Investors who open a Jersey trust company have access to a favorable taxation regime, as well as straightforward regulatory requirements.
The trust company can be used for several purposes, however, a trust in Jersey is commonly set up for private wealth management purposes.
This private company is incorporated for the purpose of enacting a wealth management plan involving assets or property that will be transferred from one party to another.
Setting up a trust in Jersey is a process that can be easily handled with the help of our agents.
Our specialists in company formation in Jersey can assist interested parties during the process of creating a trust company.
Read below to find out more about the private trust company and how it is regulated in Jersey.
Guernsey is one of the Channel Islands and company formations in this jurisdiction are popular among investors who use them for various trading and asset management purposes. Investors who wish to incorporate in Guernsey, the Other Bailiwick that makes up the Channel Islands along with Jersey, can reach out to our agents specializing in Guernsey company formation.
In addition to trust company formation, our team is able to assist investors who wish to set up a company in Jersey that activates in another industry, such as the services sector, IT companies, financial companies, and more. We can give those interested a step by step guide of the process needed to open a company and will also help represent them if they cannot be present in Jersey during the incorporation.
Table of Contents
How are trusts registered in Jersey?
Investors who open a trust in Jersey that will be used as a private trust company register the entity with the Financial Services Commission and observe the requirements that apply to companies that carry our trust company business, as defined by the relevant articles of the Financial Services Law, with its subsequent amendments and additions.
| Quick Facts | |
|---|---|
| Jersey trust company uses | Asset protection, succession planning, forced heirship, division of assets prevention, spending control, etc.
|
| Governing law
|
Trusts (Jersey) Law 1984 (“Trusts Law”), with its subsequent amendments |
|
The settlor |
The party granting the management of the assets. He can also be a beneficiary, although not the sole beneficiary |
| The trustee |
The party entrusted with the management of the assets, acting in good faith and with due diligence, in the interest of the beneficiaries |
| The beneficiary | The parties that will benefit from the assets placed in the trust |
| The protector |
Appointed when the settlor wishes to control |
| Discretionary trusts in Jersey | The most commonly used form, allows the trustee the power to administer the assets on behalf of the beneficiaries
|
| Settlor reserved power trusts | The settlor reserves certain powers to himself under the trust deed, including the power to change the terms of the trust |
| Non-charitable purpose trusts | The trust can have non-charitable purposes and can be used for private wealth issues |
| Jersey trust company privacy | Created by a private document which does not need to be filed with a public body, nor made accessible to the general public (only the beneficiaries) |
| Trust taxation in Jersey | The trust is a tax neutral structure. Tax implications apply at the level of the settlor and the beneficiary |
| Trust termination | The trust in Jersey can be revocable or irrevocable. The latter is generally the preferred form |
| Trust period | Can be limited or unlimited. Its duration is stipulated in the incorporation documents. |
| Reasons to open a trust in Jersey |
Jersey has a developed and qualified professional trust sector, a modern trust legislation, and good financial services supervision |
| Asistance for Jersey trust company formation | Our Jersey company formation agents assist investors who wish to set up a trust for asset management and protection or commercial purposes |
Investors who establish a Jersey trust company for the purpose of acting as a trustee is incorporated as per the Companies Law and will observe the corporate governance framework, as well as the conditions under which it can provide trustee services.
The suitable trust type is determined according to the needs of the settlor. It should be noted that not all trusts in Jersey are set up in the form of a trust company. While our team can help those interested set up a Jersey trust company, we can also assist those who set up a discretionary trust or a revocable trust.
How are trusts regulated?
The Financial Services Law prescribes the principles that are to be followed by a trust company business. Moreover, the four schedules provide information on the following:
- First schedule: the categories and qualifications of trust company business employees (principal person and compliance officer, as well as others);
- Second schedule: the financial resources requirements in terms of the adjusted net liquid assets which need to be maintained at a minimum level of the expenditure requirement;
- Third schedule: variations from the applicable Code for those who provide only certain types of services; our team can give you details on the classes of activities;
- Fourth schedule: the manner in which consent is provided for those persons registered to conduct a single class of business for a trust company and are subject to the variances set forth in the Code.
What are the requirements for conducting the activity for those who set up a Jersey trust company?
A trust company business is subject not only to regulation but also to a set of principles in conducting its activities.
Some of the main requirements for those who open a Jersey trust company, in terms of how they conduct the activity, include:
- to conduct the business with integrity;
- to have the highest regard for the interest of the clients;
- to properly organize and control the affairs and have adequate risk management systems in place;
- to maintain transparency in the business operations;
- to be able to prove adequate financial resources and insurance.
Investors setting up a trust in Jersey that will be used to provide services for clients will also need to follow other principles.
Assets under management in Jersey
According to a Jersey Private Wealth Report for 2021/22, the net asset value under administration at the end of 2021 was £440.1 bn. Other data shows:
- there were 34,550 live companies on the register, at the end of the last quarter of 2021;
- the total value of the banking deposits held in Jersey was £131.4 bn;
- £30.8 bn was the total value of funds under management.
Contact us if you want to establish a Jersey trust company. Our team can assist you during the incorporation phase.
Are you thinking of setting up a different type of company? Jersey companies can be used for different purposes that include succession and estate planning, and also tax planning, investments, asset holding, or trading. Our team assists foreign investors who wish to open a company in Jersey throughout all of the pre- and post-incorporation phases. You can reach out to us for more information about the available business forms.
We can also help those interested open a bank account in Jersey.