Jersey's foundation law came into effect on Friday 17th July 2009 and a number of foundations have already been formed. Jersey offers a unique location for foundations being a "white list" jurisdiction and considerable interest has been expressed in migrating existing foundations to Jersey.
To date foundations have not been popular in common law jurisdictions. However, they offer a modern alternative to the use of traditional trusts in estate planning which increasingly involve assets located in both common law and civil law jurisdictions.
The ability to "participate" in the foundation and also the ability to "restrict" information provided to beneficiaries will be seen as attractive from the client perspective. This is particularly relevant in the current enviroment where the preservation of wealth for future generations is increasingly challenging against a rapidly changing family financial and fiscal landscape. For professional advisors, the challenge will often be to find a way in which foundations can be used without detrimental tax effects in the founders or beneficiaries jurisdiction of residence.
Further information is discussed in the attached briefing Jersey foundations