Important changes to Trusts Legislation in Guernsey and Jersey

7th February 2008

Carey Olsen in the Channel Islands often send me marketing material. I have just received their Fiduciary Law Group newsletter “Linkup”, which this month looks at important changes in Trust Legislation in Guernsey and Jersey.

The newsletter deals with the change in Jersey to its fideicommis law. This is the establishment of an entity to hold immovable property in Jersey.

‘Until recently, [the law] only permitted the incorporation of commercial or industrial associations, philanthropic societies (“sociétés de bien faisance”) and those associations concerned with culture and sport.

‘An amendment to the Law which came into force on 2 November 2007 now extends the category of association which may be incorporated under the Law so that it also now includes all associations established for public benefit or religious or educational purposes.’

There is also a description of the new Trusts (Guernsey) Law 2007, which is ready for launch, subject only to Privy Council approval.

‘The new legislation - which replaces the 1989 Law - will create a more flexible trusts framework and should assist in preserving Guernsey’s position as a leading jurisdiction for the establishment and administration of trust structures.’

There is also an interesting comparison with the recent changes made to the Trusts (Jersey) Law 1984 in October 2006.