Wealth Management in Jersey: Trust Law, Foundations and Family Wealth

Jersey is among the world's most established and well-regarded international financial centres. A Crown Dependency with its own legislature, legal system, and tax authority — but not part of the UK or the EU — Jersey has developed a financial services sector of global significance, with an estimated £1.5 trillion or more in assets under administration as of 2026. Its combination of robust trust law, a highly experienced professional community, strong regulatory standards, and tax neutrality at the fiduciary level makes Jersey a preferred domicile for international family wealth structures across the full spectrum of complexity.

This guide explains the key features of Jersey's legal and financial framework, its trust and foundation vehicles, and why it remains a premier jurisdiction for high-net-worth families managing wealth across multiple generations and jurisdictions.

Jersey's Tax and Regulatory Position

Jersey levies no capital gains tax, no inheritance tax, no stamp duty on the transfer of securities, and no wealth tax. Income tax is levied at a flat 20% on Jersey-source income of residents and on certain categories of Jersey-sourced income of non-residents. For international holding structures — trusts, companies, and foundations domiciled in Jersey but whose assets and beneficiaries are overseas — Jersey does not tax investment returns or income arising outside the island.

This tax neutrality at the vehicle level is essential to Jersey's attractiveness: a Jersey discretionary trust holding a globally diversified investment portfolio does not pay Jersey tax on the portfolio's returns. Tax is paid by beneficiaries in their respective countries of residence when distributions are made or when they are otherwise treated as receiving the income or gains under their home jurisdiction's rules.

Jersey is not part of the EU but has separate arrangements with the EU under which Jersey financial services providers can access EU markets in certain circumstances. Jersey participates in the Common Reporting Standard (CRS), the OECD's automatic exchange of financial account information, and provides information to tax authorities in the UK, EU member states, and over 100 other jurisdictions. Jersey also cooperates with UK HMRC under longstanding bilateral agreements.

Jersey Trust Law

Jersey trust law is codified in the Trusts (Jersey) Law 1984, as amended and updated multiple times since. Jersey's trust legislation is among the most sophisticated and comprehensive in any common law trust jurisdiction, providing clear statutory answers to many questions that are left to case law in England and other jurisdictions.

Key features of Jersey trust law include:

Reserved Powers

A settlor can reserve significant powers over a Jersey trust without the trust being treated as a sham or being set aside as self-dealing. Reserved powers can include the power to invest trust assets, the power to appoint and remove trustees, the power to add or remove beneficiaries, and the power to revoke or amend the trust. This flexibility is highly valued by settlors who wish to retain involvement with the management of their family wealth while achieving the legal separation of assets that a trust provides.

Firewall Provisions

Jersey's strong firewall provisions protect Jersey trusts from challenges based on foreign law. Where a court in another country asserts that a Jersey trust is void or voidable based on the application of foreign forced heirship rules or foreign law concepts of marriage and divorce, Jersey courts may refuse to recognise those claims in relation to Jersey trusts. This makes Jersey attractive for families from jurisdictions with mandatory inheritance rules (such as civil law countries with forced heirship or Sharia-law jurisdictions).

The Hague Convention

Jersey recognises the 1985 Hague Convention on the Law Applicable to Trusts and on their Recognition, meaning that Jersey trusts settled with a Jersey governing law clause will generally be recognised as valid trusts by the courts of Convention signatory states.

Protectors

Jersey trust law expressly recognises the role of the protector — a person appointed to supervise the trustee and whose consent is required for certain decisions. Protectors are commonly used in Jersey trusts to give the family (or a trusted independent adviser) oversight of the trustee's conduct without full control.

Jersey Foundations

Jersey introduced foundations under the Foundations (Jersey) Law 2009. A Jersey foundation is a legal entity without shareholders or members, administered by a council in accordance with its charter and regulations. The foundation holds assets in its own name for the benefit of beneficiaries or for defined purposes.

Jersey foundations combine features of trusts and companies:

• Like a trust, a foundation can be structured for the benefit of beneficiaries and can make distributions
• Like a company, a foundation has separate legal personality and can own assets, enter contracts, and sue in its own name
• Unlike a company, a foundation has no shareholders; unlike a trust, it does not require a trustee as a separate legal owner

Foundations are particularly useful for:

• Civil law families: individuals from jurisdictions where trusts are not recognised or are poorly understood may be more comfortable with a foundation as a wealth-holding vehicle
• Philanthropy: purpose foundations can hold assets for defined charitable or philanthropic objectives
• Purpose structures: business succession planning vehicles and holding structures for long-term assets such as real estate or private equity

Private Trust Companies

A private trust company (PTC) is a company established solely to act as trustee of one family's trusts. Unlike a professional corporate trustee (which acts for many clients), a PTC acts only for a single family, allowing the family's trusted advisers and family members to participate in the governance of their own trusts through the PTC's board.

Jersey is one of the preferred domiciles for PTCs. A Jersey PTC must be administered by a licensed Jersey trust company, which acts as the regulated "anchor" ensuring compliance with Jersey's regulatory requirements. PTCs are particularly suitable for very large family trusts, complex structures with multiple sub-trusts, or families who wish to maintain a direct governance role.

Investment Management and Private Banking

Jersey hosts a substantial private banking and investment management sector. Major institutions with Jersey operations include: Barclays, Coutts, Lloyds International, RBC Wealth Management, HSBC Private Bank, and a range of specialist boutiques. Jersey-based investment managers handle portfolios for private client trusts, foundations, and individuals, and the island has a deep pool of experienced investment professionals.

The Jersey Financial Services Commission (JFSC) regulates all financial services activity, including banking, investment management, fund administration, and trust and company services. Jersey's regulatory framework is internationally respected and has consistently maintained correspondent banking relationships with major global banks.

Fund Structures in Jersey

Jersey is also a significant fund domicile. Jersey's fund legislation accommodates UCITS-equivalent structures, alternative investment funds, and private placement structures. The Jersey Private Fund (JPF) is a lightly regulated vehicle for up to 50 professional or institutional investors, requiring only JFSC notification rather than full authorisation. JPFs have proved popular for family office co-investment structures, real estate funds, and private equity vehicles.

Substance Requirements

The OECD's Base Erosion and Profit Shifting (BEPS) project and associated international pressure has led Jersey to introduce substance requirements for certain categories of Jersey entity, including holding companies, financing vehicles, and fund management companies. Jersey entities that claim tax benefits from their Jersey status must demonstrate genuine economic activity in the island, including having adequate staff, premises, and management decision-making on the island.

For trust and foundation structures — which are tax-neutral (not claiming treaty benefits or specific low-tax rates) — substance requirements are less directly relevant, but maintaining high-quality Jersey trustees and advisers who manage the structures genuinely from the island remains important for the structures to be respected internationally.

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This guide is for educational purposes only and does not constitute regulated financial, tax, or legal advice. Jersey law and international regulatory requirements change; always seek qualified professional advice. Investments can fall as well as rise in value.

How Global Investments Can Help

Global Investments has extensive experience advising families on the establishment and ongoing management of Jersey trust and foundation structures. We work alongside JFSC-regulated trustees, private banks, and legal advisers in Jersey to help clients achieve their wealth succession, asset protection, and investment management objectives — always coordinating the Jersey structure with the family's overall international planning requirements.

Whether you are establishing a new Jersey trust, reviewing an existing structure, or considering whether to move an offshore structure from another jurisdiction to Jersey, contact us to arrange a confidential discussion.