The Cayman Islands government has released a bill amending the Cayman Islands Trusts Law to correct deficiencies and technical errors in the law.
“The proposed amendments to the Trusts Law and the Property (Miscellaneous Provisions) Law are part of a tidying up exercise to correct long-standing deficiencies, including one or two changes to correct technical errors made in the original legislation which have emerged over time,” said Maxine Bodden, an associate with Maples and Calder, who participated in the discussions of the draft legislation through her involvement as a member of the Society of Trust and Estate Practitioners Council in the Cayman Islands.
Making Cayman more attractive
“Although the proposed amendments do not reflect any significant change of policy or new products for the Cayman Islands trusts industry, the amendments are timely,” she said. “They reflect changes in technology and the changing marketplace in the industry and are designed to make the Cayman Islands more attractive when compared with its competitor jurisdictions as a possible location for commercial or private wealth trust structures.”
The proposed amendments will change about a dozen provisions in the law. They include, for example, eliminating the power to remove a trustee merely because the trustee has left the island for more than 12 months, and providing trustees with the power to insure trust property for any adverse event, not just for fire.
The provisions also correct a technical defect that allows controlled subsidiaries to be the trustee of a STAR Trust as well as a registered private trust company.
Another change will extend the rule that charitable trusts may benefit the public wholly or partly, or a section of the public outside the islands, in all trusts regardless of when they were created.
The bill may be debated in the Legislative Assembly this month.