Following approval by the Privy Council, the Foundations
(Jersey) Law 2009 was registered by the Royal Court of Jersey
today, Friday 19 June and will come into force on Friday 17
Unlike trusts, foundations are separate legal entities. Validity
depends solely on the Certificate of Registration, so there is
greater certainty than with trusts. Foundations are managed by a
Foundation Council, like the board of directors of a company. Like
a company, foundations can be redomiciled allowing existing
foundations in Panama and Liechtenstein to redomicile to
Unless expressly included, no duties are owed to beneficiaries
because the Foundation Council owes its duties to the foundation,
so the beneficiaries cannot terminate it against the wishes of the
Founder as they can with a trust. For the same reason disclosure
can be restricted so that, for example, a Founder can provide that
his children are not made aware of the foundation until they have
reached an age by which they will have had to make their own way in
Foundations cannot trade, but otherwise they can do anything
lawful, including owning trading companies, so the extent of their
application will be limited only by the ingenuity of those
establishing them. They are a very welcome addition to the toolbox
of wealth planning vehicles which Jersey has to offer, and despite
the bad press from misuse of similar vehicles in other
jurisdictions, clients and their advisers can have complete
confidence in Jersey foundations because of the stringent
regulatory regime, as confirmed by Jersey's G20 white list
status. Indeed Jersey will be the only G20 white list jurisdiction
able to offer foundations.
Crill Canavan's Trusts and Foundations Team
With a specialist team of experienced lawyers, Crill
Canavan's Trusts and Foundations Team provides efficient and
practical commercial non-contentious advice in relation to the
following areas of expertise:
Trusts and Foundations: all aspects of trusts
and foundations for both individuals and organisations.
Sharia-compliant: trust and foundation
Retirement Annuity Trusts (RATS): established
and approval of scheme.
Employment Benefit Trusts: pensions schemes,
death in service schemes, employee and executive share and share
Charitable and Purpose Trusts: establishing
philanthropy and other purposes.
Private Trust Companies: for wealthy families
wishing to utilise an alternative to a trust.
Managed Trust Companies: for relationships
with existing trust service providers.
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.
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