purposes of the trusts had become obsolete. The reason for the purported obsolescence was that the settlor’s son had decided to move from the United Kingdom to the United States (the US), to pursue his business interests. However, advice sought by the son indicated that his new residency status as a US citizen would trigger very serious adverse tax consequences. Because of the way in which the trust deeds had been drafted, the assets in the trusts would be very significantly diminished unless steps were taken beforehand to mitigate those consequences. The court accepted that “obsolescence” in this context meant that the basic intention underlying the gift into trust, or the substance or spirit of the gift, could no longer be carried out. In this case, the


independent professional acceptable to both parties. Importantly, it meant that the legal rights of all beneficiaries would receive proportionately equal protection. And, as the removed executor had approached the matter in a hostile manner, acting as an adversarial litigant and for her benefit, she was required to meet the costs of the litigation personally. A cautionary tale for families in similar circumstances.

Shan Warnock-Smith QC

Bernadette Carey

general intent of the trusts (to benefit the settlor’s son and his descendants to the maximum extent possible, regardless of their place of residence or domicile) had been achieved in his place of domicile. However, it could no longer be achieved on the son’s relocation to the US unless the trust deeds were significantly reformed. The son’s relocation (which had never been anticipated by his father) had by necessity led the son’s advisors to prepare a complete and extensive restructuring plan, which he had provided to the trustee. With this information in front of it, the trustee could not ignore the potential and very significant US tax liabilities that would accrue on his relocation: US tax provisions had to be considered by the trustee in any exercise of its discretion or it could face breach of trust claims. Ultimately, the court decided that the purposes of the trusts had become obsolete. While the reforms were far-reaching and transformative, the court approved them on the basis that they remained within the basic intention underlying the spirit of the settlor’s gifts to his family. ESTATE DISPUTES In addition to trusts, it is very common for private clients to use Cayman Islands wills to manage their succession goals and protect their wealth for the next generation. However, the question of who is to step into the testator’s shoes (and whether he or she is doing a good job in the role of executor) can be a contentious one. Often, relationships between family members and executors of the estate of a deceased loved one can become hostile and require the assistance of the court. In Uzzell v Wong Sam the court was asked to intervene in such a dispute. The executors of the estate had accused each other of misconduct in relation to the administration of the estate. The plaintiffs – who were the testator’s sons and included one of the executors – proposed that both executors should be replaced by an independent professional because the breakdown in the relationship had led to an impasse. However, the defendant executor would only agree if she could remain as a co-executor. As a trial of the allegations would have come at significant expense to the estate, it was decided that the court should first determine whether the court had a broad jurisdiction to remove executors outside of the Succession Act (2006 Revision). Having noted that good relations between executors were essential for the administration of an estate, the court considered it ‘blindingly obvious’ that the existing executors should be replaced with an

FORUM An international jurisdiction such as the Cayman Islands hosts multi-national families in all shapes and sizes and its professional services community successfully maintains a client base spread around the world. When disputes arise, they often involve parties, assets and documents found in a variety of jurisdictions (not all of them English speaking). In the case of In the Matter of Geneva Trust Company (GTS) SA v IDF et.a, the elderly settlor of the trust, through her court appointed guardian, had applied for the trust to be set aside via proceedings firstly in Switzerland and thereafter in Milan, Italy. Faced with these foreign proceedings, the trustee applied to the Court in Cayman to restrain the guardian from further pursuing the foreign proceedings so matters could be heard by the Cayman Court. In response, the guardian argued that Milan was the more convenient and appropriate forum, particularly as many of the witnesses and documents were located there or nearby and the Milan court had in any event given directions for a final hearing. The judge concluded that section 90 of the Trusts Act does not confer exclusive jurisdiction on the Court in relation to questions such as the validity of a Cayman trust. The question was then whether the court was the most convenient forum in any event. In resolving the question of forum, the judge held that it was obvious in this case (and in the absence of an express clause in the trust deed conferring exclusive jurisdiction on the court) that the Milan court was the most appropriate forum in circumstances where the trustee had already submitted to the jurisdiction of the Milan court and those proceedings were far advanced. The judgment contains a warning note that trustees facing contentious issues concerning Cayman trusts should seek to invoke the court’s jurisdiction as a first rather than a last resort. INTO THE FUTURE With a variety of matters before it, and novel issues of Cayman law arising from global change falling to be determined on an increasingly frequent basis, the court has shown that it continues to stand ready to provide considered and practical outcomes for global private clients.

“Increasingly, the judgments produced by the Grand Court of the Cayman Islands reflect the growing challenges faced by private clients in a world where a very significant generational shift is taking place.” TRUST CAYMAN / 23


Demystifying digital assets With new virtual asset classes being announced by the day, it can be difficult to keep track. Chris Duncan, Counsel at Carey Olsen and Petri Basson, Chartered Accountant at Hash Consulting look at some of the practical considerations for creating structures to hold digital assets and the structuring options available in the Cayman Islands.


he recent boom in non-fungible tokens (or NFTs) has brought mainstream attention to the world of digital assets, whilst cryptocurrencies such as Bitcoin are seeing widespread and rapid institutional adoption. These factors and others have led to the total cryptocurrency market exceeding US$3 trillion at the time of writing and with it many individuals have made vast fortunes. Those with an eye on the future are increasingly looking to use traditional asset protection and succession planning structures to secure this newfound wealth, however the implementation of these structures involving this novel asset class is unlikely to be straightforward. PRACTICAL CONSIDERATIONS FOR DIGITAL ASSET STRUCTURES Using traditional trusts and private wealth structures to hold cryptocurrencies and digital assets oftens involves a range of novel practical challenges and considerations. It is not possible in this article to cover all of the relevant considerations so we have focused on those most important from a risk perspective. CUSTODY There are broadly two custody options: use a third party custodian or self custody the assets. Making this choice will likely be guided by the types of assets that you wish to custody. Most well known digital assets are supported by custodians, however, as you move to newer and more esoteric assets they will often not be supported, and self custody options will need to be considered. When looking at custodians, the market is rapidly maturing with an increasing number of custodians having Service Organisation Control (SOC) reports in place. Where a custodian does not have a SOC report in place it is advisable for the trustee to perform a risk assessment, or appoint a service provider, to perform a risk assessment before client assets are transferred to the custodian. For self custody, there are a wide range of considerations including 24 / TRUST CAYMAN

Chris Duncan

Petri Basson

private key generation, key storage and key usage. For those unsure of what is involved with self custody, a standard such as the CryptoCurrency Security Standard (CCSS) provides some helpful guidance. Given the risks associated with losing digital assets held in cold storage it may only be appropriate for sophisticated clients and trustees. Once the custody has been set up, consideration will be needed as to how day to day activities will be managed in a way that adequately mitigates the risk of losing the assets. TRADING AND CONTROL Where a trust’s assets are to be actively traded, an exchange account can be set up in the name of the trust or entity. In this regard, careful attention needs to be paid to who can access the exchange for trading purposes. One option is to create sub accounts to allow specific individuals access to trading without the ability to withdraw assets. To add even further protection, additional white listed addresses can be set up to limit the addresses that withdrawals can be made to and login credentials (username/ password and two factor authentication or 2FA) segregated to ensure no one individual can move assets off the exchange. CYBER SECURITY Cyber security is a key concern for trustees and service providers and with the risks associated with digital assets, the importance of adequate cyber security measures is amplified. Given the nature of digital assets, if a hacker obtains control over the private keys, they own the assets and can transfer them as they please. Similarly, when access is obtained to an account with a custodian or exchange which lacks proper security configurations, assets can easily be transferred. A trustee or service provider should therefore ensure all individuals involved in the digital asset process are trained and aware of potential risks when dealing with digital asset transactions.


