Standard Bank Offshore Trust Company Jersey Limited (SBOTCJL) was introduced to the patriarch of an East African family who wished to protect the interests of the women in his immediate family. The challenge was to:
- establish a suitable estate and succession planning structure to hold Islamic asset classes and follow the Shari’a
inheritance principles;
- ensure that the settlor and his sons have the power to make decisions relating to the management of the Islamic assets;
- and provide the opportunity for beneficiaries to fairly receive income and capital while providing robust accounting and maintenance of the trust records, in spite of the large number of beneficiaries.
Benefiting from Jersey’s modern and sophisticated trust legislation, SBOTCJL, as trustee and administrator, established a reserved powers trust, with the settlor retaining the power to direct investments. The power would eventually pass to his
sons who were appointed as the trust’s protectors.
An independent power holder was also appointed to hold a casting vote on decisions should the protectors be unable to agree matters.
The settlor has provided SBOTCJL with a letter of wishes to guide them as much as possible in relation to the distribution of income and capital as per the Shari’a principles.
Assets, in this instance, are invested within Shari’a-compliant investments offered by Melville Douglas International and the trust is banked with Standard Bank Offshore – Jersey.
Subject to the discretion of the trustee, a distribution waterfall mechanism has been implemented which allows beneficiaries to put through distribution requests (such as Zakat obligation or general welfare) and which the trustees can follow in accordance with the Shari’a principles.
The family has benefitted from SBOTCJL’s fiduciary services and Standard Bank Offshore’s Shari’a-compliant investment solutions.
