Global Trusts Update: Key Trends and Developments in 2024

Date: 06 Nov 2024

Karen Jones

Trust law and regulation have seen substantial updates across jurisdictions as countries adapt to international tax standards, transparency mandates, and evolving demands from high-net-worth individuals. Below is a summary of recent key developments in several leading trust jurisdictions, highlighting regulatory, tax, and legislative changes that shape wealth structuring and management.

United Kingdom

Oliver Sharp, Associate at law firm, Simkins: “The UK’s Autumn Budget included significant tax changes for non-UK domiciled individuals and proposed an inheritance tax (IHT) system based on residence. Effective from April 2025, these measures, alongside impending restrictions on Business Property Relief (BPR) and Agricultural Property Relief (APR) starting in 2026, will impact tax planning for trustees. This shift necessitates a review of trust arrangements that currently utilize these reliefs, especially with consultation expected in early 2025.”

Guernsey

Catherine Moore, Partner, Ogier: “Recent years have brought modernization to Guernsey’s fiduciary regulation, introducing frameworks to align with global standards. New legislation covers AML/CFT compliance and mandates certain registrations or licenses for trustees involved with international charities or those that collect public donations. Additionally, new finance and consumer protection laws address virtual assets and crowd-funding, reflecting Guernsey’s proactive stance on regulatory compliance.”

Wayne Bulpitt CBE, Chair, Beauvoir Group: “Guernsey’s Private Trust Foundations (PTFs) have gained traction, offering governance mechanisms well-suited for high-net-worth families and joint ventures. PTFs support multi-generational wealth structures by adapting to changing family or business needs, providing added flexibility in trust administration.”

Jersey

Sarah Bartram–Lora Reina, trustee at Stonehage Fleming and president of Jersey Association of Trust Companies (JATCo): “2024 marks the 40th anniversary of Jersey’s Trust Law, with amendments underway to address priority claims in insolvent trusts and allow beneficiaries to terminate or vary trusts following recent case law. Additionally, Jersey’s Draft Multinational Taxation (Global Anti-Base Erosion – IIR Tax) Law and the Draft Multinational Corporate Income Tax Law, aligning with OECD standards, will affect multinational entities with over EUR 750 million in revenue from 2025 onward.”

Monaco

William Easun, Managing Partner, Tempest Legal Services Monaco SARL: “Monaco’s 1936 trust law, adapted to accommodate the country’s international population, is supported by Law 214, which recognizes foreign trusts within the principality. While Monaco does not maintain a local body of trust law, the mechanism allows foreign trusts to function within Monaco’s jurisdiction, especially for nationals who wish to avoid forced heirship laws.”

Cyprus

Elias Neocleous, Managing Partner, Elias Neocleous & Co: “Cyprus continues to enhance its trust framework, aligning with EU standards for transparency and AML compliance. Its Cyprus International Trust (CIT) remains competitive due to flexible, tax-efficient structures that appeal to international clients, solidifying Cyprus’s standing in the European trust landscape.”

Marina Zevedeou, CEO, Aspen Trust Group agrees with Neocleous: “Cyprus has reformed its Trust laws to enhance transparency and align with international standards. Having set up the Cyprus Trusts Beneficial Ownership Registry (CyTBOR), this ensures compliance with European Anti-Money Laundering Directives, while the Cyprus International Trusts Law offers greater flexibility, tax neutrality, asset protection and confidentiality. These features, combined with a favorable legal framework and access to a wide network of double tax treaties, significantly reinforce Cyprus’s appeal for wealth structuring and management.”

Asia

Singapore

Edmund Leow S.C., Senior Partner, Dentons Rodyk & Davidson LLP: “The Inland Revenue Authority of Singapore (IRAS) has tightened the conditions for issuing a Certificate of Residence (COR) for Singapore companies, particularly for holding companies owned by non-residents. Previously, CORs enabled companies to access benefits under double tax treaties. IRAS now mandates that these entities have substantial presence in Singapore, aiming to prevent abuse of tax treaties by shell companies and uphold Singapore’s reputation as a robust, compliant global financial center.”

Hong Kong

James Russell, Managing Director, Zedra “Hong Kong is bolstering its status as a family office hub, supported by a 0% concessionary profits tax rate for single-family office structures. Positioned as a gateway to China, Hong Kong is leveraging its strategic location to attract global family offices, competing closely with Singapore for regional dominance in wealth management. I think Hong Kong’s position as China gateway will continue to lead it to specialise in business where there’s a China nexus.”

United States

Joshua Rubenstein, Partner, National Chair, Private Wealth: “Several U.S. states have adopted progressive trust legislation, often emulating offshore centers by removing traditional constraints like the rule against perpetuities and the Statute of Elizabeth and eliminating state income taxes for certain trusts. Delaware led this movement with balanced legislation and dedicated trust courts, followed by states like South Dakota and New Hampshire. In contrast, states such as Nevada and Wyoming enacted more aggressive laws, allowing greater control to grantors, but without the court history or specialized judicial oversight that more established jurisdictions provide. The future may reveal challenges to the powers these new trust laws offer.”

Andy Morgan, Group CEO, Affinity Group: “With looming changes to U.S. tax policy and increasing tax liabilities for ultra-high-net-worth individuals, South Dakota has become a sought-after trust jurisdiction. Known for its Dynasty Trusts, Spousal Lifetime Access Trusts (SLATs), and lack of state income tax, South Dakota offers robust asset protection. Additionally, the state’s laws allow trusts to exist indefinitely, supporting multi-generational wealth preservation. Affinity Group has recently expanded operations to the U.S., opening offices in South Florida and South Dakota to better serve clients interested in tax-efficient, flexible trust structures.”

Caribbean

British Virgin Islands

Christopher McKenzie, Partner, O’Neal Webster (UK) LLP: “The BVI has amended its Trustee Act to address the recommendations from the Caribbean Financial Action Task Force, including stricter beneficial ownership transparency requirements. Trustees are now obliged to maintain updated, accurate records on beneficial ownership and face penalties for non-compliance. These updates, along with amendments to the BVI Business Companies Act, demonstrate BVI’s commitment to international regulatory standards.”

Cayman

Robert Mack, Partner at law firm HSM Group; “The Beneficial Ownership Transparency Act 2023, effective from 31 July 2024, requires Cayman Islands entities to maintain, verify, and monthly report their beneficial ownership details. This expands prior requirements, now covering limited partnerships, private trust companies, and foundation companies. Trusts remain out of scope, yet entities within trust structures may still require compliance. Trustees and directors must review ownership and control structures closely, particularly for entities with complex ownership arrangements, to ensure compliance by the enforcement date, 1 January 2025.”

Conclusion

Global trust law remains dynamic, with jurisdictions adapting to new regulatory standards, tax implications, and evolving client needs. As governments reinforce transparency and AML compliance, they also balance this with structures that allow for flexibility in wealth preservation. Trustees, wealth managers, and high-net-worth families should stay abreast of these developments to ensure their structures remain compliant, resilient, and aligned with their legacy goals.

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