SOURCE OF WEALTH AND AML CONCERNS Unfortunately many people are still under the impression that digital assets are completely anonymous and therefore it is impossible to get comfortable with source of wealth and source of funds concerns from an AML perspective. They may, however, be surprised that in many instances it is easier to obtain comfort over these factors in the digital asset space than when compared to traditional finance. Due to the transparent nature of blockchains, there are multiple screening tools available, including wallet audits to confirm assets have not been involved in illicit activities and historic audit reports to demonstrate the provenance of the assets. As a consequence, with some basic due diligence, it should be possible to get comfortable with the source of wealth or funds being used to create a new structure. CAYMAN STRUCTURING OPTIONS In Cayman there are a variety of structures which can be used effectively in connection with digital assets, ranging from bespoke trusts to simple companies. That said, the options used most often in this context are STAR trusts, foundation companies and private trust companies or PTCs. A STAR trust can have purposes (charitable or non-charitable), beneficiaries or both. Because of this, STAR trusts are popular with both settlors and trustees, as the trust can be created with the purpose of holding digital assets and thereby

mitigating many of the risks which a trustee may otherwise be concerned about. STAR trusts also allow the settlor of the trust (or some other person) to act as an enforcer with powers to direct the trustee as to investment decisions and to veto certain powers a trustee might otherwise hold. Such protections often give prospective settlors the comfort they need to part with legal title to their assets. Foundation companies, in contrast, are closer to a company in legal terms but with features of a trust or foundation. Foundation companies can be ownerless but have beneficiaries and the ‘founder’ can retain rights in relation to the management and other decisions making them popular with crypto founders. Finally, PTCs are particularly popular where a settlor does not want to part with custody of assets held in cold storage. The settlor could establish a PTC and sit on the board of directors. That PTC can act as trustee of, and hold assets for, one or more trusts meaning that custody of the assets does not need to be transferred to a third party as it may otherwise need to be in a trust scenario. OPTIONS As will be clear from the above, the Cayman Islands, with its wide variety of suitable structuring options, is an ideal jurisdiction for protecting and preserving digital assets for future generations. That said, there are a number of practical aspects to get right and quality advice from those who understand digital assets is critical.

Daniel Martineau Group Executive Chairman

Summit Trust (Cayman) Limited is an independent trust services company located in the Cayman Islands, founded in 2008.

Stella Mitchell-Voisin Group Managing Director

Summit Trust provides continuity in personal relationships and the orderly passing of family wealth for high net worth individuals who require offshore trust and company management services.

James Long Director, Client Services Tara Hopwood Director David Mackintosh Senior Trust Officer

Because Summit Trust is committed to an independent trust administration policy, it is free to work with your existing financial advisers, lawyers, bankers and asset managers, or introduce you to suitable advisers if you do not yet have your preferred team. We are not expecting to be the biggest offshore services provider, but we are striving to be the best.

720 West Bay Road KY1- 9006 - PO Box 601 Grand Cayman - Cayman Islands

Tel. +1 (345) 623 - 2066 @:


Health comes first There are many reasons to applaud Cayman’s healthcare system. From hospitals and cutting-edge equipment to excellent healthcare professionals and outstanding insurance plans, Cayman has it all.


rand Cayman is renowned for its exceptional healthcare system. With three full-service hospitals boasting cutting-edge equipment and more than 150 registered healthcare facilities including walk-in centres, pharmacies, dentists and opticians in every district, Cayman residents seeking medical attention will never fall short of support from trusted professionals. As well as having access to excellent standard health services, residents will also have full access to specialised services such as chemotherapy, gastroenterology, cardiac surgery and hospice care if and when needed. Health City Cayman Islands is just one of the brilliant medical facilities in Grand Cayman. Located near High Rock in the district of East End in Cayman, this medically advanced tertiary hospital was built with a focus on the patient at the forefront as well as being rooted in innovative business models that allow the delivery of high quality, affordable care. As an internationally accredited centre of global excellence, they attract patients not only from the Cayman Islands, but from the Caribbean, the U.S, and Latin America too. The renowned surgeons and medical specialists at Health City Cayman Islands received training at some of the best academic centres in the world, utilising best practices, infection prevention protocols, and evidence-based techniques, they have attained high quality global rankings. Their compassionate healthcare teams provide exceptional clinical expertise that results in positive patient outcomes within a variety of specialties including: anesthesiology, pediatric cardiology, orthopedic surgery and neurology - just to name a few. 26 / TRUST CAYMAN

Integra Healthcare Ltd is another fantastic medical company passionate about providing excellent healthcare in the Cayman Islands. Integra is one of the most sought after medical institutes when it comes to women and family health. Employing only the best of the best, Integra provides a comprehensive range of women, children’s and family health services, all delivered with excellence, integrity, commitment and passion as standard. There are also plans for two new hospitals, further enhancing the exceptional offering available to residents in Cayman. Aster Cayman Medcity, a US$350 million facility will be built in phases over several years, while Health City Camana Bay, a 57-bed hospital, is due to be completed by the end of 2022. But how do you access this kind of incredible healthcare? Cayman law makes it mandatory for all residents to have health insurance and for some, this may sound extremely daunting. But with work schemes in place and companies offering affordable health insurance plans, rest assured Cayman’s healthcare is readily accessible for everyone living on the island. Employers are required to cover at least 50% of the cost for each employee and while this doesn’t cover an employee’s spouse or children, most employers offer benefits to cover family members. Self-employed residents are required to pay for their own health insurance coverage, but advice is readily available at firms across the island. If you are considering a move to the Cayman Islands, you must demonstrate that you have adequate health insurance prior to the application process.

Our Trusts and Private Wealth practice Advising private clients is at the heart of our business. We have an experienced team of lawyers who advise local and international private clients and trustees in matters of trusts and estate planning, asset protection, family office, probate, succession and the resolution of trust and estate disputes. For people looking to relocate to the Cayman Islands, we provide practical and pragmatic advice on the relocation and immigration process. We like to get to know our clients and tailor our advice to meet their objectives. We work with many private clients, families and their advisers, to find strategic and practical solutions to manage their wealth and protect their interests. To find out more, please contact one of the lawyers listed.

Bernadette Carey

Partner – Head of Trusts and Private Wealth, Cayman Islands D +1 345 749 2025 E

Chris Duncan

Counsel, Cayman Islands D +1 345 749 2057 E

Graham Stoute

Counsel, Cayman Islands D +1 345 749 2014 E

“ Its trusts and fiduciary group is in a class of its own.”

Jasmin Davies

Associate, Cayman Islands

Chambers and Partners

D +1 345 749 2032 E








Five star success Sunsoaked days, idyllic views and memorable experiences await at the Cayman Islands’ only five-star hotel. Marc Langevin, General Manager of The Ritz-Carlton tells us about the resort’s latest rejuvenation project.


opular amongst locals and travelers alike, The RitzCarlton Grand Cayman resort sits along the island’s Seven Mile Beach offering uninterrupted views and direct ocean access. A myriad of spaces, amenities and services offer a diverse experience as well as an exceptional selection of fine dining and culinary offerings. Among other amenities, The Ritz-Carlton is home to a nine-hole golf course designed by Greg Norman, which has been named the World’s Best nine-hole golf course by the World Golf Awards. Their luxury spa by La Prairie is the only La Prairie Spa in the Caribbean and offers unique and rejuvenating treatments and products. They also have The Courts Tennis Center, featuring hard and clay tennis courts as well as the only Pickleball courts on island and the 28 / TRUST CAYMAN

