Jersey *
Trust
Jersey, a self-governing British Crown Dependency located in the Channel Islands, has long maintained a reputation as a leading jurisdiction for the establishment and administration of offshore trusts. Its trust law is based on English common law principles but has evolved through distinct statutory development, most notably through the Trusts (Jersey) Law 1984, which is the principal legal framework governing trusts in the island. This legislation is supported by an established judiciary and a specialist fiduciary services sector, making Jersey a stable and predictable environment for private wealth structures.
Jersey trusts are used for a variety of legitimate purposes, including succession planning, asset protection, family governance, charitable objectives, and commercial arrangements. In addition to traditional trust arrangements, the jurisdiction also accommodates Private Trust Companies (PTCs), which allow for a more customised approach to trust management, particularly in family office contexts.
The Trusts (Jersey) Law 1984 codifies many aspects of trust law in Jersey, while still relying on established equitable principles. The law is designed to offer flexibility and certainty for settlors, trustees, and beneficiaries alike. Notably, Jersey trust law allows for:
• Discretionary trusts, where trustees have broad powers over distributions;
• Fixed interest trusts, where beneficiaries have defined entitlements;
• Purpose trusts, which can be established for non-charitable purposes without beneficiaries, subject to the appointment of an enforcer;
• Charitable trusts, for philanthropic or public benefit objectives.
Trusts may be revocable or irrevocable, and the duration of a trust is not limited unless specified in the trust deed. Unlike many jurisdictions, Jersey has abolished the rule against perpetuities, allowing for perpetual trusts if desired.
The validity of a Jersey trust is governed by Jersey law, even where the settlor, beneficiaries, or trust property are located elsewhere. This principle is supported by statutory “firewall” provisions that protect Jersey trusts from challenges based on foreign laws, such as forced heirship claims.
As in other common law jurisdictions, a Jersey trust involves several core participants:
Settlor: The person who establishes the trust and transfers assets into it. The settlor may also retain limited powers, though excessive control can undermine the trust’s validity in certain legal contexts.
Trustee: A fiduciary responsible for holding and managing trust assets in accordance with the trust deed and Jersey law. Trustees must act prudently, in good faith, and in the interests of the beneficiaries or the trust’s stated purpose.
Beneficiaries: Individuals or entities with rights to benefit from the trust. In discretionary trusts, beneficiaries have no fixed entitlement but may benefit at the trustee’s discretion.
Protector: Often appointed to provide oversight, particularly in discretionary trusts. The protector may hold powers such as vetoing trustee decisions or removing and appointing trustees.
Enforcer: Required for non-charitable purpose trusts. The enforcer’s role is to ensure that trustees comply with the trust’s purpose.
A trustee of a Jersey trust may be a licensed trust company regulated by the Jersey Financial Services Commission or a Private Trust Company.
A Private Trust Company is a company established for the sole purpose of acting as trustee of one or more trusts, typically for a single family or private group. This structure offers an alternative to appointing a professional trust company and allows for greater control over trust management.
PTCs are not automatically regulated in Jersey, provided they do not offer trustee services to the public. However, they must be administered by a Jersey-regulated trust company licensed by the Jersey Financial Services Commission (JFSC) under the Financial Services (Jersey) Law 1998. The regulated service provider is responsible for ensuring that the PTC complies with anti-money laundering and other regulatory obligations.
PTCs are commonly used in complex, multi-generational estate planning or where families have significant global assets requiring bespoke management.
Jersey trusts are tax-neutral in most cases. The trust itself is not subject to Jersey income tax unless it has Jersey-source income, such as local property rental income or profits from a Jersey trade.
Non-resident beneficiaries are generally not subject to Jersey taxation on distributions from a Jersey trust. However, the tax treatment in their home jurisdictions must be carefully considered.
Jersey trusts offer effective asset protection features, subject to limitations. Transfers of assets to a trust can be challenged under Jersey law if they are found to be fraudulent transactions designed to defeat creditors. However, the burden of proof is high, and Jersey law provides safeguards for trusts established in good faith.
The jurisdiction’s firewall provisions prevent foreign judgments or laws from affecting the validity of a Jersey trust, including those arising from forced heirship, marital property regimes, or other non-Jersey inheritance rules. This legal protection is particularly relevant in cross-border estate planning.
Jersey offshore trusts remain a core feature of the island’s financial services landscape, offering a robust, flexible legal framework suited to a wide range of private, charitable, and commercial applications. The jurisdiction’s established legal system, professional infrastructure, and alignment with international standards on transparency and regulation provide a solid foundation for the use of trusts in global wealth structuring. Private Trust Companies further enhance the jurisdiction’s offering by enabling greater client involvement in trust governance, while maintaining regulatory oversight through licensed administrators.
As the international trust environment continues to evolve under increasing scrutiny, Jersey remains committed to balancing client confidentiality, robust regulation, and global compliance obligations, reinforcing its role as a credible and competent trust jurisdiction.
Legal *
Country code – JE
Legal basis – Mixed (Customary, French civil and Common)
Legal framework – The Trusts (Jersey) Law 1984 (As amended)
Formal name – Trust
Settlor – The settlor is the person who establishes and whose assets are put into the trust. The settlor may also be the spendthrift beneficiary of those assets and may reserve power to revoke, vary or amend the terms of the trust, make distributions and/or remove a Trustee. There may not be protection from a subsequent bankruptcy after assets are gifted to the trust
Trustee – Trustees are natural or legal persons who hold the title to the assets and manage the trust, but they cannot benefit from it.
The Trustee may be an individual (or individuals) or a body corporate, who must perform certain obligations set out in the Law and trust document.
Custodian trustees are not permitted.
Beneficiaries – Beneficiaries are those who get benefit from the trust. Beneficiaries may be individuals or corporate bodies.
