Making a will in the Cayman Islands

This guidance note provides a brief overview of wills in the Cayman Islands and the importance of having one as part of estate and succession planning.

What is a will?

In simplest terms, a will is a legal document that sets out how an individual intends for their estate to be distributed upon their death. An individual’s “estate” includes any and all assets that are owned by the individual at the time of death, such as real estate, bank accounts, shares, jewellery, cars, designer handbags, comic book collections and bottles of wine.

Cayman has full testamentary freedom, meaning an individual may deal with their estate however they choose by making a will. An estate can therefore be gifted, in whole or in part, to any named beneficiary, which could include people, companies, charities, clubs or churches, or a class of beneficiaries (for example, “all of my grandchildren living at the time of my death”, or “any pupil in attendance at the Truman Bodden Law School”). A will can give gifts immediately, or at certain specified times, or on the fulfilment of certain specified conditions (“I give $1,000 to each of my grandchildren upon their graduation from college”). A will can also create trusts over assets, which may be beneficial to someone with younger children who can inherit under their will, ensuring that the children’s education, living costs and other expenses are taken care of, whilst protecting the capital value of the assets for later in life. It can also make provision for who should have responsibility for children in the event of the parents’ death.

Why do I need a will?

If a person dies without a valid will, they are said to have died “intestate”. An intestate death creates a number of difficulties, but the main issues are:

• No control - the estate is distributed according to the specified provisions under Cayman Islands intestacy rules rather than the person’s actual wishes - their right of testamentary freedom is lost;

• No selection of executor(s) - the permitted list of people who can apply to administer the deceased estate under the intestacy rules is narrow. Under a will, there is total freedom to choose the executor or executors;

• Administrative burden - the probate process under the intestacy rules is slower and more cumbersome for all involved;

• Children - providing certainty for a child’s future, both financial and in terms of who will have care of them, rather than relying on a court process, which can be long and distressing for those involved.  

A properly drafted will provides certainty, helps avoid disputes, allows you to choose who will inherit your assets by way of specific gifts or general distribution, and should simplify the administration of your estate. This is important as dealing with the probate process can be a challenging task during an emotional and difficult time.

It is never too early to prepare a will and, to guard against these preventable issues, you should have one in place as soon as you have any assets, particularly valuable ones, in your name.

Do I need a Cayman Islands will?

Individuals who own any Cayman Islands assets would likely benefit from having a standalone Cayman Islands will, even if they are not domiciled in Cayman and/or they also have assets in other jurisdictions around the world. A separate Cayman Islands will may help streamline probate for the Cayman assets as the probate process can begin soon after death, rather than having to complete the process in another jurisdiction then have that grant re-sealed in Cayman. Careful drafting is required to ensure one will does not inadvertently revoke another.

Who can make a will?

You must be 18 or older and have legal capacity to make a will. A person has the capacity to make a will if they understand that they are making a will, know the nature and extent of their property, recognise the people who might reasonably expect to benefit from their estate, and are not affected by a mental disorder or delusion that influences their decisions.

Each individual must have their own will. Whilst spouses can, and most often do, opt to have similar wills, set up as “mirrors” of each other, each person must have their own legal document.

Do I need a lawyer to prepare my will?

Will templates and AI tools are increasingly available to assist with the will-making process. Though these tools may be useful to understand more about the process and your options, if a will is not prepared in accordance with the legal requirements of your specific jurisdiction, it can be vulnerable to challenge on a number of grounds or could even be entirely invalid. It is therefore important to have legal counsel provide substantial support to ensure your succession planning is secure and remains valid and effective after your death.

Who administers my estate?

Executors are responsible for administering the estate after death. Care should be taken to appoint individuals who are trustworthy, capable and willing to undertake the role. You may also appoint a law firm to act as your executor(s) should you wish.

When should I update my will?

A will should be reviewed periodically and following significant life events, including marriage, divorce, the birth of children, substantial changes in wealth, relocation or the acquisition of new assets.

Conclusion

Preparing a will is an important part of estate planning. For individuals with Cayman Islands assets, a professionally drafted and legally valid Cayman Islands will can help ensure assets pass in accordance with their wishes while reducing delays, stress and administrative complications.

More Information

If you require any information on wills or succession matters in the Cayman Islands, please contact us at abby@beauforts.com.

This guidance note is intended to provide an overview of the law and does not constitute legal advice. No information or statement within this document should be relied upon as a substitute for formal legal advice.