Ambassadors of the Environment, an interactive educational program that connects both children and adults to the natural wonders of the islands through activities and fun experiences, including a waterpark. The most important and memorable highlight for guests is the diverse team of people who work tirelessly to make the resort what it is. Each member of staff is carefully selected from countries all around the world for their genuine care, their passion for quality, and their commitment to delivering remarkable service. “The road to becoming a Forbes Five-Star Hotel required many years of training and commitment from our ladies and gentlemen. Due to the difficulty of the journey, receiving the recognition has instilled a strong sense of ownership and pride in our team. We also understand our responsibility to maintain the high standards and continue to prove that our service is deserving of the Forbes Five-Star recognition in the years ahead. For our guests, it ensures that our staff understand their role in creating meaningful and memorable experiences for them, and are committed to providing genuine care and exceptional products and services at all levels,” explains General Manager, Marc Langevin. “We have strived to deliver a top luxury product for this segment since our resort opened in 2005. Due to the variety of room inventory combined with the exceptional products and services we offer at our property, The Ritz-Carlton, Grand Cayman has always been a preferred destination for this segment. Our most discerning customers are able to find accommodations suitable for their specific needs, including 28 residential suites, and the renowned Seven South suites, which includes the Grand Cayman Penthouse, one of the most luxurious suites in the Caribbean. “Due to the diversity and expertise of the team, we have the ability to provide exceptional experiences for our international guests. This complements the sense of well-being they find at our destination, making it the perfect combination of the exclusive and top-tier travel experience this affluent audience seeks when traveling.” In 2020, when the COVID-19 pandemic took the world by storm, the resort went under construction with hopes of expanding and adding to their luxury offering. “While our destination was closed to visitors for a long period due the COVID-19 crisis, our property underwent an extensive rejuvenation project that is currently underway and nearing completion. It will transform our resort experience and strengthen our leadership position in the Caribbean luxury market. With a new design concept in all guest rooms and public areas of the resort, our iconic property becomes a luxury haven, blending modern coastal elegance with mid-century British Caribbean style,” explains Marc. “The rejuvenation project contributes significantly to our resort’s legacy and the refinement of our physical products is aligned with the evolution we have gone through in 16 years of service, delivering exceptional experiences for our guests. The soft opening, scheduled for December 15 2021, is a significant date honouring the resort’s sweet 16, since its opening on the same date in 2005. “We are excited to unveil a completely re-designed restaurant and concept that will enhance our guest experience and will certainly be a destination of choice. More to come on that,” he adds.

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RBC Dominion Securities Global Limited is licensed by the Financial Services Commission of Barbados, the Securities Commission of The Bahamas and the Cayman Islands Monetary Authority. RBC Dominion Securities Global Limited, RBC Dominion Securities Inc. and Royal Bank of Canada are separate corporate entities which are affiliated. * Member–Canadian Investor Protection Fund. RBC Dominion Securities Global Limited and RBC Dominion Securities Inc. are member companies of RBC Wealth Management, a business segment of Royal Bank of Canada. ® / TM Trademark(s) of Royal Bank of Canada. Used under licence. © 2021 RBC Dominion Securities Inc. All rights reserved. 21_90081_1413


Cayman wealth structuring for a new era Are foundation companies the way of the future? Will there always be a role for private trust companies? What is working best for the next generation of families using the Cayman Islands for wealth structuring? Three experts on Cayman trusts and foundation companies give us their insights.


ndrew Leggatt, Managing Director of Butterfield’s trust operations in Cayman, believes Cayman foundation companies will have an increasing role in various aspects of wealth structuring, but will not replace a trust. “Foundation companies may become a vehicle of choice for digital assets more so than trusts,” he explains. “But trusts are well tested by the courts in numerous jurisdictions. Foundation companies will probably replace the traditional STAR trust and company currently used to put in place a private trust company (PTC), as it can create the orphan structure needed by itself.” 30 / TRUST CAYMAN

Andrew adds that foundation companies may be far more attractive to those from civil law jurisdictions, as it gives them a vehicle they have familiarity with, and know. He warns, however, that one potential concern may be how they are viewed by differing common law jurisdictions, both by the courts and tax authorities, both of whom are far more used to trusts and companies. Carlos de Serpa Pimentel, Partner and Group Head of Private Client and Trusts for the Appleby Group, says from a legal advisor’s perspective, that he sees foundation companies being very much part of the future alongside trusts. While agreeing with Andrew that trusts are well tested and have hundreds of years of jurisprudence backing them up, he says it has already the case that foundation companies are becoming the favoured choice as a vehicle to act as a PTC. “I am also seeing them in the wider wealth structuring space, particularly with clients from civil law jurisdictions who find them more familiar than a trust. I also think they are potentially more attractive to people who may have had experiences with trusts which have given rise to litigation. To some extent one could say that a foundation company might, if it is structured correctly, pose less likelihood of there being disputes and


“I don’t see how there isn’t a future for PTCs. They give families a sense of control, they’ve stood the test of time and they definitely work.” beneficiaries becoming involved in litigation.” Emma Santiago, Director of Family Service Offices at Crestbridge, believes there will continue to be a role for PTCs for the foreseeable future as they provide HNWI families with the ability to manage family businesses and wealth across generations, in a more holistic manner than an institution may be able to. “I don’t see how there isn’t a future for PTCs,” explains Emma. “They give families a sense of control, they’ve stood the test of time and they definitely work.” The experts say that it boils down to the inherent risk appetite of the PTC versus a mainstream trust corporation. Institutions shy away from holding medical assets such as cannabis or casinos, as they are typically associated with reputational risk in a wider sense. It can be argued that PTCs lend themselves far more readily to being able to offer solutions for holding a more diverse spread of assets including crypto, as well as the more traditionally accepted mainstream assets like stock portfolios and property assets. PTCs generally require a higher level of engagement by the family, so they are better suited to those families and advisors who are prepared to join the board of directors, roll their sleeves up and get involved with governance and administration. So, what is working best for the next generation of families using the Cayman Islands for their wealth structuring? As a jurisdiction, the Cayman Islands provide tax neutrality, a respected and independent judiciary with experience of trusts and fiduciary structures, and a mature financial services industry (which includes all the participants one needs for effective wealth planning to be put in place along traditional lines well suited to adapting to new developments). “Of rapidly emerging interest,” continues Andrew, “is how we deal with items that the next generation may take more for granted, such as virtual assets, NFTs and so on. Global digitisation is leading to a very different skill set and infrastructure requirement. The Global Citizen program assists by giving those whose businesses and general way of life is more digital, an easy and effective way to come to the Cayman Islands and road test a possible new domicile amongst the number they may already have. Less and less are the wealthy and globally-mobile, restricting themselves to one place to call home.” Covid has taught everybody that we don’t have to stay in one

“We have excellent trust professionals, accountants, lawyers and financial service providers that all come together to offer effective wealth planning.”

place in order to be able to work effectively. We can be wherever we want and clients enjoy having a foothold in all of the places they want to be in. Emma adds: “We have the benefit in Cayman that we don’t just offer one solution. You meet with the family to understand what they are trying to achieve. You work with a legal team and develop a structure that meets their needs. Every family is different and there are many structuring options to choose from in Cayman, thanks to the expertise our jurisdiction is able to offer.” Carlos adds: “We have excellent trust professionals, accountants, lawyers and financial service providers that all come together to offer effective wealth planning. We have so many people here with decades of international experience. And if we look at the next generation, service providers are finding that increasingly they are approaching things from a different perspective. “Philanthropy continues to be a strong strand of what the next generation want their structures to be involved with, as well as ESG investments and the newer digital assets. Advisors need to be mindful that the NextGen, more and more, want to be involved and understand their family structures and what benefits they can bring, not only for themselves but for the wider community and this can also include paying tax.” Emma adds: “It’s a fine balance though. The parents have made their money in a certain way and have their own principles and ideas, so when the NextGen comes through, their aspirations may be completely different. Often the younger generations want a seat at the table, so you do have to listen to them and understand the way that they think. It’s finding that balance between the patriarch or matriarch and those coming along after, making them feel involved and listening to what they have to say and how they want to shape their future.” With the growing trend to invest in digital assets, time may lead to more boutique-type trust providers who specialise in this area. The reality is, in terms of licensing and regulatory legislation, there is still more that needs to be developed in terms of Virtual Asset Service Provider (VASP) legislation, which isn’t yet in force, but is very much around the legislative corner. Carlos says: “Once Cayman brings in that type of regulation and legislation, we should be in a position to expand further this new digital space and digital world and there may be more opportunities globally for us in Cayman to help clients whose wealth has been made in those assets.” Emma adds: “The digital asset space can seem very divisive. You talk to some investment advisors and they’re completely against it because it’s not regulated, but the younger generations are generally very keen to invest in this space. So, you have this divide as to what’s the best way forward.” Andrew concludes: “We are all already well versed in property, yachts, planes and financial assets in trust structures, but not perhaps as well versed with the digital variations of the same assets. Trusts, as they exist today, will continue to exist alongside foundation companies and other ways of holding items of value for both the present and future generations. I see them all as complementing each other and each very much with their own particular strengths. Going forward, a challenge may be getting them all working together in order to meet wealth planning goals as they arise.” TRUST CAYMAN / 31


