Offshore

Jersey's Amended Trust Law Comes Into Force

Tom Burroughes Group Editor London 28 October 2013

Jersey's Amended Trust Law Comes Into Force

A new amendment to the island of Jersey’s
trust legislation has come into force, which the jurisdiction says is designed
to give courts, lawyers and clients a clearer position in the use of such
structures.

The amendment incorporates into the Trusts (Jersey) Law 1984 the existing
law on mistake and the so called “rule in Hastings-Bass’”,
the latter being a legal first within the international trust’s arena,
according to a statement from Jersey Finance, the promotional agency for the
island’s financial sector.

“The
effect of the amendment is to confirm the Royal Court’s ability to provide
discretionary relief in a number of trust scenarios, eg 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,” the
statement said.

“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,” Geoff Cook, chief executive, Jersey Finance, said.

“With
an estimated £0.4 trillion (around $0.65 trillion) of trust assets under administration in Jersey, this
amendment can only serve to further bolster Jersey’s
already highly regarded international private wealth offering,” he added.

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