Some Channel Island trustees may not be adequately protected from potential personal liability, experts running a seminar run across the islands have discovered.
Collas Crill’s Spring Seminar Series started this week with a focus on the potential for trustees in Jersey and Guernsey to be held personally liable for significant sums of money in the light of recent cases.
Guest speaker Mark Hubbard, barrister at New Square Chambers and author of “Protectors of Trusts”, and Collas Crill group partner Edward Stone, reviewed some significant recent developments affecting trustees and considered the practical steps trustees can take to better protect themselves against claims from third parties or beneficiaries.
“I got the impression that it came as a surprise to some delegates to find that when trustees enter into arrangements with third parties, they aren’t automatically immune from personal liability,” said Mark. “The clear message from the session was that that may not always be the case.”
Mark added that trustees should ensure that the proper law of their contracts align with the proper law of the trusts.
“There is considerable value in dealing with these issues head-on with trustees,” he added. “Don’t leave them to chance.”
Edward Stone highlighted how a the use of a foundation as a trustee – unique in the Channel islands – can afford additional liability protection to trust service providers and provide greater flexibility when dealing with an international client base.
The seminar took place in Guernsey and Jersey this week.