Jersey is a party to the International Hague Convention on the Law Applicable to Trusts and on their Recognition. Unlike the position in certain other offshore jurisdictions, a Jersey trust can be of unlimited duration. 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. The Trusts Law also imposes fiduciary duties on trustees, regulates the administration of trusts and provides rights of beneficiaries. Article 54 of the Trusts Law confirms that the trust assets constitute a separate fund and do not form any part of the personal property of a trustee. The Trusts Law provides that a trust exists, and will be enforced by the Jersey Courts, where a trustee holds or has vested in him assets for the benefit of a beneficiary, whether or not yet ascertained or in existence, or for a specified purpose. 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’). His expression is often contained in a letter of wishes which, although not legally binding, will generally be considered by the trustee to be of persuasive effect when performing his duties and, for example, determining to make a distribution out of the trust fund. In addition to the trust instrument it is also usual for a settlor to indicate to the trustee his wishes as to the management and disposition of the trust fund in the future in a less formal manner. The trust instrument will usually provide that the trustee has the power to manage the trust assets in accordance with the terms of the trust instrument and the strict duties imposed on the trustee under Jersey law. This is for the benefit of all parties as it will ensure that the settlor, the trustee and the beneficiaries know precisely what their respective rights and duties are. The instructions from the settlor to the trustee as to the disposition of trust assets will normally be contained in a document called the trust instrument. Introduction to the trust conceptĪ trust is a legally binding arrangement whereby a person (known as a settlor) transfers assets to another person (known as a trustee) who is entrusted with legal title to the trust assets, not for his own benefit, but for the benefit of other persons (known as beneficiaries, who may include the settlor) or for a specified purpose. The Island's relationship is now enshrined in our membership of the UK-EU Trade and Cooperation Agreement (the ' TCA'), which was reached prior to the end of the Transition Period on 31 December 2020. The legal system is derived in part from the customary laws of Normandy but has been strongly influenced by English law and the Judicial Committee of the Privy Council remains the Island’s ultimate court of appeal.Prior to the UK's departure from the European Union (the EU), the Island's relationship with the EU was set out in Protocol 3 of the UK's 1972 Accession Treaty. By constitutional convention established over some 900 years the Island has complete autonomy in all matters of internal government, including taxation. It is the largest of the Channel Islands and lies 15 miles off the north-west coast of France. Jersey does not form part of the United Kingdom but is a self-governing dependency of the British Crown. Background Jersey’s constitutional position This memorandum has been prepared on the basis of the law and practice as at September 2022. It is not intended to be comprehensive in its scope and it is recommended that a client seek legal advice on any proposed transaction prior to taking steps to implement it. It is intended to provide a summary of the main legal requirements and general principles applicable to the establishment and administration of trusts. This memorandum has been prepared for the assistance of clients considering creating a trust in Jersey.
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