Jersey trust

Jersey trust formation

    trust formation services for Jersey companies
  • Our Clients use jersey trusts for i) owning real estate, aircraft or yachts ii) structuring interests in private family mutual funds or private equity investments and iii) providing for the co-ordinated pursuit of family philanthropic objectives;
  • A private trust company (“PTC”) is a company whose sole purpose is to act as the trustee for a specific trust or a related group of trusts, typically in respect of a particular family and their relatives. The Board of a Jersey PTC can be comprised entirely of the Client’s family members. A Jersey PTC is exempt from the licensing requirements under the Financial Services (Jersey) Law 1998;
  • Trust settlors are sometimes reluctant to relinquish either total control over or their involvement with the trust assets. Where tax considerations permit and provided the PTC is administered properly, a settlor and his or her family may retain a degree of control and involvement without prejudicing the validity of the subject trusts. The use of a PTC can also provide a framework within which a settlor, family members and even certain key employees who have a close working knowledge of the family’s particular business, might be appointed as director(s) of the PTC and participate in the various fiduciary decision making processes;
  • Many ultra high net worth families based in Asia, and who are not familiar with the concept of a trust and the accompanying separation of legal and beneficial ownership, sometimes want to retain control of decisions made regarding any structures they consider to be theirs. The wealth used to fund these structures is often a result of entrepreneurial skill or inherited over generations, so it is understandable they want to retain control. This makes a Jersey PTC very attractive;
  • Despite the different types of trusts that have developed over the last half a century, the most enduring remains the discretionary trust. Approximately 90% of Jersey trusts we draft are fully discretionary ones as they give the maximum flexibility. A prime reason for the popularity of discretionary trusts is when assets are transferred to the trustees, the settlor ceases to own them, which may have advantages from a taxation point of view or for asset protection purposes;
  • This transference of ownership also means that assets can be passed to future generations without the complication of having to obtain grants of probate. The trust may hold assets through a wholly owned company or companies. This is often useful where there are different types of assets being placed into trust, such as shares in a family business, art, investments, boats and aircraft in which case placing them in separate companies enables high risk assets to be segregated from low risk ones;
  • The flexibility offered by this type of trust is also underpinned by the trustees having the discretion as to which of the beneficiaries are to benefit, when and by how much. Although trustees in such cases have a wider discretion it is usual for the settlor to give them some guidance as to how he or she would wish them to exercise their discretion, in the form of a non-binding ‘letter of wishes’ which can be updated and revised from time-to-time;
  • Trust formation in Jersey is created and governed pursuant to the Trusts (Jersey) Law 1984.

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Contact us

For additional information on our trust formation services in Jersey, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Olivia Stanciu, directly:
client relationship officer - Olivia