considered to be a very remote risk), they are still able to utilise their own money to support themselves and their families, which isn't always the case if the donations are made to Charitable structures, for example.
Charitable structures
Those of our clients who have set up Charitable structures, have done so for different reasons, but some of the commonly cited reasons are:
1. These structures enable clients to give anonymously.
It is, for example, a trustee of a trust or a council of a foundation who make any donation and so clients remain at least one step removed from the actual donation;
2. These structures 'outlive' the clients;
Their wealth can therefore continue to be utilised to benefit their chosen charities after their demise with the trustee or council referring regularly to the clients detailed letter of wishes to ascertain whether they are using the funds in a way in which the client would have wished;
3. Foundations, in particular, allow clients to be actively involved during their life time with the structure and decisions taken and on their demise family members may step into their shoes, if so desired;
4. Charitable status can be obtained for these structures if they satisfy certain criteria and charitable status is attained locally (which is now possible following the implementation of the Charities (Jersey) Law 2014). If charitable status is granted, then certain benefits arise from that, including certain tax benefits and, also, it carries with it the opportunity to raise and accept donations from the public in furtherance of the specified charities or charitable purposes for which the structure was established, which is particularly desirable as it enables chosen charities to benefit from the funds within the structure over a longer period of time; and
5. Transferring wealth into a structure during a client's lifetime also has certain taxation benefits on a client's death, as the wealth transferred into the structure no longer forms part of their estate on death and that wealth is not subject to the usual Jersey stamp duty. This is desirable also because it means more of the wealth will be available for the benefit of the relevant charities or charitable purposes.
Charitable family structures Structures which can benefit both charities and families have been set up for all the reasons set out above for Charitable structures, save for point 4 under that heading. In addition, the wealth can be filtered down to the different generations within the family in amounts that will not potentially prevent or deter younger generations from living their lives for themselves without over reliance on the wealth within the structure.
There are also asset protection reasons for these types of Page 14 Beyond 20/20 - Philanthropy
The local charities benefitting from this client to date includes (and this is not an exhaustive list):
• Durrell Wildlife Conservation Trust • The National Trust for Jersey • Jersey Hospice Care • Blue Marine Foundation, a UK charity operating in Jersey and supporting the recovery of the island's marine life and local fishing communities
• Birds on the Edge, a project by Durrell Wildlife Conservation Trust, States of Jersey Department of Environment and the National Trust for Jersey, devoted to the restoration of bird and other animal and plant species on the island.
structures being established.
Real examples of our clients' giving locally We have the privilege of working with many ultra high net worth individuals and their families and it is interesting to 'sample' the ways in which a few of our clients (on a no names basis) provide to local charities and contribute to island life (other than through the taxes that they pay).
Client 1
This client relocated to the Island with a desire for privacy and to live the more senior years of life peacefully. From day one, this client made it clear that the intention was to contribute to Island life whilst alive, often mentioning that the aim was to 'give' the wealth away before death in order to see the results from such giving.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100
