Project Update
The demand for foundations in Guernsey seems to arise from a need for structures that can be used in similar circumstances to traditional family trusts, but are familiar to clients and intermediaries with a civil law background.
Foundations have existed in Europe since at least 1926. They were introduced to provide a civil law equivalent of common law trusts. Since the 1990s a number of common law jurisdictions, such as the Bahamas and Jersey, have introduced foundations legislation.
Foundations, unlike trusts, are distinct legal entities, which have no shareholders, and in accordance with Guernsey's legal tradition will be entered into a public register administered by the Registry.
In December 2006, the States of Guernsey approved a States Report prepared by the Commerce and Employment Department regarding a review of Trust Law in Guernsey. This included the proposal for the introduction of Foundations. The Commerce and Employment Department, working with the Law Officers Chambers, prepared draft legislation for consultation, which closed on 23 May 2011.
The department is now considering these responses in finalising the draft legislation to be put before the States.
Document downloads
Foundations
Consultation document
Additional information
Review of Trust Law in Guernsey - 2006
