In September last year, the Royal Court of Jersey handed down what is now widely considered to be a landmark decision in Jersey trust law. Although the decision was handed down in September 2012, excerpts were only recently released to the public; this is due to the scarcity of judgments concerning the role – and removal – of the protectors of a trust. Katy Millington discusses more here.

The inheritance laws in Dubai remain uncertain for non-Muslim ex-pats residing in the region. As a result, estate planning is far from straightforward and, in this article, Angela Calnan looks at the problematic legal framework and some possible estate planning solutions.

New tax exchange agreements announced by Jersey and Guernsey as fight against tax evasion continues; HMRC leaves no stones unturned. Ed Stone explains.

The Jersey Court of Appeal has clarified the position regarding costs in non-adversarial trust applications to the Court both at first instance and on appeal. This decision is relevant to any Trustee considering making an application to the Court and gives them some guidance as to how their costs may be treated. James Tee explains how in this article.

What is Collas Crill’s pensions and employee benefits service? It is a comprehensive legal service to assist businesses and service providers with the establishment and ongoing administration of both international and locally focused pension and employee incentive plans.

The Foundations (Jersey) Law 2009 came into force on 17 July 2009 and created what was hailed as an important new wealth management vehicle to assist in Jersey’s development of relations with new markets, particularly the Middle East, India and China. This was the culmination of over three years’ work. The question is whether the Jersey Foundation will prove to be a success or will the exercise transpire to have been a waste of time.

Many benefits still exist for those who are resident in the UK but who have not acquired a UK domicile and are likely to continue, so the door may never completely close. We look at the challenges and opportunities for Jersey.

More than 100 Jersey foundations have been registered since the Foundations (Jersey) Law came into force on 17th July 2009. Since then registrations have been steadily increasing, from 20 in the last 6 months of 2009 to nearly 30 in the first 6 months of 2011 and 9 in March 2011 alone. This article looks at who is using them and what for.

The key to controlling the cost of trust litigation is effective business management, believes one of Jersey’s most experienced trust lawyers. Establishing clear responsibility and managing processes effectively would save time and costs should an issue become contentious.

The primary purpose of asset protection structures is to protect against claims made by creditors and consequently are often used for persons embarking on a risky business venture or persons asked to give personal guarantees to the activities of that business. This note considers the extent to which Jersey and Guernsey trusts can be used in this way.

The draft legislation creating new taxes for UK residential properties worth over £2 million was published as promised on 11 December. The government remains determined to stop people from using 'non-natural persons' (or, as we prefer to call them, zombies) to hold high value residential properties, but there have been some significant changes from the original proposals set out in the Budget 2012. 

Although the government has softened its proposals a little - for example narrowing the definition of a zombie, the introduction of new reliefs for "genuine businesses carrying out genuine commercial activity", and an effective rebase to April 2013 for the new CGT charge - the main thrust of the proposals remain. This means that many existing structures will still be affected by the annual charge and the new CGT rules. 

Whether to slay your zombie now, slay later, or stay, will depend upon the particular circumstances of each structure. For new purchasers of property (particularly for investment properties) structuring remains available but there are many complications to understand.

You are invited to a workshop we are holding in January in conjunction with James Quarmby and Emily Osborne from Thomas Eggar. James and Emily will offer a practical guide with case studies and worked examples of how the draft legislation will affect the most commonly encountered structures. Collas Crill's own experts will also be on hand to advise on local issues.

Bring along your own zombie and pick their brains…

Collas Crill’s fiduciary team advises institutional trustees and high net worth individuals on all aspects of Guernsey and Jersey trust law.

The draft legislation creating new taxes for UK residential properties worth over £2 million was published as promised on 11 December. The government remains determined to stop people from using 'non-natural persons' (or, as we prefer to call them, zombies) to hold high value residential properties, but there have been some significant changes from the original proposals set out in the Budget 2012. 

Although the government has softened its proposals a little - for example narrowing the definition of a zombie, the introduction of new reliefs for "genuine businesses carrying out genuine commercial activity", and an effective rebase to April 2013 for the new CGT charge - the main thrust of the proposals remain. This means that many existing structures will still be affected by the annual charge and the new CGT rules. 

Whether to slay your zombie now, slay later, or stay, will depend upon the particular circumstances of each structure. For new purchasers of property (particularly for investment properties) structuring remains available but there are many complications to understand.

You are invited to a workshop we are running in January in conjunction with James Quarmby and Emily Osborne from Thomas Eggar. James and Emily will offer a practical guide with case studies and worked examples of how the draft legislation will affect the most commonly encountered structures. Collas Crill's own experts will also be on hand to advise on local issues.

Bring along your own zombie and pick their brains…

The Foundations (Guernsey) Law, 2012 came into force today, Monday, 7 January 2013.

It will be possible to create a Guernsey Foundation from Wednesday, 9 January 2013.

The Guernsey Registry has announced it will be accepting registration of Foundations from 9 January 2013 following confirmation of its fee proposals which are anticipated to be similar to those applicable to Guernsey companies.

Registration of foundations can only be undertaken by Guernsey licensed fiduciaries and, in anticipation of the Foundations Law coming into effect, the Guernsey Financial Services Commission has issued a consultation on a draft Code of Practice applicable to Foundation Service Providers. The Commission has requested comments on the consultation by 25 January 2013.

Read more about Guernsey Foundations: Guernsey Foundations - Best of Breed?

If you have any queries about the new law, the consultation or the registration and use of Guernsey Foundations, please do not hesitate to contact us:

Edward Stone, Consultant
T: +44 (0)1481 734271 E: edward.stone@collascrill.com

Angela Calnan, Senior Associate
T: +44 (0)1481 734233 E: angela.calnan@collascrill.com

Karen Farman, Senior Associate
T: +44 (0)1481 734295 E: karen.farman@collascrill.com

The idea of introducing an anti-avoidance rule was first mooted by Gordon Brown but dropped, and then resurrected by the coalition in December 2010 when it asked Graham Aaronson QC to consider whether a general anti-avoidance rule (a GAAR) should be introduced in the UK. The Channel Islands take a zero tolerance stance on tax abuse and both the Jersey and Guernsey Financial Services Commissions have been effective in closing down abusive schemes. Jersey and Guernsey should therefore welcome the GAAR, says Edward Stone in this article, provided that once finalised and the promised guidance has been published, it does bring clarity and certainty to the often complex UK tax laws.