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Flexible Cayman Island Laws for Asset Protection |
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The Cayman Islands has been one of the most popular financial havens, having numerous asset protection privileges. With more than 500 banking institutions serving clients all over the world, Cayman laws have been designed to protect each and every financial investors and creditors.
The Statute of Elizabeth, which has been imposed on the Cayman banking institutions and clients ever since, has now been replaced by the Fraudulent Disposition Act of 1989. Most laws imposed on offshore financial transactions has targeted trust accounts. Upon the enactment of the new Cayman law, settling a trust account on the Cayman Islands has never been so favorable. Added to the fact that this island has strong secrecy laws, the Cayman offshore trust business has always been pretty strong.
Generally speaking, the new Cayman law has included provisions that generally heighten asset protection. For example, a trustee could not present a suit for bankruptcy in behalf of all its creditors. The Cayman court will only entertain suits if it is presented by the creditor for him. Aside from this, a trust opened by a settler not living in the island itself could chose to employ the protection of the Cayman law. In order to do so, the settler must submit the trust application on advance for approval. This flexible option could be availed even if neither the settler nor the trust property is within Cayman territory.
An advantage in choosing the Cayman law in having jurisdiction over the trust is that the trust could not be voided or forcefully closed by any law of any jurisdiction even if it is the settler’s home country.
Having formidable secrecy laws, good trust security laws and the flexibility of jurisdiction have made the Cayman to be one of the largest financial havens in the world. And even though most settlers come from countries that keep an eye on offshore trust transactions, the Cayman still withstand as one of the most favorable choice to settle large assets especially concerning trust accounts.
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