Jersey begins consultation on Trusts Law revision
20-Aug-2008Jersey's Economic Development Department issued, on 22 July 2008, a consultation paper on proposed amendments to the Trusts (Jersey) Law 1984. It is designed to ensure that Jersey's trusts law remains up to date and reflects recent international developments.
The consultation paper covers ten discrete areas of possible reform:
- Amendments to clarify the extent of the application of the law of Jersey to trusts. The proposed amendments are intended to ensure that decisions in relation to Jersey trusts are made in accordance with Jersey law (as opposed to foreign law).
- The possibility of removing the prohibition on trusts of Jersey immovable property.
- The possibility of clarifying what will constitute a valid purpose for non-charitable purpose trusts.
- The possibility of reform to the "Prudent man rule". It is proposed that it be made clear that trust property should be considered as a portfolio in relation to the trustees' duty to preserve and enhance its value.
- Trustees' remuneration and expenses. It is proposed that, since most Jersey trustees are now professionals, the law should provide for payment of a reasonable fee where the trust deed is silent.
- The rights of beneficiaries to information under a trust. It is proposed to clarify that these are subject to the terms of trust, provided that the principle of accountability is maintained.
- The position of an outgoing trustee. It is proposed that an outgoing trustee shall have a non-possessory lien over the trust property and also that deeds of indemnity for trustees should be enforceable by retired trustees even when they are not party to the deed.
- Various issues of limitation and prescription.
- Certain difficulties that may be faced by a trustee who acts in relation to several different trusts.
- The possibility of introducing a statutory definition of the word "charitable".
Senator Philip Ozouf, Minister for Economic Development, said: "The Trusts Law has been to a great extent the engine for the growth of our financial services industry in the last 20 years. Our law was the first in the market place and others have followed our lead. Subsequently, trusts laws in other places have evolved and in some cases moved ahead of our own product. This consultation is designed to see how we should develop our Trusts Law so as to hone our competitiveness."
Responses are invited by 19 September 2008.
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