There are specific provisions to prevent beneficiaries from draining the trust of its assets and spending in a thrifty way. Trusts in Jersey allows avoiding both probate and forced heirship rules.
Protector – The settlor may appoint a Protector with certain powers in relation to the trust, including the power to appoint and remove Trustees, the power to add or remove Beneficiaries and the power to terminate the trust. Appointment of a protector is not mandatory.
Trust deed – The document that sets out the terms upon which the trustee shall manage the trust.
Disclosure - The trust instrument does not have to be filed with any public body in Jersey.
Protection from foreign judgements – The Trusts Law does not provide provisions to ignore and not enforce judgments. The Hague Convention on Trusts does not apply in Jersey.
Protection from creditors – The Trusts law does not repeal the Statute of Elizabeth, so transfers by the settlor to the trust may be set aside if the settlor transferred the property before the debt arose. The creditor must prove the fraudulent transfer of assets to the trust, which is clearly defined by the law. Creditors’ claims may be brought jointly. If a fraudulent transfer is proven, the trust may be declared invalid.
Protection for immigrant trusts – Trusts that migrate from other jurisdictions do not benefit from retroactive protection.
Community property – Community properties transferred to a Jersey trust may not retain its community property character.
Exclusion of foreign law - There are no exclusions in the legislation to be able to exclude foreign law.
Choice of law – The choice of law of Jersey to govern the trust or a particular aspect of that trust, is valid, effective and conclusive regardless of any other circumstances.
Duration - A Jersey trust can be of unlimited duration.
Compliance – There is no requirement for trusts in Jersey to be registered. A trustee shall keep accurate accounts and records of the trustee’s trusteeship.
There are no reporting requirements for a trust in Jersey, provided that all beneficiaries are resident outside Jersey.
- Settlor as a beneficiary *
- Bankruptcy protection * *
- Ignore foreign judgements * *
- Hague convention on trusts * *
- Choice of law is binding * *
- Protection from immigrant trusts * *
- Community property provisions * *
- Custodian trustee permitted * *
- Rule against perpetuities (years) * *
- No Specific exclusion of foreign law *
- Yes Settlor can retain control *
Protection of Settlor *
Protection from foreign judgements *
- Avoidance of forced heirship * *
- Spendthrift provisions * *
- Exclusion of Statute of Elizabeth laws * *
- Trust invalid if transfer fraudulent *
- Creditor must prove fraudulent transfer * *
- Clear definition of fraudulent transfers * *
- Separation of creditor claims * *
- Statutory limitation on fraudulent transfer * *
Protection of Beneficiary *
Transfers *
Taxes *
A trust established in Jersey may not be subject to local taxes applicable to the assets and income of the trust, provided that no residents of Nevis benefit from the trust and no physical assets are located there.
It must be noted that the choice of law of the trust would not be applicable to tax matters, which would be governed by the respective jurisdiction where the settlor, beneficiaries, assets or trustee are located, as applicable.
You should consult with your tax advisor or accountant to know the tax implications in your jurisdiction of residence when establishing a trust in Jersey, transfer assets to it and receive profits from said assets.
- Offshore Income Tax Exemption * *
- Offshore capital gains tax exemption * *
- Offshore dividends tax exemption * *
- CFC Rules * *
- Thin Capitalisation Rules * *
- Patent Box * *
- Tax Incentives & Credits * *
- Property Tax * *
- Wealth tax * *
- Estate inheritance tax * *
- Transfer tax * *
- Capital duties * *
- - Offshore Income Tax Rate *
- - Corporate Tax Rate *
- 0% Capital Gains Tax Rate *
- 0% Dividends Received *
- 0% Dividends Withholding Tax Rate *
- 0% Interests Withholding Tax Rate *
- 0% Royalties Withholding Tax Rate *
- 0 Losses carryback (years) *
- Indefinitely Losses carryforward (years) *
- 6.00% Social Security Employee *
- 6.50% Social Security Employer *
- 20% Personal Income Tax Rate *
- 5% VAT Rate *
- 0 Tax Treaties *
Country details *
The Bailiwick of Jersey is a British Crown Dependency located in the English Channel, to the west of the coasts of Normandy, France. The territory comprises the island of Jersey (which constitutes the greater part) and a series of uninhabited archipelagos such as Les Minquiers, Les Écréhous, and Les Pierres de Lecq among others. Jersey is part of the archipelago of the Channel Islands, which also includes the Bailiwick of Guernsey.
Although the island is not part of the United Kingdom, neither the European Union nor the European Economic Area, its international representation, defense, and good governance is the responsibility of the Government of the United Kingdom.
It has a population of approximately 100,000 people and the capital is Saint Helier.
The native population has as its mother tongue a Norman subdialect of French. But today English is the most widely spoken language.
The head of government is an elected administrator called Bailiff, and the head of state is the lieutenant governor, who is appointed by the king or the queen of England.
In accordance with Protocol 3 of the UK's Accession Act (1972), it belongs to the European Union Customs Union, thereby benefiting from the free movement of industrial and agricultural goods.
As a member of the Common Travel Area (CTA), the free movement of citizens of the European Economic Area is also permitted.
Jersey issues its own notes and coins, the Jersey Pound (JEP), which circulate along the pound sterling and have the same value.
Jersey has one of the highest GDP per capita in the world.
Like Guernsey, the island of Jersey is based on financial services, tourism & hospitality, retail and wholesale, construction and agriculture. Financial services contribute about sixty percent of the island's economy, and the island is recognized as one of the main offshore financial centers.
The main agricultural products are potatoes and dairy products. Jersey's milk source is a small breed of cow that has also been recognized (though not generically) for the quality of its meat. On a small scale, the production of organic meat has been reintroduced in an effort to diversify the industry.