The economic, political and social upheaval of 2020 has caused many families to reconsider their long-term financial plans. The desire to protect wealth and business assets, and to rationalise and consolidate management and administration in a well-regulated and safe place, has generated much new business for the Cayman Islands financial sector with a renewed movement of wealth into Cayman structures and, in some cases, the relocation of the family itself to the Islands.
Traditionally, asset protection meant one thing - limiting a creditor's access to a debtor's property by lawful means. Over the past twenty-five years however trust and foundation legislation in many offshore centres has become more sophisticated and now addresses a broad spectrum of concerns including protecting assets against fragmentation caused by forced heirship, disruption caused by litigation and family disputes, and unwanted publicity.
This article, authored by Cayman Islands partner David Pytches, looks specifically at Cayman Islands trusts and foundation companies and the protection they offer.
First published by Private Banker International, March 2021.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
