trusts

Jersey trusts are effective in separating beneficial and legal ownership of assets in a tax efficient manner. Locations for offshore trusts, including Jersey, are usually jurisdictions where English common law and equity is the foundation of the legal system. Trust formation in Jersey is straightforward and can normally be completed in a few days.

types of trusts

discretionary trusts
Frequently used flexible trust. The trustee has scope in nominating beneficiaries and the distribution of the trust fund. The settlor can pass on wishes regarding distribution of assets, income or capital and may provide the trustees with a private letter of wishes with guidance on how to administer the trust and manage the assets.

interest in possession trusts
Beneficiaries are entitled to income and capital from the trust as prescribed in the trust instrument.

accumulation and maintenance trusts
Almost always established for the benefit of children. The trust instrument specifies how the trust fund will be used up to a predetermined age and surplus income is accumulated by the trust. Once this age is reached, the beneficiaries are entitled to receive income, capital and assets.

special purpose trusts
Flexible trust set up for a specific purpose and without named beneficiaries.

key features of Jersey trusts

• no Jersey taxes apply to trusts where all beneficiaries reside outside Jersey
• no Jersey tax on distributions to non-resident beneficiaries
• terms of the trust can remain confidential as there are no registration requirements
• appropriate planning protects against overseas expropriation of assets, high taxation and forced heirship

uses of Jersey trusts

• preservation of family wealth
• benefit from tax advantages and exchange controls in both countries when immigrating or emigrating
• protects assets from laws in countries which dictate how assets are distributed after death
• secures and protects personal assets

key benefits of Jersey trusts

• anonymity and confidentiality
• flexibility
• tax planning opportunities
• separation of beneficial and legal ownership
• protection, preservation, management and enhancement of wealth
• tax efficient solutions
• flexible management and distribution of assets
• provision for spouse and dependants
• avoidance of inheritance law
• avoidance of exchange controls
• ownership of special purpose vehicles