Guernsey approves trust law amendments, reinforcing its position as a jurisdiction of choice

Why these amendments matter

The approval of amendments to Guernsey’s trusts legislation marks an important moment for the island’s private wealth sector. Approved by the States of Deliberation on 20 May 2026, the changes modernise the Trusts (Guernsey) Law, 2007, align it with evolving market practice and reinforce Guernsey’s appeal in an increasingly competitive international landscape.

Guernsey’s latest reforms send exactly that message. Andréa Daley Taylor and Rachel Rushton from Ocorian’s Guernsey Private Client team examine several of the changes and what they mean in practice.

The key changes in focus

Reserved powers and fiduciary responsibility

One of the most significant changes highlighted is the adjustment to the treatment of reserved powers. Under the amendments, the default presumption is reversed so that powers held by certain non-trustee powerholders, such as protectors, will generally be treated as fiduciary unless the trust instrument provides otherwise. In practical terms, this raises the standard of responsibility attached to those roles and reinforces the principle that decisions should be taken in the interests of beneficiaries, rather than in the interests of the powerholder. It also supports recent case law indicating that protectors hold wider fiduciary powers, unless expressly stated otherwise, rather than just a power of veto. For families and advisers, this creates greater clarity around accountability and underscores the value of experienced, professional fiduciaries in key governance roles.

The amendments also provide greater comfort around reserved powers more broadly. For some settlors and family principals, the ability to retain a degree of influence over certain strategic decisions remains an important consideration when establishing a trust structure. Guernsey’s reforms help clarify that these mechanisms can operate within a secure legal framework without undermining the integrity of the trust itself. That balance is important: it allows for thoughtful family involvement while preserving the discretionary role of the trustee and ensuring the structure remains robust.

Protection of deliberations

Another notable development concerns the protection of deliberations. The law already protected trustees from having to disclose the reasoning behind their decision-making in certain circumstances. The amendments extend similar protection to other fiduciary powerholders, including protectors and enforcers, further highlighting the fiduciary nature of these roles. This is a valuable clarification. It supports careful and independent decision-making, helps preserve the integrity of fiduciary processes and ensures that those exercising their powers in relation to important trust decisions can do so without unnecessary pressure to reveal every stage of their internal deliberations.

Perpetuity and long-term planning

The changes relating to perpetuity are also significant, particularly for families planning across multiple generations. Greater clarity around how older perpetuity provisions should be treated, and the court’s ability to assist where relevant, gives trustees and advisers more certainty when managing long-term structures. For dynastic families and those focused on orderly succession planning, that added clarity, supports better forward planning and reduces the risk of avoidable structural complications for long-standing trusts.

Why Guernsey remains a jurisdiction of choice

These updated provisions, amongst others, strengthen the case for Guernsey as a jurisdiction of choice. They show a jurisdiction that is not standing still but continually reviewing its framework to ensure it remains relevant, credible and competitive.

They also reinforce many of the qualities that have long made Guernsey attractive to private clients and their advisers: a mature trust environment, a respected and independent judicial system, strong regulation, and a legislative framework that supports sophisticated structuring without sacrificing stability.

What this means for private clients and advisers

For private clients, the message is straightforward. These reforms enhance legal clarity, support better governance and provide greater certainty for long-term planning.

For professional trustees and advisers, they offer a clearer platform from which to guide families through increasingly complex wealth, succession and governance issues.

And for Guernsey itself, the approval of these amendments is a timely reminder that the island’s success rests not only on its established reputation, but on its willingness to adapt and strengthen its offering for the future. For more information and to discuss these recent trust law amendments, reach out to the team.