US Private Wealth Network Podcast Series

Wealth is growing quickly, especially in the United States, and families are more international than ever. Their assets stretch across countries and include traditional investments, as well as alternatives, digital assets and impact investing. At the same time, family offices are expanding, women and rising generations are taking larger roles in decision making, and regulation is becoming more complex. All of this is driving demand for modern cross-border planning.

Families often live in multiple countries and need structures that work cleanly across borders. They rely on advisers and trustees who understand both the US environment and offshore jurisdictions, and who can administer trusts effectively in each. US trust law continues to evolve, and wealthy foreign families now view the US in the same way they view other non-US jurisdictions, comparing which one best fits their needs. US families are also looking outward and considering how a foreign jurisdiction can support their objectives.

The Uniform Trust Code (UTC) was adopted beginning in 2000 and now 38 states have adopted it fully or partly. This has sparked competition among states for out-of-state trust business.

The states often described as the ‘Big Five’ for trust work, including Wyoming, Delaware, South Dakota, New Hampshire and Nevada, updated and modernised their trust laws to increase flexibility and support economic growth. Wyoming adopted the UTC in 2003 and has since made more than 100 substantive changes.

Modern provisions include directed investment powers, the ability to appoint a distribution adviser, self-settled asset protection trusts, abolished or extended perpetuity periods, and flexible decanting and modification powers. States also borrowed concepts from the offshore world, such as trust protectors, purpose trusts and private trust companies. These tools can be combined to meet client goals without affecting the integrity of the trust. Specialist trust courts were created to support this development.

Many features now common in US trust law were introduced in Jersey decades earlier. Jersey offers a single, consistent legal framework, long-established trust law, and a globally respected judiciary. Its earlier adoption of modern trust concepts provides decades of case law and precedent. Jersey is also easier for international families to navigate than the US’s state-by-state patchwork and is widely viewed as neutral and internationally respected.

Jersey has its own legal system based on English common law principles. Its modern Trusts Law, introduced in 1984, predates most US statutes and has continually evolved to reflect global wealth dynamics. Jersey introduced perpetual trusts, directed powers, firewall provisions, private trust companies, non-charitable purpose trusts and self-settled spendthrift trusts long before US equivalents. The Royal Court of Jersey has deep expertise and efficient processes, and the Island has a highly skilled workforce in finance and private wealth services. These factors deliver stability and predictable outcomes for international families and advisers.

Jersey offers stability, predictability and neutrality, making it especially valuable for families with international assets. Its tax-neutral and internationally respected framework simplifies cross-border planning, while a strong legal infrastructure gives US advisers confidence when working with Jersey trustees. Jersey is also well suited to families seeking flexibility along with professional oversight through private trust companies.