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Guernsey trust: how it works
A Guernsey trust is a trust under the law of Guernsey, one of the Channel Islands, where a trustee holds assets under a deed for named beneficiaries or a stated purpose. Families with assets in several countries use it for long-term planning. Where work is done in Guernsey, a local partner joins us. Ask for a quote.
Reviewed by a senior trust administrator, updated
Key facts
- Governing law
- The Trusts (Guernsey) Law, 2007 is the main statute for Guernsey trusts[1]
- Perpetuity period
- No set limit on how long a Guernsey trust lasts, subject to its terms (s. 16)[4]
- Reserved settlor powers
- Reserving powers, such as to revoke or vary, does not void the trust (s. 15)[4]
- Reporting to authorities
- Guernsey takes part in automatic exchange of tax information under the CRS[3]
Numbers in brackets point to the Sources list at the end of this page.
Swipe sideways to see the whole diagram.
- SettlorSets up the structure and transfers assets into it
- transfers assets under a trust deedTrusteeHolds the assets and manages them under the trust deed
- holds and distributesBeneficiariesPeople who benefit from the trust under its terms
- Trustee holds legal titleTrust assetsThe property held in the structure
Roles and notes
| Part of the structure | What it does |
|---|---|
| Settlor | Sets up the structure and transfers assets into it |
| Trustee | Holds the assets and manages them under the trust deed |
| Beneficiaries | People who benefit from the trust under its terms |
| Trust assets | The property held in the structure |
- The settlor transfers assets to a trustee under a written trust deed governed by Guernsey law.
- We work with a local partner where the work is done in Guernsey; your engagement letter sets out its role.
- A letter of wishes guides the trustee's discretion; it does not bind the trustee.
- A Guernsey law firm drafts the deed, and you review it with your own lawyer.
- A private trust company can act as trustee for one family, subject to Guernsey counsel's advice.
What a Guernsey trust is
A trust is a legal relationship recorded in a deed, and it is not a company. As settlor, you transfer assets to a trustee. The trustee becomes their legal owner yet manages them under the deed, for the beneficiaries or for a stated purpose.
The main statute is the Trusts (Guernsey) Law, 2007 (source: Guernsey Legal Resources, Trusts (Guernsey) Law, 2007).
Sources and review dates are listed below.
A discretionary trust is the usual choice. The trustee decides who receives what and when, guided by a letter of wishes that you write and may revise. As the letter does not bind the trustee, it can respond as circumstances change.
Nor is a trust a way of hiding assets. The trustee, the banks and tax authorities all need to know who stands behind it.
Continuity is what a trust does offer. When the settlor steps back, falls ill or dies, a professional trustee keeps following the deed.
The facts carry their source and date; your lawyer confirms how each applies to your deed. They are set out on the law and features page.
Who uses Guernsey trusts
Families who come to us have assets or companies spread over more than one country and want a lasting structure under a Channel Islands law.
- Non-resident families whose holdings span several countries.
- Business owners who want a trust for employees, run by a professional trustee.
- Family offices that want decisions kept in house through a private trust company.
- Families weighing Guernsey against Jersey or the Isle of Man.
Living abroad does not prevent you from starting. If we cannot meet in person, we add a safeguard to confirm who you are, such as a second set of identity documents or a first payment from an account in your own name.
Families ask most often about these structures:
- Discretionary trust. The trustee decides distributions within a class of beneficiaries, guided by your letter of wishes.
- Reserved powers trust. The settlor keeps certain powers, such as directing investments. How far that works depends on the deed and on Guernsey counsel’s advice.
- Purpose trust. The trust serves a stated purpose rather than named people. Guernsey counsel advises on the roles it needs, including an enforcer of the purpose.
- Foundation. A separate legal entity that civil law families find familiar. The Foundations (Guernsey) Law 2012 provides for foundations (source: States of Guernsey, Foundations Law media release).
- Private trust company. A company that acts as trustee for one family. Your lawyer confirms how one is set up and run before it is formed.
A Guernsey corporate trust structure can combine these pieces, for example a purpose trust that owns a private trust company, which then acts as trustee of the family trusts. Counsel designs it before any deed is drafted.
Trusts that already exist are welcome. Our trust administration service shows what administration covers once we are appointed. A change of trustee follows the trust’s own governing law.
What the trustee does
A trustee has three basic duties: follow the deed, act in the beneficiaries’ interests and keep proper records.