Where there’s a will, there’s a way By Andrew Peedom from Collas Crill and Conrad Proud at Ocorian.


he Cayman Islands has seen significant growth in the number of estate disputes landing before its courts over the past few years, largely as a result of family disharmony and poor estate planning. Where private clients own Cayman assets, it is important to consider the need for a Cayman will, the key aspects of Cayman probate processes, the benefits of appointing a local executor and trustee to administer an estate which includes Cayman assets, and the use of trusts as an alternative. A CAYMAN ISLANDS WILL When a person who is not Caymanian or a resident of the Cayman Islands dies, leaving Cayman assets in their own name, their heirs will naturally wish to have access to those assets as quickly and cost-effectively as possible. That can readily be achieved by putting in place a will. It is also important to ensure that the will clearly outlines how their estate is to be administered in order to 32 / TRUST CAYMAN

avoid any family disputes as to how a will should be construed. Those mechanisms might ultimately result in preserving (rather than eroding) the value of an estate. The will should deal specifically with your Cayman assets, and can be made in addition to another will or wills dealing with your assets which are located in other jurisdictions. However, there are some practical considerations one should be aware of, which we address below. 1. Obligations of executors in relation to all Cayman situs assets While all Cayman assets can be dealt with separately from your estate which is located elsewhere if a Cayman will has been executed, this does not relieve executors and trustees of your Cayman will, or indeed your executors and trustees in respect of wills executed in other jurisdictions, from any duty they might have to declare the assets you own here and, if called upon, to pay duty or taxes on those assets.

Intelligent and insightful offshore legal advice and services. Delivered with perspective.

PRIVATE CLIENT & TRUST SERVICES Appleby’s Private Client & Trusts team provides a seamless private wealth service for clients looking to achieve their wealth structuring goals. With one of the most experienced and respected offshore private client, trusts and litigation teams, we are able to deliver specialist advice through global experience and local knowledge in our clients’ time zones.

CARLOS DE SERPA PIMENTEL Partner & Global Head Private Client & Trusts

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ESMOND BROWN Counsel Private Client & Trusts


2. The nature of your assets and how they are held As a general rule, the law governing the distribution of real property is the law of the country where the land is situated; and the law governing the disposition of personal property (including investments, bank accounts, stocks and shares, etc.) is the law of the place where you were domiciled or resident at the time of your death. However, where any assets are held by a Cayman company, they are likely to be classed as Cayman property (save for immovable property located elsewhere, which may be treated differently). The laws of some states and countries require that a person’s estate is bequeathed in certain proportions to certain people; for example, a spouse, children or dependants (ie. forced heirship rules). It is therefore possible that provisions in your Cayman will (other than those with regard to real property) may be overridden by the statutory requirements of your place of residence or domicile. It is therefore prudent to consult with your legal advisers in those jurisdictions where your other assets are located to establish whether the law of your place of residence or domicile (if outside Cayman) requires you to allocate specific portions of your estate in a particular way to particular individuals. 3. Administering an estate One practical benefit of a Cayman will is that obtaining a grant of probate (Probate) in order to administer the estate, will be relatively straight-forward. Where the deceased leaves only a foreign will which is admitted to Probate in that jurisdiction, an application can be made for it to be re-sealed in the Cayman Islands Probate Court. If the relevant will is not capable of being admitted to Probate elsewhere, then an application for a Grant of Probate will need to be issued in Cayman. For re-sealing to take place, there must be a foreign grant and it must authorise and require the grantee(s) to take possession of the deceased’s property and apply it towards discharging his liabilities and distributing the residue to the persons entitled. Once all relevant documents and an inventory is filed, the judge dealing with the application may require the application for re-sealing to be advertised, security to be given for the payment of debts due to creditors resident in Cayman; and/or further evidence or documents in addition to those listed above. Given the straightforward nature of this process, re-sealing is becoming increasingly common; more foreign grants of probate are resealed in Cayman than new grants issued each year. Generally, a re-sealing application takes three to four months for it to be determined by the court. Once the grant of probate is re-sealed, the Cayman Islands situated assets can be accessed and distributed by the executors in accordance with the terms of the foreign will. 4. Potential difficulties with administration Disputes in connection with a will arise where its intention and 34 / TRUST CAYMAN

meaning are unclear and consequently, open to misinterpretation; and where an executor or trustee is considered to have ‘taken sides’. Clear language, accurate drafting and the careful selection of executors and trustees may avoid those scenarios occurring. However, where that is not the case the Cayman courts have jurisdiction to hear and determine applications for advice and directions[1] and to deal with applications for the removal of an executor where the beneficiaries of an estate as a whole do not consider that an executor is acting in the estate’s best interests. [2] This issue is central to the court’s determination of any removal application. ESTABLISHMENT OF A CAYMAN TRUST As an alternative to putting in place a Cayman will or re-sealing a foreign grant, the establishment of a Cayman Trust might be a preferred method of estate administration. If Cayman situated assets are transferred into a Cayman Trust prior to the death of a testator, it is possible that the above processes (and potential pitfalls) can be avoided. Trusts can be used to achieve the same or similar aims, or indeed offer practical solutions where a will does not meet the needs of an individual. Trusts also offer the flexibility to distribute property while one is still alive, which enables one to provide financial support to proposed beneficiaries when they might need it; for example, for education; a move up the property ladder; or to assist with a business venture. This flexibility is not afforded to wills, which only take effect upon death. Trusts have long been used for asset-protection purposes. When estate planning, they offer the same protections assuming that the deed is well drafted. In addition, trusts are less susceptible to a successful challenge from a disgruntled beneficiary than a will. This is partly due to the ongoing involvement of the settlor, making it more difficult to prove incapacity, undue influence or fraud that it may be subjectively argued occurred at the time a will was executed. An extension of this concept of ongoing protection is that trusts also make better tools for dealing with incapacity as they allow for provisions to be made in the event of incapacity so that the trust continues to be administered as intended should the unfortunate happen. Trusts also provide greater flexibility when tax planning, as they can be structured in a way that takes consideration of the tax laws that apply to the location of the assets or beneficiaries. Advice should be taken in each affected jurisdiction to ensure compliance with the local tax laws or when navigating forced heirship rules in a jurisdiction where such laws exist. In summary, both wills and trusts offer complementary characteristics that should be considered when estate planning. Amongst other things consideration should be given to the nature, value and location of the assets being passed on; as well as the age, relationship and personality of the intended beneficiaries. As mentioned above, tax planning for both yourself and the proposed recipient of the assets is likely to be an important consideration.

Dominic Lawton-Smith Emma Santiago



* Wyoming services are provided by Crestbridge Fiduciary, LLC, a joint venture between Crestbridge and Willow Street. Crestbridge Fiduciary Limited is regulated by the Jersey Financial Services Commission for trust company business and has its principal place of business at 47, Esplanade, St. Helier, Jersey JE1 OBD, Channel Islands. None of the services referred to in this promotion are regulated services under the UK Financial Services and Markets Act 2000 (as amended).


