On 22 August 2024, the Perpetuities (Amendment) Act, 2024 came into effect (the “Amendment”). The Amendment is a welcome enhancement to the Cayman Islands trust and estate planning sector as it abolishes the mandatory perpetuity period of 150 years for Cayman law ordinary trusts (except for trusts holding land or interests in land situated in the Cayman Islands). The effect of this is that such trusts can now last indefinitely. Previously, ordinary trusts that were established in the Cayman Islands were required to vest within a 150 year perpetuity period.
In respect of existing ordinary trusts, it is possible for the trustees of the trust (amongst others) to apply to the Grand Court of the Cayman Islands to disapply the rule against perpetuities, the effect of which will be that such trusts can last indefinitely.
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.
