Guernsey: Offshore Trusts Guide
Legal Framework and Formation Rules and Fees
The Guernsey law of trusts was codified in 1989 along broadly Anglo-Saxon lines in the Trusts (Guernsey) Law 1989, since updated by the Trusts (Guernsey) Law 2007. On the whole it gives extra protection to beneficiaries. This law does not apply directly in Alderney or Sark, but has a substantial influence on trusts in those jurisdictions.
Trust documents are in English. There are no registration requirements for trusts, no fees are payable on formation, and there are no annual reporting requirements other than for resident trusts (ie those with resident beneficiaries). Trust accounts must be kept but there is no audit requirement.
The maximum perpetuity for Guernsey trusts was 100 years, although the introduction of the new legislation in 2007 changed this (see below). The law provides for non-recognition of foreign judgements, and forced heirship provisions in foreign law can be over-ridden.