Suspicious activities The Cayman Islands operates a robust regulatory environment that applies extensive KYC and AML procedures to all incoming clients and structures. But, what processes are in place to deal with suspicious activities that might take place in a trust and how should trustees deal with trusts exposed to PEPS, fraud and corruption?


ichard Lewis from FFP and Maxine Bodden from Maples Group both have extensive experience of dealing with such matters and say there are clear processes in place to deal with suspicious activities. The primary goal is to set yourself up to succeed from the beginning of a relationship, so that you can easily identify 36 / TRUST CAYMAN

what might be suspicious activity. Richard explains: “When you’re initially talking to your client, it’s all about understanding the background, the (proposed) structure and the client’s needs and objectives. Critically you need to build up a good understanding of their source of wealth, and ask the right questions so you get to know the stakeholders. In a private client situation, understanding the family, it’s dynamics, the specifics about the key members including their location, level of involvement and understanding of the trust or structure and their financial means, needs or objectives. That onboarding is incredibly important from day one, to understand what “normal” looks like and give you the ability to recognise changes. “By building that good foundation of understanding of who you’re dealing with and where their money and assets come from, it enables you to be better prepared when they look to make an investment - whether their children are moving school, they’re buying a house - and ensuring that the proper advice has been taken. It’s about making sure that when a request comes in from a beneficiary or someone with reserved powers, that you understand the rationale for why that is being requested and ensure any assistance or advice has been provided. That way,


Maxine Bodden

Richard Lewis

you’re setting yourself up so you can identify anything that falls outside of that, which may be suspicious.” Maxine adds: “The term, ‘know your client’ goes far beyond having copies of their passports. It’s about knowing the structure and knowing the people that want to put that structure together. That’s something a good trustee must always be aware of, because if something is going untoward within a structure, your trustee should be able to quickly identify that and get on top of it. “A lot of the time mistakes can be made inadvertently. You need to make sure there’s consideration into every step you take, because if you make that inadvertent misstep, you can get into a situation where things start happening that shouldn’t have.”

“A lot of the time mistakes can be made inadvertently. You need to make sure there’s consideration into every step you take, because if you make that inadvertent misstep, you can get into a situation where things start happening that shouldn’t have.” Having an exceptional team in place is essential. One that understands all of the above, but also has the systems in place to facilitate the monitoring of the trust, the investment behaviour, the distributions that have been requested and the approval process. Maxine continues: “You’ve got to have good advisors around you because the regulatory environment is continually changing, so just because you had a piece of advice two years ago, doesn’t mean you’re on safe ground now. You need to keep that line of communication open. “You’ve got to build that nest to make sure you have a foundation, then you can ensure if something out of the ordinary arises, that could be conceived as suspicious, you’re well placed to deal with it.” Richard continues: “It’s amazing, especially in the investment side, how many people can fall foul of intricacies with Cayman law or other offshore jurisdictions, such as cannabis investments, for instance. In Canada and the US it’s become much more mainstream, but it may not even occur to people that that could be an issue in how they hold a cannabis related investment here.” If you carry out all the necessary due diligence, it should be quite clear when something is slightly out of the ordinary. So, how should

trustees deal with trusts that may become exposed to PEPs, fraud or corruption during their lifetime? Richard says: “Not all PEPs are equal and it’s very easy for people to get lost in that. Yes, there is enhanced due diligence because of the heightened inherent risk in the relationship. You’ve must have a business model that gives you flexibility in your processes and procedures to understand and document who is the PEP, why are they there and what role they play whilst ensuring that these processes appropriately mitigate and manage any identified risk associated with a PEP being in a structure. The role that a PEP plays in a structure will have an impact on this assessment and the procedures required at onboarding and on an ongoing basis. “With fraud, if you spot something, or someone comes to you and says they’ve seen something suspicious, you’re processes need to kick in to discharge your obligations. One of the many great things about Cayman is that we have an engaged Financial Reporting Unit (or FRA as it is here) with good legislation compared to other jurisdictions that support service providers in this process rather than making a difficult situation worse. Our regulations provide a mechanism for people to report and know that it will go through the right channels and be dealt with appropriately. While with corruption, that comes back to understanding the key signals that are coming out of the communications from the people involved in the trust; payments from and to who, and that comes back to the foundation we’ve already talked about.” When it comes to keeping bad actors out of Cayman, Maxine says this is something that the islands are very good at, because we have skilled professionals and an evolving modern regulatory landscape. “You’re constantly being vigilant, sometimes we’re looking where we don’t need to be. What sets us apart is the ability of the private sector to engage with government and all the various stakeholders and regulators – locally and internationally. There are very few countries in the world that have that direct line of communication, so Cayman is a well-oiled, well-regulated machine. “We have various bodies, constantly looking for ways to improve what we already have in terms of legislation and it’s that open mind that keeps us at the top of our game.” Richard adds: “We recognise that we’re a small nation, but we have a lot to offer. However, we have to move with the times so having an engaged regulator and Ministry of Finance and Economic Development is incredibly important. It’s not just about looking at what’s happening now but looking at where we are going. This gives huge kudos to the industry and service providers. Moreover, we have a very strong judiciary to rely on when there are issues, so people can be certain that they will have a good result and that is very important. Ultimately the combination of these elements serve to dissuade bad actors and identify situations that becomes an issue. “The quality of service providers in Cayman is very high – it’s a very competitive landscape. There are lots of good people out there with different niches that helps to ensure the many different clients with a variety of assets and desires are able to operate their structures effectively. so to me that’s a huge positive for the jurisdiction. We don’t all try and run in the same lane, and there’s lots to be said for that.” TRUST CAYMAN / 37


What does 2022 have in store for the trusts industry on Cayman? By Monique Bhullar, Walkers Global and Tamara Corbin, Rawlinson and Hunter.


he Cayman Islands is currently experiencing a transformation in its position as a leading international financial centre. With increased regulation and a fast-changing global economic and social environment, Cayman has proven itself to be a nimble jurisdiction, evolving quickly to meet the requirements of the times. So, looking forward, what does 2022 have in store for the trusts and private wealth industry? The industry is likely to see a continued upsurge in the relocation of high net worth individuals (HNWIs) and their families and the relocation and launch of new businesses in Cayman’s innovation and technology sector, as well as increased focus for trustees and advisers on crypto, technology investments and ESG. CONTINUED RELOCATION OF HNWIS AND THEIR FAMILIES TO CAYMAN The last two years have seen significant growth in the relocation of HNWIs, their families and their businesses to the Cayman 40 / TRUST CAYMAN

Islands, and this trend is on track to continue in 2022 and beyond. Cayman’s status as a top tier jurisdiction for HNWIs is based on a number of factors, including the stability of its government, its financial system, safety and the respect for legitimate privacy. Whether due to the COVID-19 pandemic giving such individuals and families time to reflect on making a move, or the ongoing ramifications of changes to political or legal regimes in home jurisdictions, Cayman is experiencing a surge in HNWIs applying to relocate to the Cayman Islands. This will have a direct, positive impact on the trusts and private wealth industry in Cayman. Many HNWIs are obtaining residency in the Cayman Islands through investment in high-end local real estate, which has created an immediate need for a wide range of local trust and corporate structuring and on-going services to facilitate pre and post-relocation tax, legal and succession planning. This shift in focus to providing legal advice and trustee services to a new, local HNWI client base is only expected to grow in the years ahead, as these individuals and families set roots in the Cayman Islands and establish or relocate a diverse range of business activities in the jurisdiction.


ENTREPRENEURS AND NEW WEALTH The Cayman Islands has established itself as offering highly attractive physical presence opportunities in recent years to entrepreneurs in many business sectors, and in particular, has been gaining a name as a global hub for innovation and technology. The range of technology businesses in Cayman’s innovation sector is diverse and includes e-commerce, blockchain, fintech, biotech, software development,

