учреждение траста в Джерси

One of the most popular places where international trusts are opened is the island of Jersey. Stable political and economic environment, excellent communications, infrastructure and developed legal system with a high degree of protection of beneficial owners attract foreign businessmen. All trustees operating in Jersey are required to have a license from the Island Financial Commission.

Trusts and a number of different types of operation with private clients, as well as trading on the stock exchanges of international markets and the British Channel Islands, have been developing in Jersey for a long time.

The definition of the Jersey Trust covers a trust, which was established and all its activities are regulated in accordance with the legislation of Jersey. The trust manager is desirable to be a resident of the island of Jersey, and in the case where the trustee is a resident of another country, the income of the trust and the capital can be taxed according to the laws of that country. In Jersey, there are no fees and state duties payable when establishing the trust and for the entire period of its activities.

Advantages of Trust Laws in Jersey

According to a special provision of Jersey law, the transfer of property is possible by the means that contradicts the "law of mandatory inheritance". In countries where this law is introduced, close family members of the deceased founder of the trust are deemed to be his dependents who have rights to a certain part of the inheritance. If the founder entrusts his assets in Jersey during his lifetime, then according to the Jersey laws, assets after his death will not pass to lawful heirs or other persons, that is presupposed by the law on mandatory inheritance, but to those whom the founder of the trust determined during his lifetime.

In accordance with Article No. 9 of the Jersey Trusts Act , the island's court only considers all issues relating to the trusts or the transfer of assets to the use of the trust under the Jersey legislation. The trust laws of other countries have no legal force there and are ignored when conducting court proceedings.

Rights of trust founders

Jersey law provides founders with the following rights:

- the founder has the right to limit any powers or actions of the trustee. The manager must coordinate his actions on the functioning of the trust with the founder or a person appointed in the declaration of trust;

- the founder may revoke, modify or make specific amendments to the conditions of the trust, and

- decide on payment in advance;

- determine income and trust capital, assign payments on them;

- appoint, at own discretion, beneficial owners, advisers, protectors, controllers, investment managers, trust managers or dismiss them;

- change the applicable trust law.

Types of Trusts in Jersey

The trusts existing on the island of Jersey are divided into:

- accumulative,

- fixed,

- discretionary,

- special/purpose trusts and trusts with reserved powers.

The founders of accumulative trust create it to retain and provide funds for children or grandchildren (other generations). This type of trust requires the manager to accumulate trust income for future generations. However, if the beneficial owners have a need for funds to pay for treatment or education, a trustee can use the income for this purpose. In Jersey, accumulative trusts can exist for 100 years, after which the accumulation stops and the trust property returns to the descendants of the founder.

The rights of a fixed trust serve as a source for a particular beneficial owner and can not be determined from its conditions. This beneficial owner has a fixed right to income or trust capital. Usually the beneficial owner's right is fixed by time and amount, i.e. he can be credited with a percentage of the income of the assets of the trust only after reaching a certain age or creating his own family, etc.

The discretionary trust differs from the fixed one in that its manager can independently decide on what proportion of the trust's income will be paid to the beneficial owner. Discretionary trust’s managers have more opportunities to respond to additional unforeseen circumstances.

Trusts of this type of trust for the allocation of trust capital and income must receive  a written instruction for such activities from the founder. In the future, this letter can be supplemented, modified or annulled. It is not necessary for the trustee to accept and apply the instructions of the letter.

Establishment of special/purpose trusts is aimed at ensuring other interests of beneficial owners. And, if before the appearance of this type of trusts in Jersey, only those trusts were recognized that defended the interests of beneficial owners or were created for charitable purposes, now the possibilities of trusts have become unlimited. Trusts of various orientations began to develop in Jersey, namely: from private family to trusts engaged in international financial activities.

The main and only limiting factor is that the goal can not be indistinct, illegal, immoral or harmful to society. To fulfill the conditions of the trust, it must have a designated controller.

Trusts with reserved powers grant certain rights with regard to the trust to a third party. Often, the third party is the founder of the trust. These rights extend from the method of investing the assets of the trust to the circumstances of obtaining benefits. Such trusts are very flexible in management, which additionally attracts the founders.

Taxation in Jersey

In Jersey, there is only one form of taxation, and it is income tax. There are no taxes on inheritance, wealth, gift or capital gains. Also, the managers of Jersey-based trusts do not pay tax on trust assets if its beneficial owner are not residents of Jersey.

The assets transferred to the trusts of the island can be accumulated and increased within the framework of the trust without paying taxes. But you must understand that the tax obligations of their countries can be extended to the founder of the trust and its beneficial owners.

Jersey Private Trust Company

The goal of a private company in Jersey, as elsewhere, is to protect and represent the interests of trusts or groups of trusts of one family. Such companies are very attractive to the founder of the trust, if there is a need to involve one of the family members in the management of the trust. The company can not provide its services to anyone other than one particular family.

In Jersey, there is no need to register private trust companies, but there is still supervision of their activities. Control over private trust companies operating under the Decree on the Exemption of Trust Companies of 2000 is maintained by the Jersey Financial Commission.

Features of a private trust company in Jersey

A private company in Jersey has a number of features, such as:

- A family of both charitable and special/purpose trust/fund can own parts of such a company.

- Control over the board of directors retains within the family (this allows to get confidence that the assets of the trust will be disposed of at the request or upon the desire of the family).

- The board of directors can involve specialists in certain areas, or it is possible to change the board at all, without interrupting the work of the company.

- Registration terms (four days) are very attractive, but if you need it you can register for one day.

Regulation of activities of private companies

In fact, there is no regulation of the activities of private trust companies in Jersey, but the company can be exempted from licensing on the following terms:

- The company represents the interests of specific trusts of one family.

- The company does not provide and does not advertise its services to third parties.

- The name of the company is known to the Jersey Financial Commission.

- The company is administered by the service provider of the island of Jersey.

Taxation in Jersey

It is impossible not to mention the tax benefits of the island:

- The income tax at the standard tax rate in Jersey is 0%.

- Stamp duty for the transfer of shares is not paid, subject to keeping the register of shares outside the UK.

- The source is exempt from the tax on dividends.

- The capital gain is not taxed.

- The value added tax of Great Britain does not apply in Jersey.

Law&Trust International will help with the establishment of the trust in Jersey. Contact our lawyers to save your time and money. For additional questions, you can also contact us. Consultation is possible by phone, in chat and also in person at the office of the company.