Background
So what precisely is an asset protection trust and what is it,
over and above a normal trust that an asset protection trust is
seeking to achieve? This paper considers these issues from a
Jersey law perspective and fundamentally asks the question to what
extent a Jersey trust, once established, will protect assets from
creditor claims.
By way of background a trust exists under Jersey law where a
person holds or has vested in him property for the benefit of
another person known as a beneficiary (Article 2 of the Trusts
(Jersey) Law 1984, as amended (TJL)). To
this end a trust is a tripartite relationship between trustee,
property and beneficiary which is consistent with the definition of
a trust in most common law trust jurisdictions (to include the
DIFC) and the Hague Convention on the law applicable to trusts and
on their recognition.
