When it comes to succession planning, rules and regulatory requirements will always evolve, but one principle remains: families need a structure that offers security, flexibility, and control. Traditional trusts often mean surrendering authority to trustees, while companies offer control but lack protective features.
Introduced in 2017, the Cayman Foundation Company bridges this gap by combining the succession benefits of a trust with the operational flexibility of a company.
Whether your focus is philanthropy, general partners of a partnership in an investment fund structure, or wealth preservation, a CFC can be formed for any lawful purpose and tailored to meet your unique wealth objectives.
Here are four reasons why a CFC could be the ideal structure for your family’s future.
As a separate legal entity, a Cayman Foundation Company owns its assets outright rather than the founder, directors, or beneficiaries, and benefits from limited liability under the Foundation Companies Law 2017, ensuring the individuals involved are not personally responsible for the foundation’s debts or obligations. Cayman’s legal framework, backed by a respected judicial system and the Foundation Companies Law, adds further protection by disregarding claims of foreign heirship or matrimonial rights made under non-Cayman law. These safeguards create a strong shield for assets, keeping them secure even in cross-border disputes.
2. Founder-Led Control
Unlike a traditional trust, a Cayman Foundation Company empowers founders to retain control for as long as they choose, free from forced heirship rules. Founders can appoint or remove directors, reserve key powers such as veto or approval rights, and adapt the foundation’s strategy as circumstances change. For added independence, members can even be removed entirely to create an orphan structure. With no minimum capital requirement and the ability to accept additional contributions over time, a CFC offers a scalable solution for evolving wealth objectives.
Governance of a Cayman Foundation Company can be fully customised. It may include any number of members, directors, supervisors or none at all, allowing you to design a structure that fits your objectives. Strategic influence can be preserved through reserved powers in the charter, acting as a protector, or issuing letters of wishes to guide asset management and distribution. For added confidentiality, private bylaws can supplement the constitution without being filed publicly, giving you greater flexibility in setting rules for operations.
A Cayman Foundation Company can exist indefinitely if its constitution does not set a termination date. This permanence is ideal for families seeking to preserve and manage wealth across multiple generations without the risk of forced dissolution or asset transfers after the founder’s death. By avoiding costly reorganisations and administrative disruptions, a CFC ensures continuity for charitable or legacy-driven goals, providing true peace of mind for the future.
At Suntera, we understand that structuring family wealth is about more than compliance; it’s about creating security, flexibility and peace of mind for generations to come. Our Cayman specialists will guide you through every stage of establishing a Cayman Foundation Company, from initial set-up to ongoing administration, ensuring your structure works for you and your family.
Contact us today and access expertise trusted by global families.
DIRECTOR, HEAD OF PRIVATE WEALTH - CAYMAN
Angella is a Director of Suntera (Cayman) Limited and leads the trust and fiduciary team. She has over 25 years’ experience in assisting high net worth individuals and corporations with their trust, wealth and succession planning, asset protection and acquisitions needs.
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