Cayman Islands: A Premier Global Hub for Wealth, Innovation, and Family Office Migration
The Cayman Islands continues to evolve as a global hub for trust and estate planning, digital asset innovation, and family office migration. Recent legislative updates, such as the removal of the rule against perpetuities and new virtual asset regulations, reinforce Cayman’s competitive edge.
Additionally, the jurisdiction’s appeal extends beyond finance, with significant developments in healthcare, residency programs, and lifestyle offerings attracting high-net-worth individuals and businesses alike. In addition, there are developments in captive Insurance structures for Family Office clients and Private Family Investment Funds.
In 2025, a key trend will be the review and update of Cayman trusts following the removal of the rule against perpetuities, allowing ordinary trusts to last indefinitely. This legislative change enhances long-term wealth planning for high-net-worth individuals, offering greater estate planning flexibility, strengthening Cayman’s trust law, and improving its competitiveness with other offshore jurisdictions. Despite this, STAR Trusts will remain essential for holistic family structures, commonly used for philanthropic giving, business continuity, and private trust companies. Crucially, intergenerational conversations about wealth succession—when to involve the next generation and how to pass on knowledge—will remain central to family legacy planning and could shape future legislative developments.
The Future of Cayman Trusts in 2025
Anthony Partridge, Partner leading the Private Wealth team, Ogier, who has led the private wealth team in the Cayman Islands for 22 years confirms this view. “A trend I expect to see in 2025 is the review and update of existing Cayman trusts, following the removal of the rule against perpetuities for ordinary trusts. The new legislation, enacted last summer, presents a substantial change for trust practitioners, particularly in relation to long-term family wealth planning for high net worth and ultra-high net worth individuals, as ordinary trusts can now last indefinitely. It effectively provides an opt-in regime that can be applied according to the client’s specific needs. The amendment has three key benefits. It provides greater flexibility for estate planning, including the choice to set up a true dynastic trust, outside of the STAR Trust regime. This enhances the Cayman Islands’ trust law, catering to the needs of global clients and offering significant advantages for long-term succession planning. And finally, it makes the Cayman Islands more competitive with other offshore jurisdictions, such as the Channel Islands, which had already removed the rule against perpetuity.”
The Enduring Role of STAR Trusts in Wealth Planning
Partridge continues, “Despite this legislation, I expect that Cayman STAR Trusts will continue to be a popular vehicle to incorporate into holistic family structures due to the regime’s flexibility. The list of ways these trusts can be used continues to grow, but the most common uses include to enable philanthropic giving, as a special purpose vehicle, to continue a family business, to act as the trustee of a Private Trust Company, and of course for dynastic trusts.”
“What is still clear though is the importance of opening conversations across generations in high net worth and ultra-high net worth families. Two questions that have been at the heart of family succession planning continue to be when to bring the next generation into these conversations and plans and how to pass on the necessary knowledge to continue the legacy of the family’s wealth. The answer is that what works for one family will not necessarily work for another. However, these will continue to be important conversations as we look ahead to how legislation could evolve in 2025.”
Cayman Foundation Companies: A Perfect Fit for DAOs
Cayman Foundation Companies (FCs) have shown themselves ideal for Decentralised Autonomous Organisations (DAOs) who have previously been a curious ‘organisation’ to legislate for. DAO’s do not require members and can exist for specific purposes. Introduced in 2017, FCs have a separate legal personality, can be formed for any lawful purpose, may have beneficiaries (though they lack direct standing), and can run without shareholders.
Andrew Needham, Director, Saffery Trust International, based in Cayman who has co-founded a bank and trust company locally discusses the topic, “Cayman Foundation Companies is the perfect entity to use when establishing DAOs because FCs do not need to have a member and can be for a specific purpose. Introduced in 2017, they provide a separate legal personality. Unlike a trust, a Cayman Foundation is itself a legal person, which can allow for more simplified structuring. In terms of purposes, Cayman Foundations may be formed for any lawful purpose, including both charitable and non-charitable purposes,” He continues, “Cayman Foundations can also choose to have beneficiaries. Unless otherwise specified, the beneficiaries will not have standing against the Cayman Foundation such supervisory function being vested in a “Supervisor”. It can also exist as an orphan entity without any members or shareholders.”
Enhancements in Trusts & Family Office Growth
Changing topic Needham says, “In December 2024, the Perpetuities (Amendment) Bill, 2024 was introduced to enhance the trusts and estate planning sector by removing the mandatory 150-year perpetuity period for existing and future trusts, aligning with industry trends and bolstering the Cayman Islands’ competitiveness in Trusts. I would add that as other jurisdictions experience political and economic instability, Cayman is attracting significant new family offices to the Island. The Cayman Islands Family Office Association formed in 2022 is seeing increased FO membership, bringing families together and attracting world class speakers and guests to the Island such as George Russell and Alex Albon from F1, former presidents and prime ministers and some of the world’s most celebrated chefs.”
