A STAR trust, which is also called a purpose trust, is established under Part VIII ("Special Trusts – Alternative Regime") of the Trusts Law (Revised). Although STAR trusts are permitted to have beneficiaries, STAR trusts are not required to have beneficiaries but may be created for lawful objects or purposes, whether charitable or not, that are not contrary to public policy, whether instead of or in addition to beneficiaries. As in the case of regular Cayman trusts, STAR trusts are created by a Deed of Settlement, a Declaration of Trust or by a will. Unlike regular trusts, unless a court order is obtained, at least one of the trustees of a STAR trust must be a Cayman Islands licensed trust company.

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STAR trusts are particularly useful in the business context, where they are often used to provide generational estate planning for family businesses, to provide off balance sheet financing or as the vehicle for pension plans and deferred compensation arrangements. Since STAR trusts are not required to have beneficiaries, a person known as the "enforcer" is appointed under the terms of the trust deed. The enforcer is given the same rights as a beneficiary of a "regular" trust would have, namely the right to information about the trust and its administration from the trustee, to inspect and copy trust documents and to bring administrative and other actions to enforce the terms of the trust deed.

Solomon Harris frequently assists clients in the creation of STAR trusts and provides advice to trustees and enforcers on the proper interpretation and management of an existing Cayman STAR trusts. In addition, Solomon Harris can provide assistance in dealing with contentious Cayman STAR trusts, including situations where litigation has commenced. Solomon Harris prides itself on its attorneys' ability to efficiently solve clients' problems with respect to Cayman STAR trusts.

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