Transfer of trusteeship often raises challenging issues for trustees. This paper explores the approach taken by courts in Bermuda and other jurisdictions in connection with the following issues and questions:

The consequences and remedies when a trustee’s appointment is invalid

Is the power to appoint trustees always a fiduciary power?

Improper exercise of the power to remove and appoint trustees

The tension between the outgoing trustee’s duty to transfer trust property and records verses its entitlement to security for its fees and liabilities.

When outgoing trustees may have personal liability for liabilities that exceed the value of the trust fund

The discussion paper uses a case study as a basis for exploration of the issues and to limit the scope of the paper. However, the intention is that, if need be, each part and section of the discussion paper may be referred to without having considered the case study in detail. Lists of cases with brief summaries, sections of legislation referred to and texts are provided at the end of the paper.

This is a rapidly developing area of the law and many cases turn on specific facts and differing judicial views. Accordingly, in each case, it is prudent to consider the specific facts and issues carefully and obtain advice as appropriate.





Twitter LinkedIn Email Save as PDF
More Publications
1 Sep 2021 |

Changes to rules on Permanent Residency Certificates

The Ministry of Labour has recently issued a policy paper, ‘Securing Permanency for Long-Term Resi...

26 Aug 2021 |

What to remember when an employee leaves

Just as when a new recruit is on-boarded, there are a variety of tasks an employer needs to deal wit...

23 Aug 2021 |

BMA seeks more seamless marketplace with ILS process enhancements

Recent changes made by the Bermuda Monetary Authority (BMA) to improve processes specific for catast...

17 Aug 2021 |

ILS Bermuda Executive Roundtable 2021

Despite the impacts of the Covid-19 pandemic and subsequent restrictions on travel and face-to-face ...

13 Aug 2021 |

A digital asset future: closer than we think

Most of us at some point in our lives have participated in a rewards programme either at our favouri...

26 Jul 2021 |

What not to forget when an employee leaves

There are many practical and ‘housekeeping’ matters that employers need to deal with when an emp...

Contributors: Jordan Knight
23 Jul 2021 |

Contributed surplus: it’s not capital!

Last week, in part one, we discussed the meaning of share premium, the various ways a company may us...

16 Jul 2021 |

Share premium: do you have it?

When the issuance of shares by a company is discussed, the first thought that comes to mind is the s...

2 Jul 2021 |

No question you’ll see more life reinsurers in Bermuda

While the emergence of property and casualty (P&C) startups in Bermuda is likely to be muted in ...

2 Jul 2021 |

Bermuda: An introduction to Dispute Resolution

This edition discusses Current Economic Conditions and Dispute Resolution Activity, Trends & Dev...

Contributors: Jordan Knight