Monique Bhullar and Tamara Corbin

data services, aviation innovation, to name a few, and the jurisdiction has developed robust legislative and regulatory regimes around these. This includes the Cayman Islands Virtual Asset (Service Providers) Act (“VASP Act”) which came into effect in late 2020. Globally, wealth is being generated by young, intelligent and enterprising individuals, and this generation of wealth accumulators will, in 2022 and beyond, require fresh and innovative structuring at both a business level and a personal succession planning level. Looking forward to 2022, this will invariably lead to an increase in trust structures in the jurisdiction, but also of note, a range of new and innovative structures including Cayman Islands foundation companies (which are already used heavily by clients in the fintech space for Decentralised Autonomous Organisations (DAO)) and bespoke STAR trusts used for a combination of commercial and personal planning purposes. INCREASED FOCUS ON CRYPTO AND TECHNOLOGY INVESTMENTS In recent years, accelerating interest and importance to clients of digital assets such as crypto currency and technology investments has meant that fiduciaries have had to adapt in relatively short order. Digital assets have become as important to many clients as physical assets, and are far more commonplace in a trust’s investment portfolio than a year or two ago. Notably, many such (often higher risk) holdings have exponentially increased in value over the same period. A small number of innovative tech companies are creating the world of tomorrow and appear poised for exceptional growth. Looking to 2022 and beyond for Cayman’s trust industry, this changing investment landscape may have a number of different implications. First, fiduciaries in consultation with managers will be carefully reviewing portfolio allocations and assessing which components should be within these asset classes, all the while considering market norms and other risks and considerations. If crypto and technology investments continue to increase in value at the rates that we have seen over the last few years, investment portfolios that do not include some fair exposure to such investments will likely suffer. Second, in the event that this growth slows down or such investments suffer losses, then invariably trust litigation will follow, as beneficiaries seek accountability for decisions which have led to a loss in the value of trust assets. Ultimately, trustees will need to carefully balance their duty to preserve the value of the trust property with their duty to enhance the trust property. On the one hand, trustees will need to have a heightened awareness of the risks of investing in this market, including that the asset value may abruptly fall, that an asset purchased turns out to be the proceeds of crime or scam or suffers market manipulation, or that the custodian loses the asset to a hack or loses the ‘wallet key’. On the other hand, many settlors are likely to be very keen to have exposure to this asset class, and the growth of importance of this industry means trustees and managers of trust funds will need to gain a comfortable level of knowledge and understanding of such investments to incorporate them, as appropriate, into a balanced trust investment portfolio. As HNWI clients focus on investing in this sector of the market,


“The Cayman Islands has established itself as offering highly attractive physical presence opportunities in recent years to entrepreneurs in many business sectors, and in particular, has been gaining a name as a global hub for innovation and technology.” the trust industry will likely see an increase in the use of reserved powers trusts, private trust companies and foundation companies. The use of reserved powers trusts, particularly the power to direct investment strategy, provides flexibility for bullish settlors to elect to invest in higher risk or unusual assets. Using these structures can allow the professional fiduciary to observe and play a role in the investment strategy, without having ultimate decision-making responsibility (by not itself acting as trustee). ESG CONSIDERATIONS Sustainable investing and ESG (Environmental, Social and Governance) considerations have, in recent years, been brought to the forefront for investment managers, advisers and trustees, driven by alarming consensus over climate change, COVID-19 and progressive social considerations, which have put pressure on politicians, policymakers, institutions and individuals worldwide. The recent Global Conference on Health & Climate Change held on 6 November 2021 also highlighted considerations around public health and climate justice to the UN climate negotiations, and called for a healthy, green and resilient COVID-19 recovery. Cayman’s Premier attended this Conference in person, having placed ESG sustainability as a priority for his government. Worldwide focus now more than ever indicates that this is, and will increasingly become, an intense priority for a progressive generation of stakeholders such as Millennials and Gen Z. Advisers to HNWIs are frequently considering appropriate structures to meet changing client needs, and trustees are increasingly being challenged to invest in ESG assets by beneficiaries, investment managers and other stakeholders, sometimes with a specific cause or focus in mind. Accordingly, in the next few years, it is expected that ESG initiatives and investments will play an increasingly significant role in the objectives of Cayman Islands trust and private client structures and their underlying investment portfolios. Trustees, settlors (holding reserved powers), beneficiaries, and advisors will be looking to ensure that ESG investments held within private wealth structures meet the specific parameters and wider objectives of the particular family. The progressive, modern client may go further and determine that they wish to establish special purpose entities or bespoke structures for such investments within a wider family structure, or perhaps family council/forums that serve solely to meet the philanthropic and ESG goals of the family. ‘The world is your oyster’ comes to mind in respect of the 42 / TRUST CAYMAN

opportunities and focus on the greater good, and Cayman professionals will be well placed to assist and guide this new wave of HNWI clients in this progressive movement. OUTLOOK The outlook for 2022 and beyond is extremely positive for the Cayman Islands trusts and private wealth industry, which has proven itself to be ideally placed to meet the demands of the entrepreneurial, sophisticated and progressive HNWI client-base of the future. With a changing of the guard from the wealth generators of prior generations, the focus of the current and future generations of HNWIs will include an emphasis on social and environmental considerations, with ESG initiatives at the forefront. The Cayman Islands’ legal and service provider offering, and Cayman as a jurisdiction for HNWIs and their families to live and work in, are both strategically placed to meet the client demands of this changing global landscape.

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STEP Student of the year STEP Cayman is very proud to celebrate the achievements of our Cayman student, David Lewis-Hall.


ull STEP members (TEPs) are internationally recognised as experts in their field, with proven qualifications and experience. Passionate, dedicated and hardworking, TEPs excel in going above and beyond in their career introducing David Lewis-Hall. David Lewis-Hall is a senior associate in Appleby’s Cayman Islands office and a member of the Dispute Resolution department. David has broad civil and commercial experience, with particular experience of corporate disputes, insolvency litigation and property disputes. Before moving to the Cayman Islands, David practised at the Bar of England and Wales at a leading set of Chambers. Appearing in Court on a regular basis throughout his career, David has extensive advocacy experience of all stages of the litigation process, including substantial trial advocacy. David has excellent client care skills, with his friendly but nononsense approach at the Bar in England being commended by both instructing solicitors and lay clients. David prides himself on helping clients to find practical commercial solutions to their legal disputes. His most recent achievement? Winning the STEP Excellence Award for passing his STEP Certificate in International Trust Management with one of the highest scores worldwide. David dedicated a difficult and turbulent 2020 in order to expand his knowledge and grow his qualifications to help others: “I had a great experience as a STEP student, albeit a slightly different one from previous and subsequent students as the course took place during lockdown in 2020! I decided to sign up for the STEP Certificate as I was relatively new to the jurisdiction and offshore

David Lewis-Hall world at the time and knew that the qualification would be invaluable to give me a solid grounding to develop my practice. “I found the course to be interesting, highly relevant and delivered in an accessible manner. STEP is so well regarded here in Cayman and is such a supportive, collegiate community of practitioners. As a jurisdiction, Cayman is subject to increased scrutiny and an ever-changing regulatory landscape which, although to be welcomed, poses challenges as the trusts industry learns to adapt and respond accordingly.”

“I found the course to be interesting, highly relevant and delivered in an accessible manner. STEP is so well regarded here in Cayman and is such a supportive, collegiate community of practitioners.”





Our Caribbean team has specialist expertise ranging from trust administration and accountancy to highly individualised succession planning and family office services. We can support you with a wide range of fiduciary solutions, from simple holding structures to complex, sophisticated structures with multiple asset types under administration. We pride ourselves on the relationships we build with our clients and partners, and as an award-winning provider of private client services we know we’ll be the perfect partner for you.

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Attracting investment in Cayman The investment promotion agency, InvestCayman, is responsible for attracting and facilitating foreign direct investment to the Cayman Islands. Director, Jane Scaletta, tells us how the agency is working to attract inward investment and how local service providers are working together to manage investments in the islands.


nvestCayman was established under the Ministry of Finance and Commerce in the early 2000s when the Government saw the need to promote the Cayman Islands as an investment jurisdiction. Today, InvestCayman has a new brand and strategic plan with a clear message as the investment promotions agency for the Cayman Islands. Its main goals are to centralise foreign investment promotion and facilitation activities, such as information dissemination and policy advocacy, within a single agency to present a coherent impression of the Cayman Islands’ attractiveness for investors. Jane explains that, as a new entity in the Cayman Islands Government, they’re working to develop their brand and promoting InvestCayman both locally and nationally. “We are aligning with the Cayman Islands Government Strategic Policy Statement and Board Outcomes and working with local associations on determining the role they play in the investor journey, as well as identifying what processes and procedures work well, and what challenges they have.” “We have had requests from high net worth individuals who would like to move here, international companies that would like to open a business, companies looking to set up their digital asset company, companies that have proposals for renewable energy, transportation solutions, and more.” InvestCayman isn’t just about attracting investment from overseas, there is also a role for other services providers on island to collaborate with the agency. “InvestCayman should be the first point of contact for an investor so we can prepare them for their onboarding journey whether they want investment information on the destination, investment opportunities, lifestyle consideration or are investors interested in investing, or reinvesting.” This would mean from the investment promotion agency’s perspective, there are a number of key relationships with other 46 / TRUST CAYMAN

Jane Scaletta organisations and groups which help form the core of the local development system. Though these relationships vary according to the nature of the system in terms of its scale, focus, aims, politics and legal frameworks, some of the most significant include: Local and regional political leadership; Member/stakeholder organisations; Other investment promotion agencies; Delivery partners; The private sector; The media; The local community; Our colleagues. The growth of family offices in Cayman has been huge in the past 12 to 18 months, and the jurisdiction is increasingly a hub for technology, so InvestCayman is planning to foster that growth

We are recognised for our ability to seamlessly guide international clients through the Cayman Islands real estate process, whether it be for investment, relocation or for proof of independent means. Our network of expert lawyers and industry professionals can assist clients through the process, utilising a range of trust and corporate structures to secure their real estate investments. We build life-long relationships, working alongside trusted professionals to help clients navigate the rapidly changing Cayman Islands property market.


