Wills & Trusts Law Reports | Winter 2022 #189The late claimant was the settlor of eight family trusts of which Equity Trust (Jersey) Ltd was the original trustee. Two of the trusts, ZII and ZIII, both Jersey discretionary trusts, were relevant to the proceedings.
In 2006, Equity Trust retired as trustee and was replaced by Volaw Trustees Ltd. Equity Trust had the benefit of an indemnity. In 2008, a property crash led to the trusts becoming insolvent. In 2012, a company owned by ZII and in compulsory liquidation issued proceedings against its director and Equity Trust, which notified Volaw of its intention to rely on the inde...
Michael Norris outlines judicial guidance on the reasonableness of non-reliance clauses, and points to consider when attempting to limit a trustee’s liability to the assets of the trust ‘The judge at first instance concluded that while there might be arguments about which enquiry was the relevant one, there was a clear misrepresentation in relation to …
Continue reading "Non-reliance clauses: Draft with caution"
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The Jersey Royal Court’s recent refusal to ‘bless’ actions by the trustee shows that court approval cannot be taken for granted. James Sheedy sets out key points to consider ‘The trustee’s application for a blessing of its decision to liquidate the structure was refused on the basis (among others) that the trustee had not adequately …
Continue reading "Offshore: Count your blessings"
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The Privy Council has given welcome guidance on the rights of trustees of Jersey and Guernsey law trusts. Nick Robison reports ‘It will comfort beneficiaries (and settlors) knowing that assets settled into trust may not be attacked by a third-party creditor of the trustee, without consideration of the trustee’s role.’ On 23 April 2018, the …
Continue reading "Trustees: Who is liable?"
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John Greenfield and Elaine Gray outline recent Channel Island decisions on the personal liability of trustees ‘Under the Art 32(1)(a) regime, the trustee remains liable in law on the obligation and is the person against whom an action must be brought by the creditor.’ This article reviews a series of judgments delivered in 2014 and …
Continue reading "Trustees: Who pays?"
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Amanda Mochrie and Erin Trimble-Cregeen highlight how trustees can protect themselves from the consequences of an ‘insolvent’ trust ‘Trustees and their advisers would be well advised to review those trusts where they are a Guernsey trustee of a Jersey law trust and to consider changing the law of the trust.’ The recent judgment in the …
Continue reading "Trustees: Island exposure"
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