Jersey’s legal system has demonstrated remarkable flexibility in facilitating the consolidation of charitable trusts through bespoke primary legislation. The recent Westaway Trust (Transfer of Assets) Law 202- provides a compelling case study in how the jurisdiction enables efficient legal solutions for highly specific scenarios while maintaining rigorous legal safeguards.

The Act, passed by the States Assembly earlier this year, was designed for a singular purpose: to transfer assets from the historic Westaway Trust to the Le Don de Faye fund while comprehensively addressing the dissolution of the former and the management of any residual obligations. This targeted legislative approach highlights Jersey’s ability to balance respect for historical charitable intentions with modern administrative efficiency within its established legal framework.

A Strategic Merger of Charitable Funds

The Westaway Trust, established under 1930 legislation, had become increasingly ineffective due to its small asset base and restrictive distribution criteria. Its two component funds – the Pauvres Honteux Fund for parish relief and the Écoles Élémentaires Fund for children’s clothing – were struggling to generate meaningful impact from their limited capital.

The solution emerged through consolidation with the broader-based Le Don de Faye fund, established in 1959. This larger fund already operated with similar charitable objectives under Jersey’s modern trust law framework but benefited from greater flexibility in beneficiary selection and more efficient administration. The merger was structured to preserve both funds’ tax-exempt status under Article 115 of Jersey’s Income Tax Law, avoiding unintended tax consequences.

Legislative Efficiency in Action

What makes this transaction particularly noteworthy is the legislative mechanism employed. Rather than pursuing a ministerial order or navigating complex trust restructurings requiring Royal Court approval under cy-près doctrine, Jersey’s government opted for primary legislation through the States Assembly. This approach provided several distinct advantages:

1. It established absolute legal certainty regarding the transfer of assets while respecting Jersey’s customary law principles

2. It completely wound up the original trust structure without residual obligations, with any remaining assets subject to bona vacantia provisions

3. It avoided the need for ongoing dual administration while maintaining Jersey Financial Services Commission oversight

4. It pre-empted potential beneficiary challenges by clearly serving the public interest in efficient charitable administration

This method stands in contrast to approaches taken in many other jurisdictions, where similar trust consolidations might require court approvals or complex scheme arrangements. Jersey’s ability to enact precise, bespoke primary legislation for such transactions demonstrates the jurisdiction’s legal pragmatism while operating within its established trust law framework.

Implications for Charitable Governance

The consolidation represents more than just administrative convenience. By combining the funds under Jersey’s modern Trusts (Jersey) Law 1984, trustees can now:

- Achieve better investment returns through pooled assets while maintaining regulatory compliance

- Reduce administrative overheads under the Jersey Financial Services Commission’s oversight

- Apply charitable distributions more flexibly to meet contemporary needs while honouring original donor intent

The transaction preserves the original philanthropic intent while ensuring the funds remain effective in modern Jersey society. It demonstrates how historic charitable structures can be adapted to remain relevant without compromising their essential purpose, subject to Jersey’s robust legal protections for charitable assets.

A Model for Other Jurisdictions?

While Jersey’s legislative flexibility may be difficult to replicate in larger jurisdictions with more rigid constitutional frameworks, the Westaway Trust consolidation offers valuable insights. It shows how targeted primary legislation can:

- Resolve specific legacy issues efficiently while respecting established legal principles

- Modernise charitable structures without lengthy court processes

- Maintain public confidence in historic endowments through transparent legislative action

For trustees of similar legacy funds, the case highlights the importance of regularly reviewing governance structures and being open to innovative legislative solutions when existing arrangements become outdated, while always ensuring compliance with contemporary trust law requirements.



As Jersey continues to evolve its legal framework, this example of single-transaction primary legislation may well inspire similar approaches to solving discrete legal challenges in both charitable and commercial contexts, demonstrating how small jurisdictions can leverage their legislative agility while maintaining robust legal protections.