Guernsey Trusts:

Guernsey trust law has a mixed English/Norman pedigree, but the Trust Law 1989, which mostly reflects English common law, clarified many points, on the whole giving extra protection to beneficiaries. Appeal is to the English Privy Council. There are no registration or filing requirements for Guernsey trusts.

(NB Guernsey law does not formally apply in Alderney and Sark but has a substantial influence on proceedings.) The Financial Services Commission is engaged on a review of Guernsey's financial governance regime which may well tighten the regime for trusts, among other sectors.

Guernsey has ratified the Hague Convention, and has made specific provision for the non-recognition of foreign judgements and the exclusion of foreign inheritance laws. The maximum perpetuity period is 100 years. There is no specific provision for 'purpose' trusts or for asset protection trusts.

Guernsey International Trusts

It is possible to export a Guernsey trust replacing Guernsey trustees with non-resident trustees and changing the proper law of the trust; equally, a trust established in another jurisdiction may migrate to Guernsey by appointing Guernsey resident trustees. Trust accounts must be maintained although they do not require auditing and the trustees of a non-resident trust do not need to submit returns or provide trust accounts to the administrator of income tax.

Version date: 07.05.06