Jersey
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.
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