In a recent decision of 23 September 2015, in the matter of the
Piedmont Trust and in the matter of the Riviera Trust [2015] JRC
196, the Royal Court in Jersey examined the extent of the duties of
a person exercising a power to appoint trustees and protectors of a
trust, which powers were accepted by the parties and the court to
be fiduciary in nature.
The court was required to consider whether the alleged conflict of
interest of the persons appointed as new protectors was such as to
invalidate their appointment.
The court decided to set aside the appointments of a new trustee
and protectors on the basis that the persons exercising those
powers had acted irrationally and taken irrelevant factors into
account.
The case demonstrated that it is important for the trustee in
office to carry out due diligence on the person(s) appointed and
the circumstances of the appointment. If necessary, a trustee
should seek clarification from the court where there are doubts as
to whether or not the protector has complied with his duties.
Please click here to review our judgment summary.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.