JERSEY TRUSTS
The Jersey law of trusts is contained principally in the Trusts (Jersey) Law 1984, as amended by subsequent legislation. It embodies traditional trust principles developed by English law. Where Jersey law is silent on an issue relating to a Jersey trust, or where there is no judicial authority in Jersey to cover the matter, then the Jersey courts will refer to English and Commonwealth case law for guidance.
In Jersey, there are no separate courts of law and equity. But this does not mean that an equitable jurisdiction does not exist. The courts have referred to their "equitable" jurisdiction, and Jersey's Royal Court has expressly confirmed this. Clients can, therefore, have confidence that, in appropriate circumstances, the courts will be flexible in their interpretation of the law to ensure natural justice is done.
Additional Information:
Jersey boasts a well-established and respected legal framework for trusts, offering stability and reliability for settlors and beneficiaries alike. The jurisdiction's adherence to traditional trust principles, coupled with its flexibility in adapting to modern legal developments, makes it a preferred choice for international trust structures.
Owning Private Trust Companies
A Private Trust Company (PTC) is an effective structure that offers many benefits. A PTC acts as a trustee of family trusts, allowing active management of the trusts to be undertaken by the settlor and his family. This arrangement provides greater control and flexibility over trust assets while maintaining confidentiality and privacy.
Assets and Confidentiality
A Jersey trust creates a private relationship between a settlor (or settlors), trustees, and beneficiaries, therefore acting as a suitable vehicle to hold a variety of assets within a confidential legal arrangement. Jersey's robust confidentiality laws ensure the privacy and anonymity of settlors and beneficiaries, safeguarding their interests and preserving their wealth.
Planning Vehicles
The discretionary trust is regarded as the prime offshore vehicle used to hold family assets, ensuring that their wealth is held in a safe and discrete environment. Jersey's flexible trust laws allow for the establishment of tailored trust structures to meet the specific needs and objectives of settlors and beneficiaries, providing a secure and efficient platform for wealth preservation and succession planning.
Holding Assets
Jersey trusts are often used to hold assets off-balance sheet or to "orphan" special purpose vehicles or "SPVs". Jersey purpose trusts are used to achieve this, often in conjunction with Jersey companies acting as the "SPV". This structuring offers advantages in terms of asset protection, tax efficiency, and regulatory compliance, making Jersey a preferred jurisdiction for international business and investment activities.
Charity and Philanthropy
High net worth families and corporates who have amassed wealth in offshore locations from their international businesses and other activities are increasingly seeking to create offshore entities to secure charitable and philanthropic objectives. Jersey provides a conducive environment for charitable and philanthropic endeavors, offering flexible and robust structures to support the charitable missions and objectives of individuals and organisations.