Appleby is one of the world’s leading offshore law firms, operating in 10 highly regarded and well-regulated locations. We provide comprehensive, expert advice and services across a number of key practice areas. We work with our clients to achieve practical solutions whether from a single location or across multiple jurisdictions.
In a recent judgement re the Z Trusts [2015] JRC196C from the Royal Court of Jersey it was held that the test for an insolvent trust is a cash flow test, rather than a balance sheet test.
In a recent judgement re the Z Trusts [2015] JRC196C from the
Royal Court of Jersey it was held that the test for an insolvent
trust is a cash flow test, rather than a balance sheet test. Once
an insolvency, or probable insolvency, arises, the trustee or other
persons holding fiduciary powers can only exercise those powers in
the interests of the creditors. This a significant case as there is
little authority on insolvency trusts.
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.
