The UK Privy Council has approved several amendments to Jersey’s trusts law which are intended to add to the jurisdiction’s attractions for private clients.
The amendments, contained in the Trusts (Amendment No 5) (Jersey) Law, were adopted by Jersey’s government in November last year. Having been approved by the Privy Council the new law will be registered in the Royal Court on or before 2 November, coming into force seven days later, said Jersey Finance, the island’s promotional body.
The main amendments to Jersey’s trust regime are as follows:
· The introduction of a definition of purpose: this change introduces a definition of purpose which includes the acquisition, holding, management or disposal of property. As such, it will be possible to establish “ownership only” purpose trusts.
· The limitation of actions or prescriptions: this amendment limits a trustee’s liability (subject to fraud or recovery of trust property claims). While previously virtually indefinite, now action against trustees will only be possible up to 21 years after the alleged breach of trust. The limitation does not however apply to foreign trusts where their proper law is the law of a jurisdiction to which the Hague Convention extends.
· The definition of a protector: this amendment introduces a definition of the “protector” as a person, other than a trustee, enforcer or beneficiary, who holds a power, discretion or right in connection with a trust.