Cayman Islands

Cayman IslandsIITAXThe Cayman Islands are tax neutral, having no direct taxation either on individuals orcorporations in the nature of inheritance, income, corporation or capital gains taxes.The government obtains revenue from stamp duty, customs duty imposed on certainimported goods and licensing and registration fees (such as trade and business licences, bankand trust company licences and incorporation and annual fees in respect of companies).IIISUCCESSIONWhere a foreign domiciled person leaves a will disposing of immoveable property locatedin the Cayman Islands, the succession laws of the Cayman Islands are applicable.Where a foreign domiciled person leaves a will disposing of moveable propertylocated in the Cayman Islands, the will is only valid to the extent that it is valid underthe laws of the jurisdiction in which the deceased was domiciled.Courts in the Cayman Islands do not apply the doctrine of renvoi in relation tosuccession to immoveable property.There are no mandatory succession rules in the Cayman Islands.i Estate administrationA deceased’s personal representatives are responsible for administering the estate. If thedeceased leaves a valid will appointing an executor who survives the deceased and iscapable and willing to act, the personal representative will be the executor. In the absenceof such a will, the personal representative will be the administrator.The personal representative will:a obtain a grant of representation;b collect in the deceased’s assets;c pay the deceased’s debts; andd dispose of the estate in accordance with the terms of the will or the relevant rulesrelating to intestacy.A Cayman Islands’ grant of representation (either of probate or letters of administration)is generally required before property in the Cayman Islands can be transferred to thedeceased’s personal representatives or heirs.Where a person has died more than six months from the date of application for agrant of representation, the applicant will need to apply for special leave.Under Cayman Islands’ law, it is possible for a beneficiary to bring an action todetermine any of the following:a questions regarding the administration of the estate of a deceased person;b questions challenging the composition of any class of persons having a claimagainst the estate or beneficial interest in the estate; orc questions concerning the rights or interest of creditors.For purposes of distributing the estate, it may be appropriate for personal representatives,having obtained a grant of representation, to take advantage of the statutory protection85