It is now awaiting Royal sanction and registration before commencement.
Key changes adopted on 12 December 2025
- Corporate trustees – The law clarifies how corporate trustees that are not companies may act by equivalent decision processes, modernizing Article 28.
- Trust termination (Article 43) – The traditional ability of beneficiaries to require termination of a trust is now far more restricted. Termination by all beneficiaries together is blocked if any potential future beneficiaries exist under the trust terms or if there are purpose clauses (charitable or non‑charitable). This effectively limits the scope of what was often seen as the domestic equivalent of the Saunders v Vautier rule.
- Security priority (Article 43A) – Amendments confirm that security interests in trust property granted by the trustee take priority over liens that arise in favour of trustees, former trustees, or their successors unless agreed otherwise. This addresses uncertainty from recent case law on trustee lien ranking.
- Trustee protections (Article 55) – Changes to remove the word “actual” from notice provisions simplify the standard of notice required when trustees deal with third parties.
- Sole trustee resignation – Clarifies that a sole trustee cannot effectively resign if it would leave the trust without any trustees.
Across the Jersey fiduciary and legal community, the Trusts (Jersey) Amendment Law has been widely characterised as a targeted and pragmatic reform rather than a fundamental reshaping of the trust regime. Practitioners broadly agree that the amendments respond directly to developments in case law and to points of uncertainty that had emerged in day-to-day trust administration.
A recurring theme in professional commentary is the clarification of priority between trustees’ liens and security interests granted over trust assets. The consensus view is that the amendments are designed to reinforce commercial certainty, particularly for third-party lenders, by confirming that security voluntarily granted by trustees should not be undermined by later claims under trustees’ liens. This is seen as strengthening Jersey’s attractiveness as a jurisdiction for trust-based financing and secured lending structures.
Another significant focus of commentary is the restriction on beneficiaries’ ability to require the termination of a trust. Professionals note that the revised provisions deliberately narrow the circumstances in which a trust can be collapsed by unanimous beneficiary action, particularly where future or potential beneficiaries exist or where purpose elements are present. This is widely interpreted as a policy choice to preserve long-term trust planning, protect settlor intent, and avoid outcomes akin to an unrestricted application of the Saunders v Vautier principle in modern discretionary and purpose trust structures.
Industry analysis also highlights a series of technical but important refinements aimed at improving operational clarity. These include clearer rules around the resignation of a sole trustee, updated provisions on how non-corporate or atypical trustees may validly make decisions, and minor wording changes intended to align statutory language with contemporary trust practice. While individually modest, these adjustments are viewed as collectively enhancing legal certainty and reducing scope for dispute.
Overall, the professional consensus is that the amendments reflect a careful balance between creditor protection, trustee safeguards, and beneficiary interests. They are seen as the product of extensive consultation with the trust industry and as reinforcing Jersey’s reputation for responsive, technically robust trust legislation that evolves in step with both judicial developments and commercial realities.
Previous material amendments to the Trusts (Jersey) Law
The Trusts (Jersey) Law has only been amended eight times in total since 1984, reflecting a relatively stable core framework that is incrementally updated rather than frequently rewritten. The most significant amendments in the last 20 years have been the 2006 clarifications, the 2012 non-charitable purpose trust confirmations, and the 2025 reform package, each addressing evolving industry needs, judicial developments, and international trust practice.
Amendments to the Trusts (Jersey) Law 1984 over the last 20 years have been the following:
1. 2006 Amendment (commonly referred to as Amendment No. 4)
• This was an early formal amendment to the 1984 Law that clarified and simplified key provisions of the Trusts Law, with the aim of bringing greater legal certainty to how certain trust matters are treated under Jersey law.
• While the amendments did not overhaul the system, they refined language and operation of the 1984 Law to remove ambiguity and align statutory text with established practice. This included technical changes around interpretation and application of trust concepts.
• While the amendments did not overhaul the system, they refined language and operation of the 1984 Law to remove ambiguity and align statutory text with established practice. This included technical changes around interpretation and application of trust concepts.
2. 2011/2012 – Trusts (Amendment No. 5) (Jersey) Law
• Approved by the States of Jersey in late 2011 and coming into force in 2012, this was the fifth formal amendment to the 1984 Law.
• Its principal focus was on non-charitable purpose trusts. It provided clear statutory authority for trusts to be established for purposes rather than for beneficiaries, addressing doubts in practice about whether such structures were fully authorised. Under this amendment, a non-charitable purpose trust could be created for any purpose whatsoever (subject to an enforcer), including purposes such as acquiring, holding or owning property, without the need for conferral of benefit on a human beneficiary.
• It also enhanced protections against foreign court interference by clarifying the scope of Article 9, which bars inconsistent foreign judgments from undermining the validity or administration of a Jersey trust.
• Its principal focus was on non-charitable purpose trusts. It provided clear statutory authority for trusts to be established for purposes rather than for beneficiaries, addressing doubts in practice about whether such structures were fully authorised. Under this amendment, a non-charitable purpose trust could be created for any purpose whatsoever (subject to an enforcer), including purposes such as acquiring, holding or owning property, without the need for conferral of benefit on a human beneficiary.
• It also enhanced protections against foreign court interference by clarifying the scope of Article 9, which bars inconsistent foreign judgments from undermining the validity or administration of a Jersey trust.
3. 2025 – Trusts (Jersey) Amendment Law
• Adopted by the States on 12 December 2025, this is the eighth set of amendments to the 1984 Law.
• It responds to practical issues identified by practitioners and through litigation, and covers:
• It responds to practical issues identified by practitioners and through litigation, and covers:
– Clarification of corporate and non-corporate trustee decision mechanisms.
– Restriction of beneficiary-led termination rights, limiting circumstances in which a trust can be terminated when future interests or purposes exist.
– A new statutory security priority regime confirming that security interests granted by trustees take appropriate priority over trustee liens unless otherwise agreed.
– Technical clarifications including the resignation of a sole trustee and notice standards for persons dealing with trustees.
– Restriction of beneficiary-led termination rights, limiting circumstances in which a trust can be terminated when future interests or purposes exist.
– A new statutory security priority regime confirming that security interests granted by trustees take appropriate priority over trustee liens unless otherwise agreed.
– Technical clarifications including the resignation of a sole trustee and notice standards for persons dealing with trustees.
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Sources
- Trusts (Jersey) Amendment Law 202– (adopted text), Jersey Law website
https://www.jerseylaw.je/laws/pending/Pages/TrustsAmendmentLaw202-_ADOPTED.aspx - Government of Jersey – Consultation on amendments to the Trusts (Jersey) Law 1984
https://www.gov.je/Government/Consultations/pages/trustslawamendments.aspx - STEP – Jersey proposes amendments to trusts law
https://www.step.org/industry-news/jersey-proposes-amendments-trusts-law - Mourant – Consultation on amendments to the Trusts (Jersey) Law 1984
https://www.mourant.com/news-and-views/updates/updates-2024/consultation-on-amendments-to-the-trusts-%28jersey%29-law-1984.aspx - Trusts (Amendment No. 5) (Jersey) Law 2012 – practitioner commentary
https://www.bedellcristin.com/knowledge/briefings/archive-2009-2019/trusts-amendment-no5-jersey-law-2012/ - Ogier – Non-Charitable Purpose Trusts in Jersey
https://www.ogier.com/news-and-insights/guides-and-factsheets/at-a-glance-guide-non-charitable-purpose-trusts/ - Collas Crill – Trusts (Jersey) Law: once, twice, eighth time amended
https://www.collascrill.com/articles/trusts-jersey-law-once-twice-eighth-time-amended/