Jersey's principal trust legislation

The Trusts (Jersey) Law 1984 sets out provisions concerning trusts and trustees, as well as people with interests under trusts. The Law has its own structure and principal subject areas, and its consolidated text is published at an official location.

The principal statute

The Trusts (Jersey) Law 1984 is the principal statute for Jersey trusts. It is a law concerning trusts and trustees, people interested under trusts, and related purposes. As a Law, it falls within the category of legislation the States Assembly can pass on any matter except international relations. An adopted Law takes effect after approval in the UK by the monarch and registration in Jersey's Royal Court, subject to an exception for taxation laws.^[1]^[2]

The Law's own interpretation provision says it is not to be read as a codification of the law concerning trusts and trustees, including interested persons. That sentence helps define the statute's stated role: it provides rules on specified subjects without declaring itself a complete code. The statute's title and introductory purpose are therefore a useful starting point, while its parts and articles show the topics covered.^[1]

How the Law is organized

The Law has five parts, followed by endnotes and tables recording legislation history, renumbered provisions and endnote references. Its contents page groups articles by subject and distinguishes provisions for Jersey trusts, foreign trusts and provisions of general application. Article numbering runs from 1 through 61, with inserted lettered articles such as 9A and 47A to 47J.^[1]

Part 1, general, contains articles 1 to 5 on interpretation, the existence and recognition of a trust, its proper law, and court jurisdiction.^[1]
Part 2 applies only to a Jersey trust and covers formation and administration subjects, including beneficiaries, trustees, their duties and powers, and trust duration.^[1]
Part 3 applies to a foreign trust, while Part 4 contains provisions of general application to Jersey trusts and, where context permits, foreign trusts.^[1]
Part 5 is supplemental. It addresses the Law's application, saving provisions, court rules and citation.^[1]

Headings within Part 2 divide the material into practical clusters. These include creation, validity or duration; appointment and retirement or discharge of trustees; trustee duties and general powers; and failure, lapse or termination. Later headings cover court powers and other matters. The contents therefore serve as a subject guide, while the operative provisions appear under numbered articles.^[1]

Defined terms appear at the beginning in Article 1. The definitions include beneficiary, foreign trust, Jersey trust, settlor, trust property and terms of a trust. For example, the Law defines a Jersey trust by reference to its proper law, and a foreign trust by reference to the law of another jurisdiction. It defines property broadly as property of any description wherever situated, including rights and interests at different stages.^[1]

Subjects addressed by the provisions

Part 1 addresses the existence and recognition of trusts, the proper law of a trust and court jurisdiction. Article 2 describes when a trust exists by reference to a trustee holding or having property vested for a beneficiary, a purpose, or both. The opening part thus supplies concepts and rules that precede the provisions directed specifically to Jersey trusts.^[1]

For Jersey trusts, Part 2 covers creation, property that may be placed in trust, validity and duration. It also addresses beneficiaries, enforcers, trustee appointment and removal, duties and powers, trustee remuneration and expenses, and disclosure. Other subject headings concern variation, accumulation or advancement, appointment powers, and revocation or change of proper law. The contents also identify provisions about termination and court powers.^[1]

Part 3 has two articles. It states its scope as foreign trusts and addresses their enforceability. Part 4 applies to Jersey trusts and, to the extent the context admits, foreign trusts. Its contents include applications to the court, execution of instruments by court order, costs, dealings with trustees and limitation of actions or prescription.^[1]

Part 5 includes rules on the Law's application to trusts created before or after its commencement, court rules and the statute's citation. These provisions place the substantive parts within a framework for applying and referring to the Law.^[1]

Jersey's trust legislation covers Jersey law only. U.S. tax treatment and U.S. reporting requirements are separate questions governed by U.S. law.^[1]

Finding the official consolidated text

The official consolidated version is published by the Jersey Legal Information Board, or JLIB. The official consolidated version is compiled and issued under the authority of the Legislation (Jersey) Law. Most Jersey legislation can be found on JLIB, where current laws are the collection for legislation in force.^[1]^[2]

On JLIB, the Law appears under Current Laws with the title Trusts (Jersey) Law 1984. The current legislation collection is updated when legislation is amended or when legislation comes into force. A reader looking for the consolidated text can therefore locate the title in JLIB's current laws collection and use the document's version controls to inspect available versions.^[1]^[2]

Questions and answers

What is Jersey's principal trust statute?

Jersey's principal trust statute is the Trusts (Jersey) Law 1984. It deals with trusts and trustees, along with people who have an interest under a trust.^[1]

How many parts does the Law contain?

The Law is organized into five parts. The parts address general provisions, Jersey trusts, foreign trusts, general application and supplemental matters.^[1]

Where does the official consolidated text appear?

The official consolidated text is on the Jersey Legal Information Board website. The text is compiled and issued under the authority of the Legislation (Jersey) Law.^[1]^[2]

What does Part 2 cover?

Part 2 applies only to a Jersey trust. Its topics include trust creation and validity, trustee appointments, their duties and powers, and duration.^[1]

Does the Law define Jersey and foreign trusts?

Yes. Article 1 defines a Jersey trust by its proper law being Jersey law and a foreign trust by its proper law being another jurisdiction's law.^[1]

Does the statute describe itself as a complete code?

No. Article 1 says the Law is not to be construed as a codification of laws regarding trusts, trustees and interested persons.^[1]

Related glossary terms

Enforcer: An enforcer is a person given a role in relation to certain trusts. Jersey and Cayman law describe how enforcers are appointed, with their duties and rights.
Corporate trustee: A corporate trustee is a corporation under Jersey law. The law explains how it acts for a trust and relates to an individual trustee or trust corporation.