Health City Cayman Islands Expands with Advanced Cancer Treatment Facility
In terms of living on the island Needham explains a local development for those who may wish to move to Cayman to benefit from advanced healthcare. “Health City Cayman Islands, which is an advanced tertiary care medical centre and hospital, has expanded its services with the opening of a state-of-the-art Radiation Oncology Centre in Camana Bay. This facility offers advanced cancer treatments, including medical oncology, surgical oncology, radiation therapy, and bone marrow transplants, reducing the need for patients to seek treatment abroad. In addition to cardiac care, neonatal intensive care, and robotic surgery the Cayman Islands is fast becoming the leading health care destination in the region.”
On a lighter note, he says “Cayman’s very own, Justin Hastings recently won the LAAC and will now play at the Masters, the Open and the US Open golf tournaments.”
Cayman’s Strengthened Position as a Premier Jurisdiction for Digital Assets
Cayman is strengthening its position as a leading jurisdiction for digital assets by enhancing its regulatory framework, exemplified by the 2024 Virtual Asset (Service Providers) (Amendment) Bill. This approach ensures alignment with global best practices and offers a stable environment for digital asset funds and service providers. Cayman’s clear regulatory framework, balancing oversight with pragmatism, fosters long-term growth in the sector. As the digital asset industry matures, Cayman’s established financial services ecosystem, expertise, and regulatory clarity make it an increasingly attractive and scalable destination for global innovators. Cayman also is still committed to balancing privacy with international transparency standards, exemplified by the Beneficial Ownership Transparency Act 2023, appealing to global families and trustees.
A Hub for Digital Asset Innovation and Institutional Investment
Glenn Kennedy, Managing Director and Founder at Leeward Management adds his thoughts on digital developments in the Cayman Islands, “We know from our practice that institutional investors and fintech entrepreneurs value Cayman’s clear regulatory framework with our VASP (Amendment) Bill 2024. It balances oversight with commercial pragmatism which will continue to foster long-term growth in the digital asset sector. I think this is an important pillar for our financial services industry. I would also add that as the digital asset industry matures, jurisdictional credibility is becoming more important than ever. Cayman offers a compelling proposition. We have an established financial services ecosystem, deep expertise in structuring investment vehicles, and regulatory clarity. Some jurisdictions are still grappling with digital asset oversight and Cayman provides a scalable environment that attracts innovators globally.”
Cayman’s Trust Structures: Tailored Solutions for High-Net-Worth Families
Of trusts Kennedy says, “The availability of discretionary trusts, reserved powers trusts, and purpose trusts makes Cayman an attractive destination for high-net-worth families seeking tailored solutions for succession planning. As regulatory developments such as the Beneficial Ownership Transparency Act 2023 gain traction, Cayman is still committed to balancing privacy with international transparency standards—an approach that resonates with global families and trustees alike.”
Relocation Trends of UHNWs to the Cayman Islands and Their Impact on Philanthropy
Carrie Harding, Founder at Panthera Private Office, who runs a multi-family office with offices in Cayman, London and Singapore shares some thoughts. “As the Founder of Panthera International, since 2009, a Multi Family Office in Cayman and as a Director on the Cayman Islands Family Office Association I am really meeting family offices wanting to relocate, especially from Canada and the UK. We are also seeing a ‘trickle down’ effect, with UHNW families that call Cayman home really wanting to give back to their local community, they are embracing ‘Cayman Kind’ philanthropy especially in the areas of education, technology and poverty.” As to the specifics she says, “In 2024 in total there were over 40 approvals under the Certificate of Permanent Residence program, and approximately 30 under the 25-Year Residency Certificate for Persons of Independent Means. This adds up to 70 approvals of UHNWs relocating to the Cayman Islands under the various programs available.”
Reside Cayman: Navigating Immigration and Residency in a Growing Cosmopolitan Utopia
Nick Joseph who is the Founder of Reside Cayman and who has been a Cayman Islands lawyer for three decades contributes to the immigration theme. “Modern Cayman is increasingly cosmopolitan and there are now 143 different nationalities represented within the population of less than 100,000 people. As a specialist boutique Immigration firm we assist people to become permanent residents, or become naturalised as a British Overseas Territories Citizen, or obtain the Right to Be Caymanian using a number of routes,” He adds, “Cayman has exceptional communications, a modern infrastructure, a sophisticated and well regarded judiciary, the highest qualities of service (both professional and personal) and education, all cradled within a tropical paradise at the geographic centre of the Americas and infused with a welcoming English speaking population and the assurance of the British Crown.”
A Destination for Wealth Management and Tech
Ingrid Pierce, Global Managing Partner and a member of the Firm’s Management and Partnership Committees at law firm Walkers in the Cayman Islands shares her view, “Beyond traditional private equity, hedge funds and financing structures, the jurisdiction has long been used for family investment funds and asset protection trusts and attracts entrepreneurs, trustees, family offices, and major businesses to the Island.”
