What is a Trust Administrator?

So you’re thinking about becoming a Trust Administrator but what does that involve? At Situations Recruitment Guernsey we’ve set out below some information about Trusts and the role of the Administrator in Guernsey.

If you are a Trust Administrator and are looking for a job in Guernsey visit Situations Recruitment’s Trust Administrator listings

What is a Trust?

Trusts and companies are entities which can own property, yachts, shares, currency, run any business and employ people, amongst many other things.

A trust is an arrangement whereby a capital fund is created and maintained independently from the person creating it. The trust can be formed and controlled outside the country of residence of the people ultimately interested in its funds. Trusts are extremely flexible and can satisfy almost all circumstances, including owning one or more companies. Trusts are frequently known as "settlements". This is because a settlement is the action of giving, and a trust is created by a settlor giving assets to a trust.

Trusts are set up by “Settlors”, like an owner. Companies are set up by “Beneficial Owners”. 

Guernsey is an “Offshore Tax Centre” like Jersey, Isle of Man, Cayman, Bermuda, etc., where tax is lower than on the mainland, so many people set up trusts and companies on the Island.

The Role of the Trust Administrator

So what does a Trust Administrator do?

Trusts and Companies are looked after or managed by local Trust and Company Administrators who are usually just referred to as "Trust Administrators". These Trust Administrators have frequent contact with their clients (the Settlors and Beneficial Owners) and carry out the clients' instructions, liaising with Banks, Lawyers, Investment Managers/Advisors and other "third parties" in the process. Each Trust Administrator looks after a number of different trusts and companies, which is called their "portfolio" of cases.

Types of Trust and Company

Some different types of Trust are

• Discretionary Trust - this is a Trust where the local Administrators have the discretion to carry out the owners' wishes as they see fit, but based on the owners' instructions. It is the most common type of trust managed in Guernsey and can be set up for a variety of purposes. There is often an underlying company involved in the structure
  Life Interest Trust - this is where, for example, a rich parent sets up a trust for their children to have life enjoyment of some/all of their money, but usually on a restricted basis, until they become a particular age.
• Employee Benefit Trust ("EBT") - this is a trust set up to manage a large pension, health or other staff benefit scheme for a company's staff, e.g. where a Bank offers a Pension Scheme to their staff
• Insurance Trust - this is set up to manage large insurance schemes
• Family Trust - this may be set up for a variety of purposes, and is owned or "settled" by a family group.
• Charitable Trust - this is set up to run and manage a charity, to save on the tax payable.

Some different types of Company are:

• Trading - this can be a normal business like a retail shop, or garage, etc. which carries out a trade
• Investment and/or Property Holding - these companies are set up to own a particular investment or group of investments, e.g. a property or several properties, or a yacht, or some stocks and shares, or a whole portfolio of stocks and shares, or some currency, etc, or a mixture of all of these
• Dormant/Asset Holding - similar to the above, in that the company doesn't "do" anything or trade in particular but is set up for the sole reason to own an asset, e.g. a property, a boat, etc., and its only income is the profit generated from that property, e.g. rent

What are the relevant qualifications to become a Trust Administrator?

Trust Administrators generally have to attain relevant qualifications in order to progress their career. The options for the first level of qualification are:

• STEP Foundation Certificate - stands for "Society of Trust & Estate Practitioners" and is quite specific to trust and company administration, with the Certificate being the first level before taking the STEP Diploma.
• ICSA Certificate - stands for "Institute of Chartered Secretaries & Administrators" and is broader than STEP, also being relevant to Fund Administrators and to general finance admin roles, with the Certificate being the first level before taking the full ICSA Diploma.
• IDFA — stands for "International Diploma in Financial Administration" and was formerly called CIFA (Certificate in International Finance Administration) and before that it was called the Guernsey Offshore Certificate in Trust & Company Administration. This is a separate qualification at the same level as the STEP Certificate and ICSA Certificate, but with no "Diploma" level associated with it.

These 3 qualifications are considered to be at the same level and comprise 4 or 5 modules, with the Administrator studying one module each school term by home study out of a book with an exam at the end of each module. Study weeks can also be included just before each exam. These Certificate level qualifications usually take between 18 months to 2 years to complete.

The next and usually final level qualifications are:

• STEP Diploma — takes 2-3 years
• ICSA Diploma — takes 2- 3 years

These 2 qualifications are considered to be at the same level, even though ICSA is broader than STEP. They are recognised worldwide.

It is usually the case that Trust Admin staff won't get beyond a certain level of employment, e.g. mid-level/early management, without having a relevant qualification, which is generally the STEP or ICSA Diploma (not just the Certificate).

Trust Administrator jobs available