While trusts have been established in Jersey for many years their operation is now governed by a modern, comprehensive statute entitled The Trusts (Jersey) Law 1984 (the ‘Trusts Law’).
Are trusts illegal in Jersey?
Subject to this Law, a trust shall be recognized by the law of Jersey as valid and enforceable. (d) administration of any trust property of a foreign trust is carried on in Jersey. This Part of this Law shall apply only to a Jersey trust. (3) A unit trust may be created only by an instrument in writing.
What is a trust Jersey?
It is an arrangement intended for the safekeeping, management and eventual disposal of property. Jersey is a leading jurisdiction for the establishment and management of trusts. The Island has a large and well-qualified professional trust sector, modern trusts legislation and an effective judicial system.
Who can be a trustee of a Jersey trust?
“trustee”: this may be an individual or a company. In Jersey, there is no requirement for a corporate trustee to have particular status as a “trust corporation”. A settlor must choose a trustee with care, to ensure as far as possible that the trustee will carry out the terms of the trust competently.
Does a trust own assets?
Unlike a person or a company, a trust is not a legal entity that can own property. This is because a ‘trust’ is just a relationship between the legal owner (the trustee) and the beneficial owners (the beneficiaries).
Why do you need an offshore trust in Jersey?
One of the main reasons for setting up an offshore Jersey trust is to hold assets in a tax efficient way. To put that into context, once you place assets in a trust, they are no longer yours.
What can a Discretionary Offshore Trust do for You?
A Discretionary Offshore Trust enables the trustee to decide on the distribution of profits for different classes of beneficiaries.
What are the rights of a beneficiary in Jersey?
For example, any beneficiary has a legal right to force a trustee to act in accordance with the terms of the trust instrument and the Trusts Law. Unlike the position in certain other offshore jurisdictions, a Jersey trust can be of unlimited duration.
Can a UK resident settlor create a Jersey trust?
However, in order to create a completely tax-free trust, settlors cannot be Jersey residents (or citizens of or domiciled in the UK). The trust is created when the settlor executes a Trust Deed. Settlors may request trustees to manage the assets in a particular manner.
