In doing so, Erin highlighted the main amendments proposed by the Trust and Trustees Bill 2022 (the Bill) from the perspective of a trust litigator and opened up a general discussion about whether or not the proposals made the Isle of Man more competitive.

In the week that the Bill goes for its second reading (25 October 2022), it might be helpful to recap what was considered to be the major talking points in the Bill, namely (and in very brief summary):

  • Amendment of the Trustee Act 2001:
    • Insertion of a new Part 1A: Duty to disclose trust information;
      • This proposed section seeks to codify the position set out in the Manx case of Schmidt v Rosewood and provides clarity as to who may apply for trust information, and when (and in relation to what circumstances) a trustee may refuse to provide trustee information;
    • Insertion of a new Part 3A: Power of trustee to contract with himself;
      • This section, if enacted, facilitates trustees contracting with themselves when acting as trustees of multiple trusts and effectively seeks to bring the law into line with the realities of the modern trust industry in this respect;
    • Insertion of a new Part 4A: Liability of trustees to third parties;
      • Where a trustee is entering into a transaction with a third party as a trustee, and has informed that third party in writing that it is transacting as a trustee, then the trustee’s liability is limited to the value of the trust property.
  • Amendment of the Trustee Act 1961: Insertion of a new section 55A: Power to declare exercise of a power voidable;
    • This seeks to enshrine what was previously referred to as ‘the rule in Hastings-Bass’ into statute thus providing clarity to the trust industry in the Isle of Man which has been lacking since the 2013 Supreme Court decision in Pitt v Holt.
    • It seeks to provide that the court may declare void or voidable a transfer or disposition where the trustee in exercising its power has failed to take relevant (and only relevant) factors into account and, but for that failure, the trustee would not have exercised the power in the way they did.
    • Crucially, this power is available whether or not the failure to consider relevant (and only relevant) factors resulted from a lack of care or other fault on the part of the trustee or an advisor to the trustee; effectively, no breach of duty is necessary.

Whilst the above is a very brief overview of the proposed provisions and does not seek to go into detail about how the sections work, we consider that if the Bill is passed, it should result in the Isle of Man remaining competitive in respect of its trust legislation.

Here is a link to the Bill: Trusts and Trustees Bill 2022.

Should you need any advice in relation to any aspect of Isle of Man trust law or, if it is enacted by Tynwald, the implications of the new Act, then please do not hesitate to contact Erin Trimble-Cregeen.

Key contacts

Erin Trimble-Cregeen

Counsel: Isle of Man, Jersey

T +44 (0)1624 647 914
E Email Erin

Twitter LinkedIn Email Save as PDF
More Publications
25 Jun 2024

Isle of Man VASP Developments

The Isle of Man Financial Services Authority (IOMFSA) has recently held three consultations relating...

19 Mar 2024

Guernsey retains its EU adequacy – as expected

The post-Brexit regulatory landscape continues to throw up challenges and jurisdictional arbitrage, ...

26 Feb 2024

Trusts: Non-intervention in the Isle of Man

The recent Isle of Man judgment of the Staff of Government Division (SGD) in the case of A and B v C...

4 Dec 2023

Isle of Man Trusts and Trustees Act 2023 Update

The much anticipated Trusts and Trustees Act 2023 received Royal Assent on the 18 July 2023, bringin...

18 Jul 2023

The 2023 Guide to Fintech for the Isle of Man

Appleby has provided the Isle of Man chapter to the ICLG Fintech 2023. The “International Comparat...

20 Mar 2023

Trusts: Comparison between the Crown Dependencies

Our Private Client and Trusts specialists in Guernsey, Isle of Man and Jersey outline some of the ke...

19 Jan 2023

The Edinburgh Reforms: An Offshore Perspective

On 9 December 2022, the UK Chancellor of the Exchequer announced a package of reforms to the UK fina...

15 Nov 2022

Insurance and reinsurance in the Isle of Man: Overview

A Q&A guide to insurance and reinsurance in the Isle of Man. Reproduced from Practical Law with the ...

3 Nov 2022

Significant Judgment for Isle of Man Fund Managers

A rethink of exclusion clauses in fund agreements may be needed after the Isle of Man’s appeal cou...

27 Sep 2022

Similar but Different

While the basic features of the trust remain, there are some notable differences in how trusts can b...