Changes to Jersey's Trusts Law have come into effect today after being approved by the Privy Council.
The move follows a “root and branch” review of the Trusts (Jersey) Law 1984 which took place last year, and the changes are designed to improve the Island’s position as a trust jurisdiction by making its legislation internationally competitive.
In response to developments in other offshore jurisdictions, amendments to the law include:
- Introduction of settlor-reserved powers – such as power to remove/appoint trustees, investment advisers and managers and to change the terms of the trust
- Allowing a trustee to delegate any trusts or powers if permitted by the terms of the trust
- A conflict of law provision – the validity of a Jersey governed trust will not be affected by any rights given to a person by another jurisdiction
- A proposals to remove the existing automatic ‘personal guarantor’ provision for directors of corporate trustees – to make it more attractive to establish private trust companies on the Island.
Beverley Le Cuirot, director of marketing at Jersey Finance, says the changes brought in under the amendments are the most significant since the original trust law came into effect in 1984, and aim to clarify and enhance the existing law and bring greater certainty to key questions concerning the validity of Jersey Trusts.
She says: “In addition the amendment will remove a number of provisions in the principal law which were perceived by some practitioners as limiting the attractiveness of Jersey as a centre for very high net worth private family trust business.”
As a result of the changes, Le Cuirot says Jersey Finance and the Jersey Association of Trust Companies is planning a seminar in London on the 21 November, where trust professionals from Jersey will highlight the effects of the changes to lawyers, accountants and other service professionals.
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