Martin Sabey, President of the Jersey Association of Chartered and Certified Accountants and Graham Huelin are directors of Ernst & Young Trust Company (Jersey) Limited
The operation of trusts in Jersey is governed by the Trust (Jersey) Law, 1984, a relatively new and very flexible statute largely derived from and supported by a huge volume of historical case law precedent. Jersey has become a leading trust law jurisdiction with a number of pioneering trust judgements made in its courts.
Jersey trust arrangements are designed to meet fiscal, financial and estate planning requirements of the individual and his family and are also used in a wide range of corporate structures. A trust is not a product; it is not a sophisticated bank account; we tailor each trust to meet individual needs and circumstances. It involves expertise in implementing the advice of tax and legal professionals, often from a number of jurisdictions.
We regard trusts as generally more flexible arrangements then foundations and companies.
The creation of a trust involves the transfer of assets by way of gift to the trustee with no assets transferring back to the donor in return. It is this "giving up of control" over the assets which distinguishes the trust from a company where the investor may transfer assets to the company but receives shares in exchange.
Companies may be used in private wealth planning either alone or in conjunction with a trust, depending on circumstances. The decision to set up a company may be taken for commercial or fiscal reasons, but in some cases there is no advantage.
Swiss financial business in general is changing and there is growing recognition that they need to move on from the traditional business of managing money to develop the wider aspect of "cradle to grave" wealth management, including international and domestic tax planning.
Switzerland realises that Jersey can assist in bringing money back to the onshore market through planned and legitimate structures. Swiss courts and authorities give only very limited recognition to trusts, but as people, both Swiss and foreigners with existing trust structures, become more internationally mobile there will inevitably be pressure for legislation and best practice to deal with the issues arising.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information please contact:
Ernst & Young Trust Company (Jersey) Limited
PO Box 621
Le Gallais Chambers
54 Bath Street
Tel No: 01534 501000
Fax No: 01534 23265
E-Mail: Click Contact Link
URL: Click Contact Link
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