Offshore

Cayman Islands court considers legal test for mental capacity in exercise of a legal power

The Grand Court of the Cayman Islands recently confirmed In the Matter of the O Trust (23 February 2018) that the legal test for establishing mental capacity for the exercise of an impugned legal power, in this case a reserved … Continue reading

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Filed under Mental capacity, Offshore

Royal Court of Jersey applies Hastings-Bass provisions in relation to incorrect tax advice

We have previously reported on two provisions of the Trusts (Jersey) Law 1984, Articles 47H and 47G, which had been introduced following the UK Supreme Court’s judgment in Pitt v Holt [2013] UKSC 26 (see our previous post here).  That … Continue reading

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Filed under Offshore

Transfer into Guernsey trusts set aside on grounds of mistake despite the fact the transfer was made solely to reduce tax

The Guernsey Royal Court recently ordered, under s. 69(1)(a)(iv) of the Trusts (Guernsey) Law 2007 (the “Act“), that a transfer of shares into Guernsey trusts be set aside on grounds of mistake. This was despite the fact that the transfer … Continue reading

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Filed under Offshore, Trust disputes

IN THE MATTER OF THE A LIMITED FURBS AND THE B EBT [2017] 21/2017

Summary The recent case of A Limited FURBS decided in the Guernsey Royal Court provides helpful clarification on the question often faced by offshore trustees about whether to submit to the jurisdiction of a foreign court in overseas legal proceedings. … Continue reading

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Filed under Offshore, Private wealth and trusts, Trust disputes

Cayman courts emphasise the importance of Beddoe relief and its availability in situations where a third party claim is for an amount greater than the Trust assets.

In the case of X (as Trustee of the A Trust) v Y (beneficiary of the A Trust)[1], the court reiterated the importance for Trustees of seeking Beddoe relief before commencing or defending an action. Obtaining Beddoe relief ensures that … Continue reading

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Filed under Offshore, Private wealth and trusts, Trust disputes

Is a register of beneficial ownership of companies coming?

As part of the global transparency push, the G20 has committed to implement rules requiring the disclosure of beneficial ownership of legal entities (in addition to automatic exchange of financial account information and the BEPS related transparency measures). On 13 … Continue reading

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Filed under Australia, Offshore, Private wealth and trusts

OUTGOING TRUSTEE HAD NO RIGHT TO RETAIN TRUST ASSETS OR RECEIVE A CONTRACTUAL INDEMNITY FROM THE SUCCESSOR TRUSTEE

The Supreme Court of Bermuda has held that a trustee has no general right to retain trust assets to meet its potential liabilities when a successor trustee is appointed. The Court also held that a former trustee has no general … Continue reading

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Filed under Offshore, Trust disputes, Uncategorized

BVI Court of Appeal Comment on Trustees’ Duty to Account and Evidential Presumptions in Trusts

The BVI Court of Appeal has recently allowed an appeal concerning a trustee's failure to account and breach of trust.[1] The breach of trust arose as a result of the trustee making an appointment of the trust assets without considering … Continue reading

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Filed under Offshore, Trust disputes

Jersey Court gives directions to trust company under the Foundations (Jersey) Law 2009

The Royal Court of Jersey has recently heard the second application under the Foundations (Jersey) Law 2009 (the “Foundations Law”). The Application was from a trust company in its capacity as the sole council member of a set of foundations … Continue reading

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Filed under Estates disputes, Offshore, Private wealth and trusts

Singapore and United States affirm efforts to strengthen sharing of tax information

A joint statement issued by the United States and Singapore suggests that US authorities are seeking to accelerate off-shore tax enforcement aimed at US accountholders and financial institutions in Singapore. A joint statement was issued on 2 August 2016 to … Continue reading

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Filed under Hong Kong and Singapore, Offshore, South East Asia