Overview: Guernsey Foundations - A New Tool In The Box

In this overview, Heath Martorella of Collas Crill Trust and Angela Calnan of Collas Crill, Guernsey, look at the characteristics, potential uses and some practical considerations for Guernsey Foundations

1. BACKGROUND

The Foundations (Guernsey) Law, 2012 ('the Law') came into force on 8th January 2013. Foundations offer a new solution for clients wishing to have more directional power over assets, compared to traditional forms of trust structure, which only permit limited forms of control and influence.

Foundations have been established in civil law countries for many years, as the trust concept was not recognised. However in recent years, an increasing number of jurisdictions - including a number of common law international finance centres - have now enacted foundations legislation, enabling fiduciary service providers to broaden their geographic reach of business.