Angela Calnan (TEP)

Collas Crill's experienced Guernsey team regularly advise on the laws of both Sark and Alderney in addition to Guernsey itself.

Changes of trustee documents (DORA or IORAs) usually contain indemnities from the incoming trustee to the outgoing trustee which are often hotly negotiated and can be complex. A change of trustee also presents a good opportunity for the incoming trustee to undertake a due diligence exercise by reviewing the trust documents, ensuring that the previous chain of trusteeship is intact and ensuring that the outgoing trustee ratifies or rectifies any flaws in the trust or the trust documents before the trusteeship is handed over. We have considerable experience in narrowing the issues in these negotiations. We are also well versed in assisting our trustee clients in mitigating risk by spotting (sometimes very significant flaws) in trusts before they are taken on and by ratifying previous discrepancies in a commercial manner – commonly without necessitating the involvement of the court.

Many individuals think of the traditional trust as being the best way to manage their estate planning needs. However, there is a growing client base from civil law jurisdictions unfamiliar with the trust concept launching alternative structures. Recent examples include foundations, private family funds and, increasingly, the Family Limited Partnership (FLP). While initially developed onshore, the concept of FLPs was also harnessed and developed offshore in the Channel Islands as a flexible investment structure and a viable alternative to the traditional trust due to its ability to transmit wealth to younger generations while allowing patriarchs to retain a sensible level of control. This is particularly important for clients using the FLP to transfer the family business or “golden egg”, where a loss of control is so unpalatable. As the name implies, an FLP would be ideally suited to the wealthy family, as it is flexible enough to allow a very bespoke agreement to be put in place to cater for the often very detailed and prescriptive demands of clients who can afford and are used to having something tailor made.

Alongside companies and wills, Family Trusts are still a very popular tool for estate planning and asset protection – perhaps even more so in the light of the envisaged changes to the UK non-dom regime. Family Foundations are proving to be a popular new tool for families looking to ensure their wealth and assets are protected for future generations. We establish trusts and foundations for local and international families to preserve family businesses and ensure appropriate succession planning. We work closely with tax advisers in order to ensure that any new Family trust or foundation fits with a family's overall tax position and will be a workable long term, cost efficient structure. Discretionary trusts are still the most popular but we can also advise on fixed trusts, will trusts and pension trusts.

We advise internationally based companies and trustees on the establishment and operation of employee incentive schemes, addressing issues such as the funding and structuring of awards as between sponsoring employer and trustee, treatment of dividend entitlements for share awards and the formulation of the beneficial class of EBTs having regard to international legal and taxation requirements.

The demand for professional advisers who understand the needs of clients in the region has never been more important. With shariah-compliant products and Islamic finance becoming increasingly mainstream and integrated into the global financial system, it is important to partner with a team who understands the complexities of these structures, while also understanding how more traditional structures can be applied to meet the needs of Middle Eastern clients.

As global legislation, regulation and taxation constantly change and become more complex, it has never been more important to make long-term plans to secure your future, the future of your family or your business. We cut through the legal jargon to provide clear, practical advice when you most need it and anticipate the challenges you are likely to face so that you can rest assured you and your family are in safe hands at every step of the way.

Our team is ideally placed to advise on and project manage such a relocation, advising on everything from company migrations, housing licences and real estate matters through to introductions to other service providers and complementary local businesses. Some of our people have first-hand experience of moving to the island themselves, affording them a unique insight into the challenges and opportunities you are likely to face.

The duties of a trustee plays in managing the trust assets and dealing with beneficiaries not only vary from jurisdiction to jurisdiction, but are dictated by trust agreement and its nuances, the type of trust and its specific purpose. Advising on trustee duties is a rapidly growing area given the increasingly complex legal and regulatory framework to which trustees must adhere. Importantly, trustees are becoming increasingly aware of the advantages of acting early and seeking advice on their duties – particularly in situations of potential conflict or stress. Trustees are also making more use of the courts in asking for directions or in having "momentous decisions" blessed.

Developments, consolidations and regulation have means that effective risk management and mitigation has never been more important. Our advice is not a ‘one size fits all’ solution, but rather is based on an individual company’s specific business model. By building a partnership with you we add value by providing to trustees with a range of regulatory advice, administration support, products and services within a dedicated team approach, precedent development and on-going education and industry updates. Together with our multi-disciplinary risk and regulatory team, we advise on anti money laundering laws and the regulation of trust companies and can assist in the creation and improvement of straightforward operating procedures, including checklists, designed in conjunction with the needs of a trustee to ensure that all members of staff, no matter what their experience, can provide consistent and accurate back office services.

We work closely with trust and fiduciary businesses and their clients to build strong relationships based on trust, confidence and a deep understanding of their priorities and needs. We have an extensive range of experience in terms of particular products or service lines, including pensions and Shariah, and many of the team have worked in the other international off and onshore jurisdictions prominent in the world of wealth management. We have associated skills in dispute resolution, risk and regulatory, and image protection. We ensure that thought has been given to the composition of the team on every piece of work we do, and use our mix of skill and experience effectively.

The most common mistake that clients make when relocating is failing to take estate planning and tax advice well in advance of any move. There can be significant estate planning opportunities to be had and tax consequences to mitigate prior to any move and seeking advice early is key so that all existing wills, trusts, foundations and companies can be reviewed and any consolidation or new structuring put in place in good time. As well as being a beautiful, safe and peaceful places to live and work, Guernsey and Jersey have flexible trust and foundations legislation and are highly regulated jurisdictions with a well-established court system which makes it a popular choice for relocating clients.