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in a number of ways. Jane explains: “We will work with stakeholders promoting the Cayman Islands as an investment jurisdiction. We are an investment promotion agency and serve to facilitate those types of relationships and provide the information for a family office to consider the Cayman Islands. “We know that marketing to a family office, whether a multi-family office (MFO) or a single family office (SFO), requires niche marketing and strong relationships. Family offices prefer personal relationships and have a holistic approach to investment considerations. We plan to organise professional activations with networking interactions both locally and internationally. We have created a program called the Enhanced Business Development Initiative (EBDI) to engage and facilitate activations on island. It’s also important InvestCayman is where the family office managers engage in activities, trade shows, events and that includes online with social media.” Promoting inward investment to the Cayman Islands is something Jane is passionate about. She’s a Caymanian, the Cayman Islands are her home and she has a deep connection with them, as well as a 48 / TRUST CAYMAN

long history of promoting them as the Executive Director of the Cayman Islands Tourism Association (CITA) and as the Deputy Director, International Marketing and Promotions with the Cayman Islands Department of Tourism. “I have a strong focus on sustainable, responsible, impact (SRI) investments. What does that mean? Seeking companies with the intention of making investments that make a measurable beneficial impact on the environment, society and have corporate governance (ESG) criteria, while generating long-term positive financial returns. I hope to see our infrastructure advance to help easy access and movability through public transportation. I hope to see renewable energy that affects our everyday lives in an affordable and economical way. I see industries that we can become the leader in like we are in financial services, such as cyber security, fintech, healthtech, and digital assets. There is so much more than that – and the Cayman Islands is positioned to grow exponentially from now into the future with the right investments.”


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The North American synergy An increasing number of families from Canada and the US are choosing to use the Cayman Islands for their structures, with some even establishing new permanent homes here. Anthony Partridge and Lee Hart discuss why Cayman has become such an attractive jurisdiction and what it offers those originating from these countries.



hen it comes to high net worth individuals choosing a jurisdiction to relocate to, it’s impossible to identify just one specific factor that determines where they ultimately end up. Anthony Partridge, Partner at legal firm Ogier, has been advising such individuals for many years and says it’s a combination of factors that they’re looking for, but recent global events have seen a surge in people choosing Cayman. Anthony says: “I think it’s true that things have changed somewhat over the last couple of years. The Cayman Islands was an attractive proposition before the pandemic but now even more so, as it’s also considered a safe place to be. The property market has been extremely active and we’re advising clients that have never even been here; they’re buying properties unseen.”


There are many factors to consider when choosing a jurisdiction such as the stage of life at which an individual is at. Those with young families will be looking for good quality schools for their children’s education and Grand Cayman offers education facilities of a globally recognised standard. You also see clients moving here that are older and globally mobile, so it really doesn’t matter where they live. Healthcare becomes important to them with a number of state of the art facilities in Cayman.” “We see the full spectrum” explains Lee Hart, Senior Manager at Genesis Trust and Corporate Services. “We have seen an increase in younger entrepreneurs or those that have seen rapid wealth generation in digital assets. These are people that have businesses or investments that are truly global and can work anywhere, with no family ties and see Cayman as having many advantages. It’s a great place to live, has favourable weather, boasts quality professional services and an accessible time zone. These type of clients tend to be more nomadic in their nature, so Cayman’s accessibility with Miami an hour away is a big draw, it all blends together to make an attractive proposition.” Once a HNWI has made the decision to choose Cayman as their jurisdiction there are a couple of ways to approach the move in terms of residency. Anthony explains: “We look at the client’s circumstances and what they’re trying to achieve. For example, if they wish to work when they move to Cayman, there is a specific residency route they need to take, whereas there’s different options

for those choosing to live or retire here. That’s not to say all clients end up making Cayman their permanent residential base. Often clients and their advisors will have a desire to use Cayman to meet their needs whether that be asset management, philanthropy, succession or asset protection.” Lee says “In this case as a Cayman Islands trustee and a private wealth and trust attorney, we work with onshore counsel, very closely, to assist with the best structuring options for the client. There are complex considerations and that’s where the offshore and onshore legal advice comes in and is really important. The flexibility of the Cayman Islands legislative framework along with an excellent pool of trust, corporate and legal professionals helps set the jurisdiction apart.”

Why HNWI choose Cayman for their structures: • • • • •

A strong pool of professionals and expertise Tax neutrality and robust legislation Location, time zone and weather Exceptional health care, education and infrastructure Quality and sophistication of lifestyle


Colourful cuisine Cayman isn’t just a place for business. The island is home to Camana Bay, renowned for its colourful and vibrant cuisine. Take a tour around the latest additions to the culinary capital of the Caribbean.


ocated in the heart of the award-winning Seven Mile Beach, Camana Bay is a lively waterfront destination made up of first-class shopping facilities, cultural experiences, fabulous bars and an exquisite selection of restaurants. As the popularity of Camana Bay continues to grow amongst locals and tourists alike, so does its selection of world-class foodie establishments. NEXT DOOR From the team who brought you Agua, Next Door is a classy, speakeasy-style boutique bar serving classic cocktails, light bites, and the opportunity to try something new. Located - as suggested in the venue’s name - next door to the already famous Agua, this elegant establishment promises a night of sophistication and class. From the stunning outdoor lounge and the modern eclectic interiors to the impressive menu, there’s much to enjoy here. Sip on Cayman-inspired cocktails like their delicious Déjà Vu which mixes together palate-pleasing ingredients of rum, spiced apple chair cordial and Camana Bay pimento tincture. Tuck into tasty bar bites in the form of oyster chilaquita, roast pork tostone, a charcuterie board and more. Whether you’re starting or finishing your night at Next Door, you’ll leave already planning your next visit. 52 / TRUST CAYMAN

PANE & PASTA Enjoy authentic, freshly handmade pasta and bakery products right here in the heart of Camana Bay. The new and brilliant Pane & Pasta is an Italian restaurant dedicated to bringing the tradition of Italian handmade bread, pasta and pizza to the Cayman Islands. Whether you’re dining in or taking out, you can expect fresh ingredients, enticing aromas and impeccable flavours. Step inside this exclusive Camana Bay establishment and see the chefs bring

