The new Guernsey Trusts Law will come into effect from
Monday 17 March.
Some of the most significant changes to the Islands trust
The introduction of (non-charitable) Purpose Trusts
Removal of limits on the length of a trusts duration
allowing perpetual trusts
Clarification of the position of retiring trustees,
making the transfer process more streamlined
Clarification of the circumstances under which
information has to be given to beneficiaries
Abolishment of the liability of directors of corporate
trustees based in Guernsey or acting as trustees of Guernsey
law trusts, particularly as a way to encourage greater use of
Private Trust Companies (PTCs)
Revision of arrangements regarding limitation periods and
Alternative Dispute Resolution (ADR)
The Trusts (Guernsey) Law, 2007, was passed by the Islands
parliament, the States of Guernsey, last July and was given
Royal Assent by the Privy Council on Tuesday 12 February. It
was registered with Guernseys Royal Court on Monday 18 February
and commences operation on the 28th day after this
"Guernseys fiduciary practitioners are very much
looking forward to the enactment of the law. The changes it is
set to make to the Islands trust legislation are expected to
give us enhanced flexibility in providing solutions to meet the
ever-evolving needs of our international client base,"
said Gavin St Pier, Director of Barclays Wealth (Guernsey).
The new law has its roots in a series of proposals made in
the Evans Report. It was published following a root and branch
review of the Islands trust legislation by a working party
under the chairmanship of Guernsey advocate Rupert Evans.
"This is yet another example of how the Guernsey
government, the Islands financial regulator and its industry
practitioners, continually work together to maintain an
environment that maximises business flows," said Peter
Niven, Chief Executive of GuernseyFinance the promotional
agency for the Islands finance industry.
Guernsey has more than 50 years experience in providing
trust and corporate services. Today, the Island hosts more than
140 licensed fiduciaries, ranging from large organisations to
independent, boutique operations. Together, they hold between
£200 and £300bn worth of assets in trust.
Mr Niven added: "Guernseys fiduciary industry has built
a reputation for professionalism and expertise in using the
modern structures that are available on the Island for the
preservation of both institutional and individual/family wealth
and assets. The amendments to Guernseys trust legislation
include several significant changes like the introduction of
Purpose Trusts that will particularly enhance the Islands
"However, we are far from resting on our laurels and
work continues to introduce legislation that will allow the
establishment of Foundations. The addition of this innovative
tool will ensure that the Islands practitioners are able to
offer their internationally mobile clients the widest spectrum
of products and services."
A copy of the new law is available at www.guernseyfinance.com and is in the
publications section of the media centre.
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