Trusts and their uses

Trusts are used for the following purposes:

(A) To protect assets from being attacked by possible lawsuits . . . This type of use has led to the establishment of what is known as an Asset Protection Trust which has proved to be very effective when properly created.
(B) Used as a means of avoiding or mitigating the effect of burdensome laws and regulations, particularly those of countries imposing heavy taxes and death duties and exchange control regulations;
(C) To enable real or personal property to be held for persons who, for one reason or another, cannot or do not wish to hold and/or manage such property themselves;
(D) To make provision for dependents, friends and families privately; persons living in jurisdictions whose laws require a certain portion of their assets to be left to members of the family, e.g., Latin American countries, may establish trusts in the Cayman Islands which are not subject to forced heirship provisions of their country of residence or domicile. Since 1987 the Trusts Law allows a trust to expressly select its governing law and jurisdiction. Persons changing their country of residence or domicile, or changing their citizenship may establish a trust prior to changing residence, domicile or citizenship and enjoy considerable advantages, particularly in relation to death duties.
(E) To preserve property so that it can benefit a person or class of persons in succession;
(F) To protect family property from spendthrifts;
(G) To provide for the education of family and friends;
(H) To make a gift in the future and to provide for family members in the circumstances which have or have not yet arisen;
(I) To own trading or investment companies;
(J) To enable two or more persons to hold land;
(K) To provide pension schemes for employees and their dependents;
(L) To make investment through skilled persons, thus freeing time for other business;
(M) To minimize the incidence of income tax, capital gains tax, transfer tax, estate duty and other forms of taxation imposed in high tax countries.