Year on year there are stories and pessimists
forecasting the demise of the trust industry. British newspapers
like to portray Guernsey trustees as the facilitators of
"suspect" tax planning. But what is the reality? In order
to understand the trust industry and its continuing relevance to
21st century international families, the key is to understand the
"Why's". Why do people establish trusts or
foundations? Why do they do so in Guernsey? And why should they
continue to do so?
Why establish a trust or foundation?
Trusts have always been used by society in one form or another.
When knights of old rode off to the Crusades they entrusted their
estates to trusted allies (often the Church) to look after their
estates and to provide for their families pending their –
hopeful – return. Those entrusted with looking after the
assets were the trustees, the knight was the settlor and his
family, who remained at home and relied on the trustees to
safeguard the assets and
