Guernsey trust questions, answered

The trustee holds legal title to the assets and runs them under the deed. That covers keeping records and accounts, calling meetings when a decision is due, and renewing identity checks. Where work is done in Guernsey, a local partner takes a defined role alongside us.

Think of three parties. The settlor puts assets in, and the beneficiaries are those who may receive from them, listed by name or described as a class, such as grandchildren. A purpose trust names no beneficiaries at all, because it exists for a stated aim.

A will acts only on death and usually passes through probate. A trust can start while you are alive, and the trustee holds its assets under the deed whatever happens to you. Plenty of families hold both, and your lawyer shows how the two documents fit together.

They are different things. A company is a legal person owned by shareholders and run by directors. A trust is a relationship in which the trustee owns assets for the beneficiaries under the deed. A trust may own a company, and a family may form a private trust company to act as trustee.

It is a non-binding note telling the trustee how you hope its discretion will be used. Because it does not bind, the trustee stays free to respond when circumstances change. Revise it whenever you like; we file every version with the trust records.

A trust can hold cash, listed investments, shares in a family company and property, among other assets. The trustee asks for evidence of where each asset came from and how it is held. Assets in other countries bring those countries' rules, so your advisers there confirm them before you transfer.

The deed is drafted by a Guernsey law firm, and you read the draft with your own lawyer. Our part is to comment on how the trustee exercises the powers it describes, so that the paper matches practice. Sign only once you are content with the text.

Yes, a family company's shares are a frequent trust asset. The trustee requests the incorporation papers and the share register to confirm who owns and controls the company. A trading business raises different questions from listed securities, so say early which kind of asset you mean.

Possibly. A trustee change normally happens through a deed of retirement and appointment under the trust's own governing law, and your lawyer confirms how that applies to your deed. Another route keeps the current trustee in place, and we coordinate the papers and reporting with it. Send the deed and we will say which route may fit.

Often yes. The Trusts (Guernsey) Law, 2007 says reserving powers, such as to revoke or vary, does not void the trust (s. 15); your lawyer applies it to your deed. The alternative is to appoint a professional manager and receive regular reports.

In a discretionary trust the trustee chooses who is paid, how much and when, with your letter of wishes as a guide. Each decision goes into the minutes. When a beneficiary asks for money, the request is weighed against the deed and the circumstances at that time.

The answer lies in the powers the deed gives at the start. Many deeds allow the trustee or a protector to add or remove beneficiaries. If the deed gives no such power, a change can need a court order or the consent of those affected. Your lawyer reads the deed to confirm.

Your death does not wind the trust up. It carries on under its deed, and the trustee keeps administering it for the beneficiaries. Assets in other countries follow the law there, so advisers in each place should confirm the position.

The trustee collects tax residence forms and reports where the rules require it. Guernsey takes part in automatic exchange of tax information. Whether a given trust reports depends on its structure, and we confirm that in writing. With your consent, we pass the report to your tax adviser.

No. A trust cannot be used to hide assets or to escape every rule. Banks, tax authorities and the trustee must know who stands behind it. How you are taxed depends on where you live, and your own adviser explains that.

For work carried out in Guernsey, a local partner joins the structure in a defined role and screens you separately. Your engagement letter states which role it holds and what it does for your trust, so there is no guesswork about who does what.

Describe the structure you have in mind, the kind of assets and the countries involved. You get a non-binding estimate, which we confirm once we have seen the documents and assets. The set-up fee for a standard trust or foundation is on the costs page.