Jersey Introduces New Legislation To Protect Trusts

The Trusts (Amendment No 5) (Jersey) Law 2012 is the latest in a series of amendments to the Trust (Jersey) Law 1984 designed to maintain Jersey's position as an attractive repository for private wealth and a leading trusts jurisdiction.

In 2006, Article 9 of the 1984 Law was amended to increase the protection afforded to Jersey Law trusts under attack by foreign courts. Article 9(1), as amended in 2006, provided that questions relating to the validity and administration (including capacity of Settlors, exercise of powers and dispositions of property) of Jersey trusts should be determined in accordance with Jersey law and without reference to foreign law.

Almost immediately, questions were raised as to the effect of these amendments. In Re B (heard the day after the 2006 amendments came into force) the Court held that, notwithstanding the new law, the principle of comity still applied in respect of enforcing an English order 'varying' a Jersey trust and that, in