Tuesday, October 29, 2013
The latest amendment to Jersey's trust legislation came into force on October 25, strengthening the territory's legislative framework and providing greater clarity for the courts, practitioners and those who work with or benefit through Jersey trusts.
The effect of Trusts (Amendment No. 6) (Jersey) Law 2013 is to confirm the Royal Court's ability to provide discretionary relief in a number of trust scenarios, e.g. where a settlor has made an error in settling assets into trust, or where a trustee has erred in exercising a power, perhaps failing to take into account matters which should have been considered, or acting on incorrect professional advice.
Geoff Cook, CEO, Jersey Finance, commented: "Since its enactment in 1984, the Trusts (Jersey) Law has proved to be a highly effective and hugely influential piece of legislation. This latest amendment, only the sixth in nearly 30 years, provides welcome clarity for the Royal Court and for the many settlors, trustees and beneficiaries, all over the world, who enjoy the benefits of having Jersey law as the governing law of their trusts. The ability for the Royal Court to give discretionary relief when a beneficiary finds itself materially prejudiced by a trustee's decision – made, perhaps, in good faith but unfortunately founded upon erroneous advice – provides a welcome alternative to the uncertainties and costs which surround 'classic negligence litigation'.
"With an estimated GBP400bn (USD647bn) of trust assets under administration in Jersey, this amendment can only serve to further bolster Jersey's already highly regarded international private wealth offering."