Offshore Trusts

If you have precious assets you want to secure from predatory lawsuits, retroactive and punitive government regulations, and other future economic and political instabilities, setting up an offshore trust account in the Cayman Islands is a wise thing to do.

What is a Trust Account?

In principle, a trust is formed when an individual or a company, what you would call the trustee, holds an asset “on trust” for somebody, or the beneficiary. Apart from the trustee and the beneficiary, the other vital component to this arrangement is the grantor or settler, the original asset owner, who assigns the property to the trustee. The economic value of this trust fund is held by the beneficiary, even if it is named under the trustee, so the fund is protected from the trustee’s creditors.

In essence, a trust fund is a grantor’s means of providing financial security to loved ones through the protected assets. But it is not solely a means of passing on wealth. It can be used as a way of pooling arrangements for a collective investment or holding shares to joint ventures and partnerships.

How Can Cayman Islands Banks Protect my Assets?

The Cayman Islands is one of the busiest financial centers in the world, with long-time epxerience dealing with high net worth individuals. Banking experts in the islands have a vast knowledge of how individuals can secure assets for themselves and their loved ones.

To create an offshore trust account in the Cayman Islands, you have to consult privately with an experienced trust manager first. By talking to a trust manager, you’ll know which type of trust fits your personal or business needs.



Entrepreneurs, professionals, doctors - anyone with assets they want to secure - may create an offshore trust account. A trust is created when an individual transfers his assets to a financial institution’s possession, who then handles all responsibilities related to the assets and the corresponding beneficiaries.

Why Create an Offshore Trust Account in the Cayman Islands?

The Cayman Islands, like Switzerland and other financial havens, have favourable secrecy and trust laws, which make it almost impossible for any entity to raise a claim on your asset even in the event of great political or financial pressures. This type of setup is called an Offshore Asset Protection Trust or OAPT.

By setting up an Offshore Asset Protection Trust in the Cayman Islands, you will be able to clearly separate the asset’s legal ownership, which is the role of the trustee, from the asset’s beneficial ownership, which goes to the beneficiaries. The trustee, in this case the Cayman Islands bank or trust manager you choose, guarantees you that they will take full responsibility of your assets and distribute them to the beneficiaries according to your wishes.

Things to Consider When Setting Up an Offshore Trust Account

With the increasing use of the internet today, setting up offshore trust accounts has become more convenient.  Consider the following items when setting up an offshore trust account in the Cayman Islands:

•    Tax laws in the individual or company’s country of origin, as properties in trust are tax-exempt
•    Trust funds also have limitations - namely that they have a life of only 99 years, and they cannot engage in business, since they are used only to manage assets.  Should these items be of critical importance to the grantor, then other financial vehicles must be considered.
•    A trustee, once selected, cannot be replaced.  As such, a thorough selection is of utmost importance.  Grantors and settlers can choose to engage the expertise of a legal firm with sound knowledge of both the investment world and financial law. There is also the option to engage an investment company.  The Cayman Islands Monetary Authority can provide an updated listing of reputable financial services companies.

The big advantage in setting up an offshore trust account in the Cayman Islands instead of anywhere else is the vast experience of its trust managers in protecting high-profile assets. Furthermore, if you want to go to the Cayman Islands to personally talk to your trust manager, you can always enjoy your stay by relaxing in this beach paradise home of white sand beaches, clear blue waters, and rustling green palm trees.