Bermuda and Cayman might look like competitors in the world of offshore trust law but they are actually more like team-mates, according to two top legal experts.

“We see Cayman and Bermuda as a cluster rather than rivals,” explained Ben Adamson, director, litigation, Conyers Bermuda, speaking at the Society for Trust and Estate Practitioners Bermuda Conference 2025, held at the Bermuda Underwater Exploration Institute on Friday.

The two jurisdictions are not trying to beat each other, they said. Instead, they are working together to make offshore trust services better.

Both islands are constantly updating their trust laws to attract international business. “We see constant reform from each other’s parliaments to the trust legislation,” Mr Adamson noted. They are watching each other closely, but not to compete — to learn and improve.

Carlos de Serpa Pimentel, partner in the private client and trusts department of Appleby’s Cayman Islands office, highlighted this collaborative spirit.

“The offshore world as a whole benefits when there is more than just one credible jurisdiction,” he said.

Having multiple strong trust centres helps everyone in the industry, in other words.

What makes them similar? They share common legal foundations and a willingness to quickly adapt. “What keeps us together is the flexibility of our legislatures to reform or enhance our trust structures,” Mr Adamson said.

Their approaches are not identical. They have unique innovations such as Cayman’s “star trusts”, but they respect each other’s creativity.

A star trust is a unique Cayman statutory innovation that enables the establishment of trusts where beneficiaries do not have rights of enforcement or to information about the trust, and only an “enforcer” holds the rights to enforce trust terms. They are primarily used in commercial asset holding, dynastic planning and philanthropy.

Mr de Serpa Pimentel said that the trust was “synonymous with the Cayman Islands” and a version of a purpose trust.

Mr Adamson more critically described it as a radical departure from traditional trusts, arguing it was “not a trust at all” because beneficiaries have no property rights.

Mr de Serpa Pimentel defended star trusts, emphasising they have regulatory oversight: trustees must be licensed Cayman Islands trustees and the court retains supervisory jurisdiction.

Importantly, star trusts have been successful, he said, stating there have been “tens of thousands” established, with there “never having been a successful challenge against the validity of star trusts”.

The bottom line is that these offshore financial centres are not locked in a cut-throat battle, they said. They are more like team-mates in a global financial league, each bringing their own strengths.

As Mr Adamson put it, they are evolving trust laws “shoulder to shoulder”.