Jersey Trusts formed by stanley davis

Jersey Trusts

(Fees quoted are exclusive of VAT)

The purpose of an Offshore Trust is typically to enable an individual to dispose of his or her interest in assets with a view to providing inheritance and estate planning and financial advantage. Jersey Trusts are governed by the Trusts (Jersey) Law 1984 and subsequent amendments.

These notes are primarily concerned with the Jersey Discretionary Trust. The basic concept of the Discretionary Trust is that the Settler transfers assets to the Trustees in whom the legal title and ownership of the assets is vested. The Trustees will then hold the assets transferred and will administer them on behalf of a predefined list of beneficiaries.

Requirements:

A Trust document is prepared which usually contains the following information:

a) The name of the trust.

b) The name of the Settler. This is the person who places the assets into the trust.

c) The names of the Beneficiaries or of the Class of Beneficiaries. Changes to this list can be made subsequent to the Trust’s creation.

d) A description of the Initial Assets settled by the Settler. It is possible to add to these at a later time either by the Settler or others.

e) A statement of the Trusts and responsibilities upon which the assets settled are held.      This is usually standardised.

f) A definition of the Trust period. This is embodied within our standard Trust deed.


· Jersey Trusts are not registered therefore there is no information available to the public.

· A Letter of Wishes must be prepared to direct the Trustees. At the outset of the Trust, the Trustees take from the Settler a letter known as a Letter of Wishes, which records the then current wishes of the Settler in relation to the day to day running of the Trust. Such a Letter of Wishes is an informal, private document between Settler and Trustee, which does not form part of the Trust deed. This serves to guide the Trustees and can be changed at any time by the Settler.

· Assets:
There are almost no restrictions on the assets which can be placed into a Jersey Trust and therefore this could comprise either share certificates, cash deposits or property anywhere in the world. A Jersey Trust cannot directly own real property located in Jersey, although it may do so through an underlying company.

· Jersey Trusts are completely free of Jersey Tax so long as no beneficiary is resident in the Island. However overseas tax legislation and precedents can be complex and can trap the unwary. Stanley Davis do not operate as specialist tax consultants either for the United Kingdom or internationally and all discussions are therefore our best understanding of the current position. Clients are advised that they may need to take specialist tax advice in their own jurisdiction and that this will be the clients’ sole responsibility.

Information required for registration:

  • Proposed name.

    •
  • Jersey due diligence questionnaire.

    •
  • Main objects.

Fees
Engrossment of Standard Trust Deed*
£1,500
Trustee Fees Approx
£1,500 p.a.
Total
£3,000
Annual costs thereafter include:
Trustee Fees Approx .
 £1,500 p.a
Termination of a Trust £500 minimum

 

* Engrossment - Additional costs will be charged if a Deed requires modification and alteration from the standard.

PLEASE NOTE WE REQUIRE ALL CLIENTS TO SATISFACTORILY COMPLETE OUR DUE DILIGENCE REQUIREMENTS AND COMPLY WITH THE MONEY LAUNDERING REGULATIONS 2007.