Pierce continues, “In recent years, we have seen an influx of family offices and ultra-high-net worth individuals relocating or planning to relocate and establish a base on the Island. Inbound migration occurs for a variety of reasons, including the establishment of safe and secure family life, preservation of private wealth for multiple generations and diversification of real assets in a tax neutral, stable and efficient market. There is huge global demand for structures to invest in and to trade or re-trade digital assets, which has resulted in a significant increase in the establishment of foundation companies and other structures to service businesses in this space. Foundation companies are incredibly flexible and can therefore be tailored to the needs of the family concerned or individual, although their use is in fact much wider in scope. They are also used in setting up DAOs, another rapid growth area. The policy makers and regulators are on top of this industry – as shown by the introduction of dedicated virtual assets legislation – as they too want to ensure that Cayman preserves its reputation as gold standard while keeping pace with innovation. Cayman’s “Tech City” set up within the special economic zone supports technology entrepreneurs and larger businesses setting up in or migrating to the Cayman Islands, which is a continued trend of increased substance in the jurisdiction. On the private wealth and tech side she adds, “We have grown our Private Capital & Trusts team, as well as our FinTech and Regulatory teams, to support our private clients and their advisors and we expect this to continue.” Although she adds, “We are working on DAOs powered by AI but there’s no specific Cayman legislation as yet.
Key Tax and Trust Considerations for UK Expats and Investors
Paul Davidoff a Partner at New Quadrant Partners based in London but has many clients in the Cayman, so adds some more detailed thoughts about the UK tax changes, “My Cayman-based clients typically fall into two categories – UK expat lawyers or retired lawyers who moved to Cayman to work, often with partners or spouses from the UK or elsewhere. Some have done very well, especially those who have been in Cayman for 30+ years and UK expat business owners or retirees living in Cayman. Most of my Cayman clients (who haven’t been UK residents for many years) are happy with the changes to the non-dom rules. However, clients who have been living in the UK for some time and expected to remain there for at least 14 years without detrimental tax treatment are concerned.”
A Solution to Inheritance Tax Uncertainty for Expats
Davidoff continues, “Previously, my expat clients in Cayman have struggled with the concept of “domicile,” fearing they couldn’t prove their new “domicile” in Cayman. Being domiciled in the UK subjects non-UK assets to UK inheritance tax. Many of my clients, with estates worth millions or billions, were frustrated by the uncertainty of whether their non-UK assets would be exposed to inheritance tax. This uncertainty has deterred them from setting up trusts, which could trigger a 20% inheritance tax charge. From 6th April, clients who have been out of the UK for over 10 years will have certainty that their non-UK assets won’t be subject to inheritance tax, even if they haven’t permanently settled in Cayman. I expect this to lead more clients to consider Cayman trusts.”
Inheritance, Income, and Capital Gains Relief
He adds, “Some clients may want to return to the UK to retire or temporarily move for their children’s education. If they’ve been non-UK residents for 10 consecutive tax years, they’ll receive beneficial income tax and capital gains tax treatment for the first four years back in the UK. While this regime is simpler than the current remittance-based taxation, its limitation to four years is seen as a drawback. However, it’s still an improvement over the current system. Returning to the UK for up to nine years won’t trigger inheritance tax on foreign assets. Some clients may be able to avoid inheritance tax sooner if they were not UK domiciled on 30th October 2024 (Budget Day) and became non-UK residents by 6th April 2025, or if they were UK residents for 10 to 19 of the 20 years before leaving the UK. For some, it could take only 3 years. As a transitional rule, non-doms who leave the UK by 6th April 2025 after completing up to 14 years of UK residence will be outside the scope of inheritance tax on non-UK assets, as long as they stay non-UK residents. If they return to the UK, the rules, will change.”
Cayman’s Vibrant Culture: Culinary Delights and Sporting Achievements
A Caymanian resident added some insights on life in Cayman. “The food scene has half a dozen restaurants in Cayman having been featured in Wine Spectator and amongst other culinary highlights, the calendar boasts the annual ‘Cayman Cook Off’. 2025 was the 16th Annual celebration and featured world-renowned chefs such as French chef Eric Ripert, Jose Andres, Aldo Sohm, Andrew Zimman just to name a few of the dozens of guest celebrity chefs that take part. 2025 also welcomed F1’s George Russell as a special guest. And finally, Jordan Crooks has become the first Caymanian to reach the Olympic final in swimming, breaking the world record.”
Conclusion: The Cayman Islands – A Future-Ready Hub for Global Wealth, Innovation, and Lifestyle
The Cayman Islands continues to strengthen its position as a top destination for wealth management, digital innovation, and family office migration. With recent legislative changes in trust laws and digital asset regulations, the jurisdiction offers enhanced flexibility and long-term planning opportunities for high-net-worth individuals and businesses. In addition to its financial services sector, the island’s expanding healthcare infrastructure and high quality of life make it an attractive location for those seeking both business opportunities and a desirable place to live. As these trends develop, Cayman is well-equipped to remain a competitive, stable, and forward-thinking global hub.
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