As set out in Foundation Series Paper 3, trusts are set up for a number of reasons including:

It is therefore unsurprising that the validity and effectiveness of trust arrangements can come under attack from the likes of revenue authorities, creditors, former spouses and disgruntled beneficiaries and heirs. The potential for trust litigation can arise in many different guises, but those establishing or administering trusts may benefit from an awareness of the following commonly litigated areas and issues:

Trustees who find themselves embroiled in litigation face the potential for incurring significant financial liabilities. To minimise the risks, in addition to ensuring diligent administration, trustees should:

  • ensure that they have clear instructions;
  • take appropriate legal advice regarding the drafting of trust documentation including, from trustees’ perspective, advice regarding remuneration and exculpation clauses;
  • take legal advice from the settlor’s jurisdiction.

Notwithstanding all care trustees take, they can still find themselves involved in litigation. In such circumstances trustees should act swiftly and take appropriate advice on, for example, whether to take an active or neutral role in the litigation and whether it is appropriate to apply to the court for a Beddoes or prospective costs order. In the later papers of this Trustee Knowledge Series, we will look at some of these areas of trust litigation with reference to cases.

For more specific advice on trusts in Jersey, we invite you to contact Giles Corbin or Nichola Aldridge.

Twitter LinkedIn Email Save as PDF
More Publications
1 Feb 2024

2024 Technology & Innovation Guide

As the pace of technological change accelerates, so too does the legal and regulatory landscape. The...

1 Oct 2023

Guide to companies in Jersey

An overview of the types of companies available in the Island of Jersey, the method of formation and...

1 Feb 2023

Registration of banks in Jersey

A summary guide of the laws and procedures relating to the registration of Banks within Jersey - a j...

19 Aug 2022

Establishing a business in Jersey

If you wish to set up a new business in Jersey, a number of general legal issues need to be addresse...

1 Feb 2022

Technology and Innovation Guide – Jersey

As the pace of technological change accelerates, so too does the legal and regulatory landscape. The...

1 Feb 2022

Appleby Offshore Data Protection Guide 2023

With data protection laws in more than 120 countries around the world, personal data is now viewed a...

15 Jul 2021

Trustee Knowledge Series: Advanced Paper Two: Appointment to Beneficiaries

Part of our series of Trustee Knowledge Papers, set out to be a useful reference guide for all level...

22 Jun 2021

Cell companies in Jersey

This Guide explains the concept of the Jersey cell company which is governed by Part 18D of the Comp...

9 Jun 2021

Trustee Knowledge Series: Advanced Paper One: Adding and Excluding Beneficiaries

During the next twelve months, Appleby's Private Client & Trusts team will author and distribute a s...