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TRUSTS: Do your homework

12 May 2017  

Nigel Sanders examines changes of trustees and protectors in contentious circumstances

Most modern trust instruments will contain provisions which grant certain individuals the power to effect a change of trustee or protector. It is well established in Jersey law that such a power is a fiduciary one: see Re Bird Charitable Trust [2008]. The legal principles as a matter of Jersey law that will apply to the exercise of these fiduciary powers of appointment of new trustees and protectors have been the subject of a number of Royal Court decisions. However, cases of particular note in recent times, in terms of the issues to be addressed when appointments are challenged, and the costs of those proceedings, were the Royal Court’s decisions in Representation of Jasmine Trustees Ltd [2015] and In the Matter of the Piedmont Trust and the Riviera Trust [2016]. The first decision provided useful guidance with regard to the test and approach that the court will apply when judging whether the exercise of a power of appointment was lawful. The second decision provided an analysis of the principles and considerations that are applied to the costs of any proceedings challenging such appointments.

Additional Info

  • Case(s) Referenced:

    Re Bird Charitable Trust and Bird Purpose Trust (Basel Trust Corp (Channel Islands Ltd v Anstalt) [2008] WTLR 1505 RC (Jersey)

    Re Buckton [1907] 2 Ch 406

    Re HHH Trust [2013] (1) JLR 135

    In the matter of the Representation of Jasmine Trustees Ltd [2015] JRC 196

    Mackinnon v Mackinnon [2010] JLR 508

    Re The JP Morgan 1998 Employee Trust [2013] (2) JLR 235

    In the Matter of the Piedmont Trust and the Riviera Trust [2016] JRC016