Jersey Courts and Trust Legal System

Court powers concerning trusts

The Trusts (Jersey) Law 1984 provides for court orders concerning the execution or administration of a trust and the exercise of a trustee's powers, discretions or duties.^[1]

The court's powers include orders concerning the appointment or removal of a trustee, trustee remuneration, the submission of accounts and trustee conduct.^[1]

The court's powers also cover matters concerning beneficiaries, connected persons and enforcers, and the court may declare a trust valid or enforceable.^[1]

Trusts and their proper law

Under the Trusts (Jersey) Law 1984, a trust exists where a trustee holds property without owning it in the trustee's own right, for beneficiaries or for a purpose beyond the trustee's own benefit.^[1]

Subject to Article 41, the proper law of a trust is determined first by the law expressed in its terms, then by the law implied from those terms, and otherwise by the jurisdiction with which the trust had its closest connection when created.^[1]

Trust terms may provide for the proper law to change from Jersey law to the law of another jurisdiction.^[1]

Subjects addressed by the legislation

The Trusts (Jersey) Law 1984 addresses questions concerning a trust's validity or interpretation, the validity or effect of transfers of property to a trust, and a settlor's capacity.^[1]

It also addresses trust administration, whether conducted in Jersey or elsewhere, including questions concerning trustees' powers, obligations, liabilities, rights, appointment and removal.^[1]

Independent court powers

The Law preserves court powers that exist independently of it, including powers to set aside or reduce transfers or other dispositions of property and to vary trusts.^[1]

The same provision preserves independent powers to reduce or vary testamentary or other dispositions and to make orders relating to matrimonial proceedings.^[1]

In more detail

Subject to Article 41, the proper law is the law expressed in the trust terms, failing that the law implied by those terms, and failing either the law of the jurisdiction with the closest connection when the trust was created; an expressed or implied law also fails if it does not provide for trusts or the category of trusts concerned.^[1]

Related reading

For Jersey trust arrangements and roles, see Trusts and statutory regimes under Jersey law, which describes trust arrangements recognized in Jersey law. For the statute's structure and source, see Jersey's principal trust legislation. For trustee regulation, taxation and reporting, see Jersey trusts for U.S. citizens. The separate reporting page, Jersey information exchange and U.S. trust reporting, covers information exchange and U.S. trust reporting.

Related resources

Related glossary terms

• Proper law of a trust: The Jersey Trusts Law defines proper law as the jurisdiction's law expressed or implied in trust terms, or most closely connected to the trust when created.
• Foreign grantor trust: A foreign grantor trust is a foreign trust treated as owned by a grantor, often a U.S. person. Ownership brings Form 3520 and Form 3520-A reporting duties.
• Section 679: Section 679 addresses certain transfers by U.S. persons to foreign trusts. It treats some property transfers as ownership when the trust has a U.S. beneficiary.

Related articles and guides

• Guernsey Trust Legislation: Guernsey's principal trust statute and selected rules on powers and trustees, protectors, trust duration and purpose trusts, for U.S. citizen readers.
• Cook Islands courts and legal system: A guide for U.S. citizens to the Cook Islands court structure, court administration, appeal path, legal tradition and official sources for legislation.
• Cyprus courts and legal system structure: A structural guide for U.S. citizens to Cyprus courts, appeal levels, legal traditions and the publication of legislation, based on official descriptions.

Related pages

• Jersey: overview: Start page for this jurisdiction.
• Trustee regulation and licensing
• Reporting and information exchange
• Taxation of trusts
• Trust legislation
• Types of trusts