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The irreducible core of a Guernsey Trust: the offshore trustee en bon père de famille

Clarry, Daniel (2014) The irreducible core of a Guernsey Trust: the offshore trustee en bon père de famille. Jersey and Guernsey Law Review.

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Abstract

This article analyses the recent decision of the Judicial Committee of the Privy Council in Spread Trustee Co Ltd v Hutcheson and considers the effect of the Board’s reasoning on comparative trust law and contemporary trust practice (both on and offshore). The article situates the Privy Council’s judgment in the ongoing debate over the permissible scope of trustee exemption clauses, as well the emerging stream of jurisprudence on the irreducible core approach in trust law. The article considers the standard of care that must be exercised by trustees in a number of jurisdictions, including England, Guernsey, Jersey, Scotland and South Africa. Although the irreducible core of a Guernsey trust includes the obligation of a trustee to observe the utmost good faith and act en bon père de famille, the Board failed to explain how the indemnified conduct of a grossly negligent trustee can be reconciled with that unique obligation. Guernsey and Jersey have now legislated precisely on the standard expected of offshore trustees to ensure that trustees are not permitted to act in a grossly negligent manner with impunity in their administration of Guernsey and Jersey trusts.

Item Type: Article
Official URL: https://www.jerseylaw.je/publications/jglr/
Additional Information: © 2014 Jersey Legal Information Board
Divisions: Law
Subjects: K Law > K Law (General)
Sets: Departments > Law
Date Deposited: 06 Jan 2017 16:41
Last Modified: 19 Nov 2019 11:47
URI: http://eprints.lse.ac.uk/id/eprint/68774

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