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Amanda Bako of Rawlinson & Hunter explains why the appointment of a professional executor can be the safe choice by relinquishing the burden and maximising the efficiency of estate administration. With a rising number of contested wills and disputes between executors, it is increasingly crucial to ensure that appropriate, qualified executor(s) are appointed. More individuals are selecting a professional executor rather than leaving a loved one or close friend with what can very quickly become a burden which they are not equipped to manage. Where an estate consists solely of a private residence and cash, it may be preferable to choose a family member or friend to act as executor. However there are a number of circumstances where selecting a professional executor would be beneficial. COMPLEXITY Assets With high net worth, assets held by individuals can be varied and sophisticated, ranging from financial investments, commercial and residential real estate, and private company shares to business assets. A suitably qualified and experienced professional will be able to manage multiple asset classes and organise the effective disposal of these assets to provide maximum value to the estate. Many professional executors will have a global team of specialised individuals who are able to tackle the complexities of various asset classes in an efficient manner. Cross-border Not only can assets be located in different jurisdictions, many families will also have members located across the globe. These factors can make the administration of an estate extremely onerous, lengthy and stressful. This can require engaging legal and tax advisors in several jurisdictions and a professional executor will have the time capacity and relevant connections to assist. Testamentary Trusts Where there are minor children or vulnerable family members involved, it is common for a will to create a testamentary trust to provide for their ongoing needs. In these situations, it is helpful to choose a trust company who can act as both the executor and trustee for greatest efficiency. CONFLICT Unfortunately, many estates result in family conflict either due to the terms of the will or oftentimes because of the choice of executor, for example, where a parent chooses one child over their siblings. At what is already an emotional time, it is of benefit to have an impartial, independent executor who is able to diffuse any tension or disputes that may arise. LIABILITY An executor has a duty of care when administering an estate and to its beneficiaries. Dealing with a complex or high value estate could lead to mistakes that cause loss to the estate. Executors can be held personally liable for any claims. Choosing a professional executor removes potential personal liability and financial burden. COSTS There is a perception that appointing a professional executor can be expensive. However, when considering a complex estate, it is likely that an inexperienced executor may need to spend additional time consulting with legal and professional advisors, which could result in significant costs being incurred, but also may not maximise asset realisations for the benefit of the estate. Author: Amanda Bako, FCCA, TEP is a Partner with Rawlinson & Hunter in the Cayman Islands. Rawlinson-hunter.com

Trapped assets, in particular those with limited value, are on the rise and as volatilitycontinues to grip the stock marketsand the worldin general, we are seeing more and more open-ended and closed-ended funds who wish to proceed with dissolution but remain in limbo, with no end in sight. Not only does a prolonged wind-down result in unnecessary time spent by management but can also result in excessive service provider costs, to the detrimentof investors. We have found that when paired with a solvent voluntary liquidation, the establishment of a liquidating trust for the assignment of trapped assets can be an effective solution for any fund wishing to seek long-term asset realisation. The objective of a liquidating trust is to expedite the wind-down process and to create efficiencies, allowing investors to receive proceeds in an orderly manner and removes the potential of liability claimed against the funds and/or its directors. This pairing is not only beneficial to the fund but, where relevant, can also provide cost savings with existing management, its principals and directors as the trustee can engage with existing management, its principals, and directors in a consulting role so that asset background and understanding is not lost during the process. Alternatively, existingmanagement can also choose to remove themselves entirely from the process should they wish not to assume any significant role overall. Why a liquidating trust? A liquidating trust can be established for the benefit of any asset type, save there being no restrictions or contingent litigation, and can be established specific to the requirements of the settlor. Asset types that we have assisted to structure into a liquidating trust recently include a potential class action claim which has yet to be consummated, shareholding in an African mining company, a portfolio of small to mid-cap publically listed equities, litigation stubs and illiquid investment portfolios with limited secondary market opportunities. The form of liquidating trust can vary in both structure (standalone or umbrella) and type (discretionary, revocable, irrevocable trusts, etc.) although usually, a discretionary STAR trust is bestsuited to situations of prolonged wind-down due to the flexibility of the objects i.e. the trust can be set up for a purpose or for persons or indeed a mix of both. Investorsmay be named as discretionary beneficiaries and would not have entitlement to the assets,other than on a realisable event. This means that investors not only benefit from future assetrealisations, which could have been disclaimed or written-off priorto commencing voluntary liquidation, but also from thecost efficiencies in pairing the establishment of a liquidating trust with a solvent voluntary liquidation. A regulated trust company, would act as trustee and have absolute discretion over the management and administration of the STAR trust. Although, where relevant, the trustee may also seekthe assistance of liquidation professionals to manage the assets realisation, be it asset auctions or sales in the secondarymarket, as well as those principals or directors who wish to remain engagedas a consultant. Furthermore, a STAR trust requires the appointment of an enforcer who will ensure that the trustee fulfils theirfiduciary obligations in accordance with the trust instrument. This role may be delegated to a third party and further provides comfort to investors that the liquidating trust is being administered for their benefit. R&H Restructuring, are experienced in delivering successful wind-downs and offer a wide range of flexible services to open-ended and close- ended funds in the Cayman Islands that are wanting Author: Daniel McGrath Manager Rawlinson & Hunter LLP, Cayman Islands Daniel.McGrath@rawlinson-hunter.com.ky