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Jersey trust: how it works
A Jersey trust is a trust governed by the law of Jersey, in the Channel Islands, in which a trustee holds assets for the beneficiaries or purposes named in a deed. Families with assets in several countries use it for long-term planning. We work with a local partner where the work is done in Jersey. Ask for a quote.
Reviewed by a senior trust administrator, updated
Key facts
- Governing law
- Jersey law decides validity and effect of a Jersey trust (Article 9)[1]
- Perpetuity period
- A Jersey trust may last for an unlimited period (Article 15)[1]
- Reserved settlor powers
- Reserved powers such as directing investments do not affect validity (Article 9A)[1]
- Reporting to authorities
- Jersey signed the CRS competent authority agreement on 29 October 2014[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 Jersey law.
- We work with a local partner where the work is done in Jersey; your engagement letter sets out its role.
- A letter of wishes guides the trustee's discretion; it does not bind the trustee.
- A Jersey law firm drafts the deed, and you review it with your own lawyer.
- A purpose trust has an enforcer instead of named beneficiaries.
What a Jersey trust is
A trust is a legal relationship set out in a deed, not a company. You, the settlor, transfer assets to a trustee.
The trustee becomes the legal owner, but holds and manages the assets under the deed, for the beneficiaries or for a stated purpose.
The statute behind the structure is the Trusts (Jersey) Law 1984.
Under Article 9, Jersey law decides questions about the validity and effect of a trust governed by it, and no rule of foreign law affects them (source: Jersey Law Website, Trusts (Jersey) Law 1984).
Under Article 15, a trust may continue for an unlimited period unless its terms provide otherwise (same source).
How a court in another country treats assets held in that country is a question for your lawyer there.
Most families choose a discretionary trust. The trustee decides who receives what and when, guided by a letter of wishes that you write and can update.
The letter is not binding, so the trustee can respond when circumstances change.
A trust is also not a way to hide assets. Banks, tax authorities and the trustee itself need to know who stands behind the trust.
What a trust does offer is continuity. A professional trustee follows the deed after the settlor steps back, falls ill or dies.
The law and features page sets out each feature with its source.
Discretionary, purpose and reserved powers trusts in Jersey
Three forms cover most requests. They differ in who decides and who benefits.
- Discretionary trust. The trustee decides distributions within a class of beneficiaries, guided by your letter of wishes.
- Reserved powers trust. Article 9A lists powers a settlor may keep, such as directing investments or appointing and removing a trustee, without affecting validity (source: Jersey Law Website).
- Purpose trust. The trust serves a stated non-charitable purpose rather than named people. It needs an enforcer, who cannot also be a trustee (same source, Arts. 12 and 13).
A Jersey purpose trust is often used to own the shares of a private trust company, so that no single family member owns the trustee. Jersey counsel advises on the roles it needs.
A separate route is the foundation, which is a legal entity rather than a trust. The Foundations (Jersey) Law 2009 provides for the incorporation of foundations (source: Jersey Law Website, Foundations (Jersey) Law 2009).
Which form fits depends on your aims, and it is a question for Jersey counsel as well as for us.
Together these pieces can form a Jersey corporate trust structure: a purpose trust owns a private trust company, the company acts as trustee of the family trusts, and an administrator runs it.
Jersey counsel designs the structure before any deed is drafted.
Who a trust in Jersey suits
This structure suits families who have assets or companies in 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 Jersey against Guernsey or the Isle of Man.
Where you live does not stop you from starting.
If we do not meet you in person, we take at least one extra step to confirm who you are, such as a second set of identity documents or a first payment from an account in your own name.
A typical first conversation covers three points: what you want the trust to achieve, which assets you would place in it, and where the people who will benefit live.
Those answers shape the structure more than any feature of the law does.
Existing trusts are welcome too. Our trust administration service shows what administration covers once we are appointed. A change of trustee follows the steps under the trust’s own governing law, and your lawyer confirms how they apply to your deed.
What the trustee does
A Jersey trust company is a business that acts as trustee for clients. The trustee must follow the deed, act in the interests of the beneficiaries and keep proper records, and the deed names at least one trustee.
