The Trust (Amendment No. 5) (Jersey) Law has been amended and is awaiting Privy Council approval. The new amendments include definitions of a ‘professional trustee’ as a person registered under Article 9 of the Financial Services (Jersey) Law 1998 by the Jersey Financial Services Commission to carry on trust business as defined under the law. Also redefined is ‘purpose’ which now includes the acquisition, holding, ownership, management or disposal of property, and the exercising of any function. Whether or not a purpose confers a benefit on a person, or is capable of consuming the income or capital of the trust, will be immaterial. The purpose of this is to offer purpose trusts to Jersey customers and to make sure that Jersey remains a competitive jurisdiction.

An important change has been made to the law in connection with the application of foreign law to Jersey trusts. The amendment clarifies the position and states that the judgment of a foreign court, or the decision of a foreign tribunal, to alter or vary a trust, cannot be enforced by the Royal Court.

Other changes include the ability of a professional trustee to be entitled to reasonable remuneration and the ability of a trustee to contract with himself when the trustee has separate capacities in respect of two or more trusts.

Also, on ceasing to be a trustee, a person may require to be provided with reasonable security against liabilities before transferring the trust property to his successor.

A further amendment concerns the period in which an action for breach of trust may be brought. Where there is an adult beneficiary, an action for breach of trust should be brought three years from the date that final accounts were presented or when the adult beneficiary becomes aware of the breach whichever is earlier. The same period, three years, is the period in which a trustee may sue a former trustee for breach of trusts starting from the date the former trustee ceased to be a trustee. There is also an overriding provision that no action may be brought for breach of trust more than 21 years after the breach.