Trusts are extremely flexible arrangements or relationships that are not only used for managing wealth for the benefit of one or more persons, but are also used in commercial situations for a number of purposes, including asset protection. The essence of a trust is that property is held by one or more persons for the benefit of one or more persons or for identified objects or purposes. Purpose trusts created in the Cayman Islands are called "STAR Trusts"; these will be discussed in a separate article.
Trusts are created when a person, known as the "settlor", transfers property, whether real estate or personal property (including money), to one or more persons, known as the "trustee", to be held for the benefit of one or more persons, known as the "beneficiaries". The settlor may also be a trustee or a beneficiary of the trust. Trusts may be created by a Deed of Settlement made by the settlor during the settlor's lifetime or by a will, in which case the trust is not created until the death of the settlor (who is called the testator under the will). Trusts may also be created by a Declaration of Trust made by a trustee. Regardless of the type of document used to create a trust, the terms of the trust may be drafted to accommodate the needs and desires of the settlor, provided that they are permitted by law.
Solomon Harris frequently assists clients to create Cayman trusts and provides advice to trustees and beneficiaries on the proper interpretation and management of an existing Cayman trusts. In addition, Solomon Harris has experience in dealing with contentious Cayman trusts, including situations where litigation has commenced. Solomon Harris prides itself on its attorneys' ability to efficiently solve clients' problems with respect to Cayman trusts.