In practice the trustee’s work looks like this:
- 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.
We work with a local partner where the work is done in Jersey; your engagement letter sets out its role. The law page on who may act as trustee compares the options for a Jersey trust company.
What stays with you is the choice of beneficiaries, the letter of wishes, and either the decision on how assets are invested or the appointment of a professional manager to decide.
Reporting is part of the job. Jersey signed the competent authority agreement for the Common Reporting Standard on 29 October 2014 (source: Government of Jersey, Common Reporting Standard).
The tax and reporting guide explains what that means for a trust and what to ask your adviser.
Documents and timeline
The trustee asks for identity documents, evidence of where your money and wealth came from, and the details that go into the trust documents. Every person who can direct the trust is checked, not only the settlor.
| 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 Jersey law firm drafts the deed, with your letter of wishes alongside it. You review the draft with your own lawyer.
We comment on how the trustee will run the powers the deed describes, so that the deed matches what will happen in practice.
After signing, the work becomes routine: records, meetings when decisions are needed, accounts and identity checks on a schedule set by risk.
Timing depends on how complete your documents are and on third parties: the law firm, the local partner and the bank. We give no promised dates, and we show where each step stands.
The step-by-step set-up guide walks through every stage and what sets the pace.
What shapes the cost
The cost depends on the structure, the assets and who does the work. There is no single total cost for every family.
We publish the set-up fee for a standard trust or foundation; annual administration, event-based work and third-party charges are quoted after we review your case. Everything beyond the standard scope depends on the details, which is why we ask for them first.
Four things move the total: the type of structure, whether a private trust company or a foundation is added, the kind of assets, and how many countries are involved.
Third parties charge separately for their own work. These include the law firm that drafts the deed, the local partner and the bank.
A quote follows from what you tell us. It is an estimate, not a binding offer, and we confirm it after we have seen the structure and the assets.
The cost guide sets out each cost line and who charges it.
Jersey compared with Guernsey and the Isle of Man
The three Crown Dependencies each have their own trust statute and their own rules for private trust companies. The practical differences lie in those rules and in who your advisers know best.
We work with a local partner in each place. The model is the same, but the roles and the paperwork differ, and each guide explains how.
See Guernsey for the neighbouring Bailiwick and the Isle of Man for the third Crown Dependency.
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 the outcome turns on your residence and your assets, not on the place alone.
Use the side-by-side comparison tool to put Jersey beside another place, or browse every place we cover.
When you are ready, request a quote for Jersey. You can also read the answers to common questions first.
Frequently asked questions
What is a Jersey purpose trust?
A purpose trust is held for a stated non-charitable purpose rather than for named beneficiaries, and it needs an enforcer. A family might use one to hold the shares of its private trust company. Which roles it needs is a point to settle with Jersey counsel before drafting.
Can a Jersey trust own UK property?
A trust can hold assets in other countries, but UK property brings UK law and tax questions that sit outside this page. The answer depends on how the property is held and on who the beneficiaries are. Take advice from your UK advisers first.
Who acts as trustee of a Jersey trust?
The deed names the trustee, which can be an individual or a company, and a trust must have at least one. For tasks carried out in Jersey we use a local partner, and the engagement letter sets out the partner's role in your structure so you know who does what.
Is a Jersey foundation the same as a trust?
No. A foundation is a separate legal entity incorporated under its own law, while a trust is a relationship in which the trustee holds assets under a deed. Some families from civil law countries find a foundation more familiar. Jersey counsel compares the two for your plan.
What is a Jersey reserved powers trust?
It is a trust in which the settlor keeps certain powers, such as directing investments or appointing and removing a trustee. The statute says that reserving them does not affect the validity of the trust. How far a given reservation works depends on the wording of the deed, which Jersey counsel reviews.
Sources
- Jersey Law Website: Trusts (Jersey) Law 1984, read 2026-11-05.
- Jersey Law Website: Foundations (Jersey) Law 2009, read 2026-11-05.
- Government of Jersey: Common Reporting Standard (CRS), read 2026-11-05.