In day-to-day terms, the trustee’s work consists of the following:
- holding title to the assets and keeping them separate from its own;
- trustee meetings with minutes for each distribution or major decision;
- accounts and an asset report that we send you;
- a periodic refresh of identity checks on the people connected to the trust;
- collecting the self-certification forms used for tax information exchange.
Work carried out in Guernsey involves a local partner, and your engagement letter sets out its role.
Some choices stay with you: who the beneficiaries are, what the letter of wishes says, and whether you decide how assets are invested or appoint a professional manager to decide.
Reporting is part of the job. Guernsey takes part in automatic exchange of tax information under the CRS (source: States of Guernsey, Common reporting standard (CRS)).
The tax and reporting guide explains what that means and what to ask your adviser.
Documents and timeline
The trustee asks for identity documents, evidence of the source of your money and wealth, and the details needed for the trust documents. Everyone able to direct the trust is checked, and the settlor is not the only one.
| What we ask for | Who it concerns | Why |
|---|---|---|
| Passport and proof of address | Settlor, protector, anyone who can direct the trust | Identity and address checks |
| Occupation and evidence of source of funds and wealth | Settlor | To show where the assets came from |
| Names and details of beneficiaries | Beneficiaries | Identification; for a class, enough detail to identify them at payout |
| Incorporation papers and share register | Any company placed in the trust | To confirm ownership and control |
The table is our onboarding checklist.
A Guernsey law firm drafts the deed, and your letter of wishes goes with it. You review the draft with your own lawyer. We comment on how the trustee runs the powers described, so that the deed matches real practice.
Once signed, the trust settles into routine: records, meetings when a decision is due, accounts, and identity checks on a schedule set by risk.
Timing depends on your documents and on third parties such as the law firm, the local partner and the bank. We promise no dates, and we show where each step stands.
How to start
The order of steps is fixed: enquiry, identity checks, structure design, drafting, signing, registration where needed, and funding.
A short call or a quote is enough to begin. Neither commits you, and each lets us ask the right questions about your assets and the countries involved.
Every stage, and what sets the pace, is covered in the step-by-step set-up guide.
What shapes the cost
Cost depends on the structure, the assets and who does the work. No single total fits every family. We publish the set-up fee for a standard trust or foundation; annual administration, event work and third-party charges are quoted after we review your case.
Four things move the total: the type of structure, any private trust company or foundation added, the kind of assets, and the number of countries involved. Third parties such as the law firm and the local partner charge separately.
What you tell us leads to a quote. It is an estimate and not a binding offer, confirmed after we have seen the structure and the assets.
The cost guide sets out each cost line and who charges it.
Guernsey compared with Jersey
Guernsey and Jersey are neighbouring Bailiwicks, each with its own trust statute and its own rules for private trust companies.
The practical differences lie in those rules, in the people who run the structure and in whom your advisers know best.
A local partner works with us in each place. See Jersey for the neighbouring island and its own facts.
Weigh three things:
- Where your family and assets are. A trustee close to the business and the bank is easier to work with.
- Which place your advisers know best. Their familiarity with the law shortens drafting and review.
- How much paperwork you want in one hand. One team means fewer hand-offs.
Tax and legal comparisons between places belong with your advisers, because your residence and assets decide the outcome more than the place does.
To set Guernsey beside another place, use the side-by-side comparison tool, or browse every place we cover.
Ready to start? Request a quote for Guernsey, or read the answers to common questions first.
Frequently asked questions
Who can set up a trust in Guernsey?
A settlor with assets to place in trust can begin. The trustee checks who you are and where the assets came from, a Guernsey law firm drafts the deed, and you review it with your own lawyer. A local partner takes a defined role where the work is done in Guernsey.
Is a Guernsey trust the same as a Jersey trust?
No. Guernsey and Jersey are separate jurisdictions with separate statutes, and families often compare them. The better fit depends on where your family, advisers and assets are, and on the law each adviser knows best. Tax and legal comparisons belong with your own advisers.
Sources
- Guernsey Legal Resources: Trusts (Guernsey) Law, 2007, read 2026-11-05.
- States of Guernsey: Foundations Law (media release, 21 December 2012), read 2026-11-06.
- States of Guernsey: Common reporting standard (CRS), read 2026-11-06.
- States of Guernsey: Billet d'Etat XIX 2007, Projet de Loi, The Trusts (Guernsey) Law, 2007, read 2026-11-06.