High net worth individuals (HNWIs) and families are increasingly seeking to protect their global assets through trusts, foundations and other entities, for the benefit of future generations. Philanthropy is also a growing trend.
Multi-asset structuring across countries
An ultra high net worth individual (UHNWI) in the United Arab Emirates (UAE) appointed SANNE to structure his affairs for succession planning purposes. His assets spanned many different jurisdictions and consisted of real estate, private equity stakes and financial assets. This required SANNE to liaise with advisers in the various countries to ensure that every angle was covered ahead of structuring. Keen to retain an element of control, the client opted for a private trust company (PTC), owned by a foundation, with a number of his trusted advisers acting as council members of the foundation and directors of the PTC alongside a SANNE representative.
Family office for South African family
An UHNW family living in South Africa opted to establish a family office in Jersey a few years ago. They chose Jersey for its robust regulation, highly qualified workforce, reputation as the pre-eminent offshore centre and ease of access from the UK. The family business spans across more than a dozen African countries and it was important that the proceeds of that business were invested in a stable, low risk environment with a wealth manager who understood their environment. Standard Bank is the family’s primary wealth manager and supports the client’s business requirements.
Family office structure for high profile clients
Crestbridge has created a substantial family office structure involving numerous Jersey trusts, a number of PTCs and overlying purpose trusts, property and asset holding vehicles and an operating company. The structure, for a high profile Middle Eastern family, was established to give oversight of the family’s overseas assets and for estate planning purposes. Holding real estate around the world and significant investment portfolios/private equity investment, the family office structure requires Crestbridge to administer structures in multiple jurisdictions. It is currently valued at more than US$2 billion.
Will trust for executors in Hong Kong
Walkers was instructed to provide Jersey legal advice by the executors of a wealthy businesswoman who died in Hong Kong. The executors wished to remain involved with the administration of the estate assets over the long term, since the beneficiaries themselves were still very young. Walkers therefore advised and assisted with the establishment of a PTC structure. The PTC acted as trustee of a new Jersey discretionary trust, and by doing so this enabled the executors, acting as directors of the PTC, to fulfil their objective.
Drivers for wealth management
- Wealth protection
- Succession planning
- Diversification into non-domestic assets
- Family office arrangements
- Remediation of poor planning
- Death of a family member
- Consolidation of non-domestic assets
- Flight from conflict
- Joint venture arrangements
- Marriage breakdown
- Shariah compliancy
Managing overseas funds of South African clients
South African resident private clients, seeking a stable jurisdiction that understands the African market, were referred to Nedgroup Trust (Jersey) Limited by their wealth managers and professional advisers. The trust company has been assisting them with their estate and succession planning needs for funds that they hold outside South Africa, using exchange control allowances.
Trust for UHNW Asian family
Ocorian established a trust for an UHNW family in the Far East, with underlying investment companies investing into the UK commercial property market. Jersey was seen as a secure, reputable location with a strong track record for this type of structuring. Ocorian worked with a number of professional advisers in the UK and Hong Kong, as well as local banks, to establish an investment approach that takes into account both the trust investment policy and the matriarch’s wider wishes.
Private Trust Companies for Saudi families
JTC recently established two PTCs for families in Saudi Arabia and has a long tradition of advising Middle Eastern clients. These structures are very much in vogue in the Middle East for the wealthiest families, as they can provide for a high degree of control and participation by family members. Typically, succession planning is at the forefront of the families’ minds when establishing these structures. Jersey is regarded as an inherently stable jurisdiction in which to hold wealth and it has an enviable record in the management of trust structures. Structures for wealthy Indian clients Minerva acts for a number of Indian resident HNW individuals who have trusts or Jersey companies holding assets, such as UK real estate and investment portfolios. These structures have been funded using the Liberalised Remittance Scheme in India, which allows Indian residents to remit certain amounts outside India each year. Other UHNW individuals in India have set up structures with Minerva as part of their move of residence from India to the UK. These structures in some cases also own significant stakes in their businesses in India.
Shariah-compliant unit trust for Middle Eastern entrepreneur
A prominent Middle Eastern entrepreneur with a multi-faceted global business, and who was considering placing his various business and personal assets into a structure for the first time, chose Jersey as the base for the entities. Key drivers were the strength in depth of the pool of service providers on the Island, the reputation of the courts for excellence and the rigour of Jersey’s regulatory regime. The client appointed Ogier and chose to put a Shariah-compliant unit trust at the heart of the structure.
HNW African appoints Jersey trustee
A HNW individual from Africa appointed Estera Trust (Jersey) Limited as trustee of a trust holding the shares in his company, which is involved in the purchase and sale of products on a global scale. Given the volatility in the client’s home country, the use of a secure, established and well-regulated jurisdiction in which to establish a trust for both succession planning and asset protection was of paramount importance to the client. Jersey was the jurisdiction of choice.
Estate planning for Hong Kong business owner
Hawksford is working closely with Hong Kong advisers and their clients to assist with estate planning solutions for next generation families living in the US. This involves the use of the Jersey revocable Reserved Powers Trust (RPT), allowing the non-US grantor to make incomplete gifts of their Jersey or BVI Holding Company shares (holding non-US assets) to foreign trusts for efficient US compliant succession planning. The RPT direction allows the non-US grantor or their appointed delegate to reserve powers over investments.
Jersey law trusts for Asian family
Carey Olsen acted for a Jersey-resident trustee of three dynastic Jersey law trusts established for an Asian family. The trusts between them owned 90% of the issued share capital of a Singaporean company which, in turn, owned various successful underlying trading businesses in the region. The remaining 10% of the shares in the company was owned directly by the family. The company’s shares were listed on the Singaporean stock exchange and the cash proceeds were then received into each trust and redeployed for other long-term investments or distributed to certain members of the family for their immediate benefit.
Chinese wealth management company chooses Jersey
Driven by increasing levels of overseas investment by Chinese HNWIs, Noah Wealth Management, a private wealth manager from mainland China, recently set up a managed trust company in Jersey. It was established by JTC and was the first ever managed trust company in Jersey for a mainland Chinese institution. Noah is now able to offer Jersey trust structuring solutions to its client base of over 100,000 through its subsidiary Ark Trust (Jersey) Limited, with JTC providing ongoing administration services and any trusts for which it acts as trustee. Noah has around US$15 billion of assets under management.