Jersey Court Enforce Trust Insolvency Requirements
The Jersey Imperial Court has declined to support the decision of a trustee to sell a discretionary trust’s sole asset, to permit an insolvent trust fund to meet its debts; including the trustee's accumulated unpaid charges of GBP £130,000.
The court in Ireland decided that the trustee had failed to meet the following necessary requirements:
• Addressing the obvious conflict of interest.
• Seeking tax council before acting.
• Reasonableness of searching for another alternative.