The Trusts (Jersey) Amendment Law, adopted by the Assembly of the States of Jersey on 12 December 2025, represents one of the most significant reforms of the Trusts (Jersey) Law 1984 in recent years. Having entered into force shortly after its approval and pending formal sanction by the Royal Court, the Law responds to concrete practical needs identified by professionals in the fiduciary sector and seeks to modernise and clarify fundamental aspects of trust law within the jurisdiction of Jersey.
The Trusts (Jersey) Law 1984 constitutes the principal statutory framework governing the creation, administration, protection and termination of trusts under Jersey law. With the adoption of the 2025 amendment, a substantial update has been introduced with the aim of strengthening legal certainty and addressing issues that have emerged in legal scholarship and case law.
Main Amended Articles and Key Innovations
Article 1 – Definition of “corporation”
The Law revises the definition of “corporation” for interpretative purposes, removing the previous exclusion relating to limited liability companies and extending the concept to any “person having legal personality wherever registered or established”. This amendment replaces a more restrictive formulation and clearly broadens the personal scope of application of the statute.
Article 9 – Scope of application of the Law
The amendment to this provision is technical in nature and aligned with the revised definition introduced in Article 1. A reference that was no longer consistent with the reformulated subject categories has been removed, thereby ensuring internal coherence within the legislative text.
Article 9A – Powers reserved by the settlor
The article concerning powers reserved by the settlor has been amended to clarify that such powers may include not only the right to appoint or remove a trustee, but also the right to act or give directions in relation to the appointment or removal of “an officer of any corporation in which the trust holds an interest”. This clarification enhances certainty regarding the scope of reserved powers without undermining the validity of the trust.
Article 19 – Resignation or removal of the trustee (new paragraph 3A)
A new paragraph (3A) has been introduced expressly providing that the resignation of a sole trustee is ineffective if it would result in there being no trustee in office. This provision fills a potential operational gap and prevents situations of administrative vacuum.
Article 28 – Corporate trustee acting by resolution (decision-making procedures)
The article has been adapted to clarify that, where the trustee is not a corporation, references to “resolutions” are to be understood as referring to the equivalent decision-making process of that trustee. The provision has thus been updated to reflect trustees that do not operate under a traditional corporate model.
Article 43 – Termination of a Jersey trust
One of the most significant reforms concerns the limitation of beneficiaries’ right to require the early termination of a trust (similar to the rule in Saunders v Vautier). The beneficiaries’ right to request the termination of the trust does not apply where there are potential future beneficiaries or where the trust has been established for a specific purpose (including a non-charitable purpose). The reform thereby strengthens the stability of the trust structure and safeguards its long-term planning function.
Article 43A – Security and priorities
The provision concerning security has been reinforced: liens are no longer taken into account in assessing the trustee’s right to require security, and a clear rule has been introduced regarding the priority of security granted over trust assets as against any lien. This ensures greater certainty in the allocation of security interests and priority rights in relation to obligations owed to trustees or former trustees.
Article 55 – Protection of third parties
The reference to “actual notice” has been replaced with the more objective concept of “notice” in relation to persons dealing with a trustee. This amendment simplifies the assessment of the circumstances in which a third party may invoke protection when transacting with a trustee, thereby reducing interpretative uncertainty.
Conclusion
The Trusts (Jersey) Amendment Law of 12 December 2025 constitutes one of the most substantial revisions of Jersey trust law in recent years. It consolidates Jersey’s position as one of the leading international trust jurisdictions. While partly technical in nature, the amendments address core issues such as governance, termination rights, structural stability of the trust, protection of trustees and safeguarding of third parties.
Taken as a whole, the reforms enhance legislative clarity and systemic reliability, confirming Jersey’s commitment to responding to the evolving international demands of the fiduciary sector.
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The information provided in this article is of a purely general nature and is not a substitute for specific advice that may be requested here.