Union Grill & Bar


Next Door

their dishes to life in front of your very own eyes. The talented team, who originate from Italy, have brought along their world-class skills to deliver beautifully hand crafted fresh food in the form of pasta, pizza, bread, pastries, sweet treats and more. Renowned for their focus on fresh, quick-serve, handmade meals, it’s the perfect place to stop by for those leading busy lives. No time to eat in? Worry not, many of Pane & Pasta’s freshly made pasta and sauces can be purchased online for you to whip up the perfect meal at home. TOMFOODERY KITCHEN & BAR If you head along The Paseo in Camana Bay you will stumble upon Tomfoodery Kitchen & Bar. Best known and loved in Cayman for

it’s fresh, locally sourced, Caribbean-inspired food. After 19 years of working for successful restaurants and chefs in Miami, the Bahamas and the Cayman Islands, Chef Thomas Tennant brought his talent and passion to Cayman serving up some seriously delicious dishes. Try the GFY Burger, a black bean and mushroom veggie patty with Cayman Fiyah truffle aioli, lettuce, tomato, pickled onion or the mouth watering Cayman Style Beef served with coconut rice, peas, fried plantain and coleslaw. Passionate about working with local businesses and farmers on island, the talented team here source their produce to create dishes that are diverse and sustainable, delivering fresh, island flavours to your table. UNION GRILL & BAR When it comes to a spot of fine dining in Cayman, Union Grill & Bar should be on your radar. This seriously stylish restaurant is the place to go for foodies, romantics, friends, families and deal-makers - whatever the occasion, a reservation here is a must. The Manhattan-inspired interiors made up of elegant lighting, plush seating and modern decor create a sophisticated ambience. Whether it’s al fresco lunching on the waterfront, a cosy evening of indulgent dining or a sipping on cocktails at the bar kind of soiree, Union Bar & Grill has it all. From the sophisticated drinks list filled with classic Bond-inspired Martinis, artisan cocktails, fine wines and the freshest G&Ts, to the impressive food menu offering the opportunity to feast on the likes of buttery-soft steaks, fresh fish dishes and delicious salads, as well as a variety of vegan and vegetarian options. There’s truly something for everyone to sit back and enjoy. TRUST CAYMAN / 53


Education is key The outstanding education system is one of the many reasons why families choose to settle in the Cayman Islands.


ear after year, the popularity of relocating to the Cayman Islands continues to grow. Why? Idyllic scenery and tropical climes aside, the Cayman Islands ticks boxes many find appealing - especially families. Low crime rate, high standards of living, good infrastructure and a stable government, as well as an exceptional education system just to name a few. Cayman’s private education sector is a thriving community offering both British and American curricula and plenty of exciting extra-curricular activities for children to enjoy throughout their school lives. When it comes to a Grand Cayman education, standards are kept extremely high. The Cayman Islands Government Office of Education Standards conducts a rigorous audit on all public and private schools every year, ensuring that establishments are up to standard, offering the best service to pupils across the island. While public schools are reserved for the children of Cayman citizens, there are plenty of options available when it comes to finding education for expat children, and the private sector is guaranteed to offer the best education for those starting school in the Cayman Islands. Private schools including Cayman International School, Cayman Prep and High School and St. Ignatius, all accept applications for children who have relocated to the Cayman Islands as well as Cayman citizens, and offer education from elementary right through to high school. Typically, in order to enroll at a private school in the Cayman Islands, parents will need to provide proof that the family is legally residing on the island and children must be endorsed on their parents’ work permits or residency certificates. It is not uncommon to be put on waiting lists, asked for personal recommendations from former teachers and invited to take part in interviews and placement tests. All of which help to ensure that each student is matched with the best possible school. It is advised that parents start the application process early, reaching out to as many schools as possible to avoid disappointment. Tuition costs vary from school to school, but parents can expect to pay from $12,500 USD per year for preschool, to $26,000 USD per year for high school. Special education schools and learning centres are also available on the island. Hope Academy is a private school specialising in special needs education for children of all ages, and the Cayman Learning Centre is a hub offering support services for pupils and parents on a part-time and full-time basis. Exploring the possibility of sending your children to a UK school? The British Schools Fair is an annual event where island families can 54 / TRUST CAYMAN

find out more about the many opportunities available at leading UK boarding schools. Home schooling is also an option on Grand Cayman, with formal registration processes available for parents to complete. Requirements must be met annually for home schooling to continue. More information on how to homeschool in the Cayman Islands can be found on the Department of Education website. There are plenty of options within the private school sector for families relocating to the Cayman Islands with children. Visit the Department of Education Services website for more information.

Image credit: Dart

Image credit: Dart

Wealth isn’t what you make, it’s what you make of it.

Trust, by


Butterfield has been in the business of establishing and administering fiduciary structures for more than 80 years. With an international footprint, we offer access to a wide range of structures and solutions for the growth, protection, and transfer of assets. Let’s have a conversation about how we can meet your needs. Contact us at + 1 (345) 745 6800 or e-mail

BERMUDA Butterfield Trust (Bermuda) Limited (“BTBL”) is licensed to conduct trust, investment and corporate service provider business by the Bermuda Monetary Authority. Address: 65 Front Street, Hamilton HM12, Bermuda. CAYMAN Butterfield Trust (Cayman) Limited (“BTCL”) and Butterfield Fiduciary Services (Cayman) Limited (“BFSCL”) are licensed to conduct trust, investment and corporate service provider business by the Cayman Islands Monetary Authority. Address: 68 Fort Street, George Town, Grand Cayman, Cayman Islands. BTCL and BFSCL are wholly-owned subsidiaries of Butterfield Bank (Cayman) Limited. THE BAHAMAS Butterfield Trust (Bahamas) Limited (“BTBL Bahamas”) is licensed and regulated by The Central Bank of The Bahamas under the Banks & Trust Companies Regulation Act, 2000. Address: 3rd Floor, Montague Sterling Centre, East Bay Street, Nassau, N.P., The Bahamas GUERNSEY Butterfield Trust (Guernsey) Limited (“BTGL”) is licensed and regulated by the Guernsey Financial Services Commission under The Regulation of Fiduciaries, Administration Businesses and Company Directors, etc., (Bailiwick of Guernsey) Law, 2000, as amended, under registration number 101113. BTGL is registered under the Data Protection (Bailiwick of Guernsey) Law 2017 under registration number 10959 and with the Guernsey Registry, under registration number 31645. BTGL’s registered office address is P.O. Box 25, Regency Court, Glategny Esplanade, St Peter Port, Guernsey, GY1 3AP, Channel Islands. NEW ZEALAND Butterfield Trust (New Zealand) Limited (“BTNZL”) is regulated by the New Zealand Ministry of Business, Innovation and Employment. SWITZERLAND Butterfield Trust(Switzerland) Limited (“BTSL”) (the “Company”) is a Swiss registered trust and fiduciary services company and part of the Butterfield Group. The Company’s registered address and principal place of business is at 16 boulevard des Tranchées, 1206 Geneva (Switzerland). The Company is a registered member of and regulated by the self-regulating association OAR-G, a governmentapproved self-regulatory body pursuant to Articles 24 and seq. of the Swiss Federal Act on Combating Money Laundering and Terrorist Financing (“AMLA”).© 2016 Butterfield Trust (Switzerland) Limited. SINGAPORE Butterfield (Singapore) Pte. Ltd. (“BSPL”) (Registration Number 201719034R) is a company incorporated in Singapore with its registered office at 80 Robinson Road #02-00 Singapore 068898. Butterfield (Singapore) Pte. Ltd. is regulated by the Monetary Authority of Singapore and holds a trust business licence issued under the Trust Companies Act (Chapter 336) of Singapore. BTBL, BTBL (Bahamas), BTGL, BTSL and BSPL are wholly-owned subsidiaries of The Bank of N.T. Butterfield & Son Limited.

W rld-leading Ogier’s Trusts Advisory Group, a team specialising in private client, dispute resolution and corporate law, draws together experts with substantial experience across each of Ogier’s locations in the Caribbean, Asia and Channel Islands.

Services and areas our team covers: • Advising on resolving breaches of trust • BVI VISTA and purpose trusts • Cayman Foundation Companies • Cayman STAR trusts • Charitable purpose trusts • Corporate advice to private clients • Court applications concerning trusts • Discretionary trusts • Employee incentives and employee benefit trusts

• • • • •

Estate planning Family Offices Pensions Private trust companies Probate and Estate administration • Regulatory • Trust advice • Trust disputes

Jennifer Fox

William Jones

Anthony Partridge




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“The doyenne of the Cayman trusts world” Chambers High Net Worth Guide

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“Experienced, creative, cool-headed” Legal 500 Caribbean

Deborah Barker Roye Counsel “Very pragmatic” Client feedback

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