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Welcome to the latest edition of the Conyers Private Client & Trust MENA Bulletin.
In this Bulletin, we offer practical guidance on private wealth structuring tools for HNWIs and their families in the Middle East. Legislative changes in both the Cayman Islands and the British Virgin Islands have made our jurisdictions more attractive to Middle East clients, enabling the creation of more sophisticated legal structures that in some cases can now continue in perpetuity. Our rapidly developing common law is also enabling our legal structures to position assets effectively against potential threats, such as lawsuits or enforcement orders, which may not be available in other offshore jurisdictions.
The team has significant cross-border expertise including in connection with probate and administration matters, obtaining grants of representation and the resealing of foreign grants in the courts of the Cayman Islands and British Virgin Islands. We also advise Middle East clients and their families on the structuring, management and transfer of wealth through Cayman Islands and British Virgin Islands trust structures, Cayman Islands foundation companies and other corporate succession vehicles as further outlined in this Bulletin.
The team has a strong focus on all manner of contentious issues in the private client space, regularly dealing with multi-party contentious applications and contentious trust and estate disputes. In this Bulletin, we report on a recent Cayman Islands case in which Conyers represented the Settlor and Primary Beneficiary seeking to set aside the Cayman Islands trust for reason of mistaken advice.
Whether navigating complex cross-border transactions or establishing private wealth frameworks, our experienced team remains at the forefront of offshore legal strategy.
Legal Excellence
The Cayman and BVI Private Client practice is ranked in the Chambers and Legal 500 directories as a notable market leader in this sector.
Robert Lindley leads the firm's Cayman and BVI Private Client and Trust practice. Robert has been consistently ranked by Chambers and the Legal 500 directories and is in Band 1 and considered to be a 'Leading Partner' for Offshore Trusts, including being ranked as one of the best offshore trust lawyers in Spear's Tax and Trust Indices.
Sally Peedom is also ranked by Chambers and the Legal 500 directories.
Private Trust Companies for Clients in the Middle East
The question of who should act as trustee of a trust is fundamental to any wealth planning structure. For wealthy families and entrepreneurs in the Middle East, the choice is often between appointing a professional trustee or establishing a Private Trust Company (PTC), a bespoke entity incorporated solely to act as trustee of one or more family trusts.
A PTC allows families to retain a greater degree of control and involvement in their wealth structures while preserving the legal validity of the trust. For many Gulf families, where family governance, continuity, and confidentiality are essential, a PTC provides the ideal balance between independence and control.
Cayman Islands STAR Trusts for Clients in the Middle East
A STAR trust is a form of trust exclusive to the Cayman Islands and one that has a wide variety of practical applications. Its unique features provide clients with structuring options often not possible with ordinary trusts, making it particularly useful in both private wealth planning and commercial transactions. For families and institutions in the Middle East, STAR trusts offer a secure, flexible, and confidential vehicle for managing wealth across generations, safeguarding family businesses, and supporting philanthropic goals.
Cayman Foundation Companies in the Middle East
Cayman Foundation Companies are innovative structures that combine the features of a company with those of a trust. Since their introduction in 2017, they have become increasingly popular and are now firmly established as a flexible and reliable structuring vehicle. For clients in the Middle East, where family enterprises, legacy planning, and philanthropy play central roles in wealth management, Cayman Foundations offer a powerful solution that is internationally recognised, tax-neutral, and adaptable to both private wealth and commercial contexts.
BVI VISTA Trusts for Clients in the Middle East
Trusts established under the British Virgin Islands' special trust regime are referred to as "VISTA Trusts". VISTA Trusts are a form of trust unique to the BVI with special features that make them particularly attractive to those who may be reluctant to relinquish complete control of a business or company to a trustee. For wealthy families and business owners in the Middle East—many of whom oversee significant family businesses and complex cross-border investments—the VISTA Trust provides a powerful tool to combine asset protection, succession planning, and continuity of control.
Cayman Court Agrees to Unwind the Establishment of a Trust Tainted by Mistaken Advice as to the Settlor's Domicile
Conyers is pleased to have acted for the Settlor in a successful application to have the establishment of a Cayman Islands discretionary trust, the S Trust, set aside from its inception. The application to the Cayman Court was made under section 64A of the Cayman Islands Trusts Act (2021 Revision), which provides relief in relation to mistaken exercise of fiduciary powers. The case demonstrates the flexibility of the section 64A jurisdiction and the Cayman Court's pragmatic approach to delivering relief in unforeseen circumstances which may arise in the administration of trusts.
Cayman Islands Reform: Perpetual Trusts
The Perpetuities (Amendment) Act, 2024 (the Act) has now been in effect for just over a year marking a significant evolution in the Cayman Islands trust law framework. This legislative reform allows for the disapplication of the traditional rule against perpetuities in respect of new ordinary trusts in the Cayman Islands. The amendment marks a significant shift in flexibility and certainty for trust structures — a change with particular resonance for clients from the Middle East and other jurisdictions where enduring asset-holding vehicles have long been familiar.
Arbitration in Trust Disputes
The use of arbitration to resolve trust disputes is gaining momentum in offshore jurisdictions, with the Cayman Islands emerging as a progressive forum for trust arbitration. Following the enactment of the Arbitration Act in 2012, Cayman has seen a growing interest in incorporating arbitration clauses into trust deeds as settlors and trustees seek more private, flexible and efficient dispute resolution mechanisms.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
