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Guernsey trust law and key features
Guernsey trust law rests on the 2007 Trusts Law, with a separate law for foundations. This page sets out the governing law, who may act as trustee, and the features and limits families ask about, marking the points your lawyer confirms for your case.
Reviewed by a senior trust administrator, updated
The legal frame at a glance
What the law provides, with the source number for each item.
Key facts
- Perpetuity period
- No set limit on how long a Guernsey trust lasts, subject to its terms (s. 16)[3]
- Foreign law rules
- Validity of a Guernsey trust follows Guernsey law, not other law (s. 14)[3]
- Reserved settlor powers
- Reserving powers, such as to revoke or vary, does not void the trust (s. 15)[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
- states the purpose and transfers assetsTrusteeHolds the assets and manages them under the trust deed
- applies assets toTrust purposeThe stated purpose the trust serves, in place of beneficiaries
- Enforcer can enforce the purposeEnforcerCan hold the trustee to the terms of the trust
- 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 |
| Enforcer | Can hold the trustee to the terms of the trust |
| Trust purpose | The stated purpose the trust serves, in place of beneficiaries |
| Trust assets | The property held in the structure |
- A purpose trust is held for a stated purpose, not for named beneficiaries.
- The deed provides for someone to enforce the purpose, as Guernsey counsel advises.
- The trustee holds legal title and follows the purpose set out in the deed.
- We work with a local partner where the work is done in Guernsey; your engagement letter sets out its role.
- Local counsel advises on the roles and limits before the deed is drafted.
The governing law
Trust law in Guernsey rests on a statute and on the deed. The statute is the Trusts (Guernsey) Law, 2007 (source: Guernsey Legal Resources, Trusts (Guernsey) Law, 2007).
The statute supplies default rules, and a deed may adjust many of them. Where the deed is silent, the trustee follows the default. Much of how a trust runs from day to day therefore comes down to the deed’s wording.
Another law matters in practice. The Foundations (Guernsey) Law 2012 covers foundations, which are separate legal entities rather than trusts (source: States of Guernsey, Foundations Law media release).
The points below are the ones families ask about.
The overview of Guernsey trusts shows how the structure fits together.
Who may act as trustee
The deed may name an individual or a company as trustee. A professional trustee is a business that serves clients in that role and keeps the records the deed and the law call for.
Where work is carried out in Guernsey we bring in a local partner, and your engagement letter describes its role.
Some families set up a private trust company to act as trustee of their own trusts. Before the company is formed, your lawyer confirms how the law applies to your family.
Individual or professional trustee? Weigh continuity if the person dies or moves away, the way records are kept, and the time the role demands.
Features the law allows
Families who compare places usually ask about five features. Each one is set out below with its section number where the law gives one.
- How long a trust may last. The Trusts Law sets no limit on how long a Guernsey trust lasts, subject to its terms (s. 16; source: States of Guernsey, Billet d’Etat XIX 2007).
- Reserved powers. Settlors often keep powers such as directing investments. The Trusts Law says this does not void the trust (s. 15). Your lawyer confirms how it applies to your deed.
- Purpose trusts. A trust held for a stated purpose rather than named people is a familiar tool for owning the shares of a private trust company. Guernsey counsel advises on the roles it needs, including an enforcer of the purpose.
- Foundations. A foundation is a separate entity incorporated under its own law. It is an alternative for families who prefer a company-style structure to a trust.
- Protectors and letters of wishes. These come from the deed. The law leaves room for them, and the deed defines them.
No feature is a result in itself. Whether it helps your family turns on where you live, what you own and the law of the places where the assets sit.
Limits and requirements
Limits in the law protect the beneficiaries as much as they protect the settlor.
Keeping a power does not relieve the trustee of its duties. The deed must still be followed and the beneficiaries’ interests must still come first.
We verify the identity of the settlor, any protector and the other people connected with the trust before we accept it, and we keep records of the work.
The trustee also has reporting duties, which are set out in the tax and reporting guide.
The rules for a private trust company depend on how it is set up; your lawyer confirms them for your case.
The checks on your own deed usually take place at the structure design stage, which the set-up guide describes.
Sources and review dates
The facts table cites the source and date for each item.
None of this is legal advice.
To see what a structure like this costs and who charges for it, read the Guernsey cost guide.
For next steps, practical points are answered on the common questions page, and you can request a quote for Guernsey when you are ready.
Frequently asked questions
Which law governs a trust in Guernsey?
A trust set up under Guernsey law is governed mainly by the 2007 Trusts Law, with the deed setting the detailed rules. A well-drafted deed names its governing law expressly. Your lawyer confirms how the statute applies to your deed.
Can a company be the trustee of a Guernsey trust?
The deed can appoint a person or a company as trustee. A company carries on if an individual trustee dies or moves away, and it keeps the trust records in one place. Weigh continuity against how much time the role takes.
Can a trust in Guernsey have a protector?
A deed can name a protector to consent to key decisions, such as adding beneficiaries. The role comes from the deed rather than from a statute. Local counsel advises on what powers a protector can hold before the deed is drafted.
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: Billet d'Etat XIX 2007, Projet de Loi, The Trusts (Guernsey) Law, 2007, read 2026-11-06.