Bermuda's Trustee Amendment Act 2014 (Amendment Act), effective 29 July 2014, amends the Trustee Act 1975 to provide statutory force to the Court's discretion to set aside a fiduciary's exercise of a power where the exercise of that power was flawed.
The Amendment Act largely adopts the rule in Hastings Bass as it was prior to the UK Supreme Court's decision last year in Futter v Futter and Pitt v Holt. It should be noted that the Amendment Act extends to all fiduciaries and is not restricted in application only to trust or trust property.
The Amendment Act, enacted shortly following statutory clarification and enhancement of Bermuda's settlor reserved powers regime, ensures that Bermuda remains a jurisdiction of choice for international clients.
For a detailed review of the legislation, please see our Brief.
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.