When things go wrong

Abstract

Legal arrangements carry their own risks. The courts and legislatures have had centuries to get trust law right, but when foundations were introduced in the Channel Islands and the Isle of Man around ten to twelve years ago, there was a chance to short-cut much of that incremental development, and to use much of the trust and company law experience. It was planned that foundations, in common law jurisdictions, would not be seen merely as trusts by another name. They were designed closely to resemble the civil law paradigm, in particular having legal personality, and the legislation made clear that they had different characteristics from trusts. This article looks at the effective oversight of foundations in the Isle of Man, drawing on experiences in Jersey.