Duration, Revocation and Termination

Question 1

Q1. What is the historical challenge regarding long-lasting trusts in most legal systems?

Answer 1

A1. Property owners often want to control property far into the future (even after death). Various rules developed (e.g., English rules against perpetuities) to limit how long interests can remain unvested or income can accumulate.

Question 2

Q2. Did Jersey historically have a rule against perpetuities?

Answer 2

A2. Yes, despite earlier doubts. Re Equiom Trust (C.I.) Ltd (Mattas) confirms a perpetuity rule exists in Jersey customary law, though modern statute law (Article 15) now largely displaces it.

Question 3

Q3. Under Article 15(1) of the Trusts (Jersey) Law, how long can a trust last by default?

Answer 3

A3. Indefinitely (no maximum), unless the trust’s own terms provide otherwise.

Question 4

Q4. What does Article 15(2) say about perpetuities and accumulation rules for Jersey trusts?

Answer 4

A4. It abolishes any rule against perpetuities or excessive accumulations. No forced deadline for vesting or for stopping the accumulation of income.

Question 5

Q5. If a trust has a fixed end date, can trust assets be appointed out into another trust with a longer or no end date?

Answer 5

A5. Yes. Article 15(3) says a valid appointment into another trust may continue beyond the first trust’s end date, effectively extending the beneficial interests.

Question 6

Q6. Can a Jersey trust be revoked?

Answer 6

A6. Yes, but only if the trust’s terms explicitly reserve a power of revocation. By default, a Jersey trust is not presumed irrevocable.

Question 7

Q7. If a trust is wholly revoked, who gets the trust property?

Answer 7

A7. It reverts to the settlor absolutely. If only partly revoked, the relevant portion reverts to whoever contributed that portion.

Question 8

Q8. Can a power of revocation itself be set aside for mistake?

Answer 8

A8. Yes. It’s a beneficial power of the settlor, but under Re the Piedmont and Riviera Trusts, it can still be invalidated if exercised under a serious mistake (Article 47G).

Question 9

Q9. In what two main ways can a trust “terminate”?

Answer 9

A9.
All assets are distributed or used up, leaving nothing.
The trust reaches a set termination date (or a statutory limit), or the trustees use a power to end it.

Question 10

Q10. On termination, what must trustees do under Article 43(1)?

Answer 10

A10. They must distribute the trust property “within a reasonable time” to those entitled under the trust’s terms.

Question 11

Q11. How does Article 43(3) incorporate Saunders v Vautier?

Answer 11

A11. If all beneficiaries are adult, ascertained, and have capacity, they can require the trustee to wind up the trust and distribute assets immediately, even if the trust deed says otherwise.

Question 12

Q12. What if one beneficiary cannot or will not agree to early termination?

Answer 12

A12. Then the trust cannot be forced to end under this provision. All must agree (and must be capable).

Question 13

Q13. Does the court have power to override or direct distributions differently on termination?

Answer 13

A13. Yes. The court may:
Require trustees to distribute,
Direct them not to distribute,
Make any other order it deems just.

Question 14

Q14. Summarize the modern rules on a Jersey trust’s duration and end.

Answer 14

A14.
Trusts can last forever unless terms set a limit.
No perpetuity or accumulation rule applies under Article 15.
Trusts end by running out of assets, hitting a termination date, or revocation (if reserved).
Beneficiaries can force an early end under Article 43(3) if all are adult and capable.
The court can intervene to protect interests or clarify distributions.