In re E Trust v [2008] JLR 360 (11 September 2008)

In re E Trust v [2008] JLR 360 (11 September 2008)

Where a trustee is faced with an obvious conflict of interest due to being trustee of two trusts with beneficiaries in dispute and a real prospect of litigation, the trustee must retire from one trust without considering the interests of the other trust's beneficiaries, and without the need for court directions, regardless of the absence of criticism or other complicating factors.

Citation
[2008] JLR 360
Parties
Applicant: E Trust
Jurisdiction
Jersey
Judgment Date
11 September 2008
Procedural Posture
Trusts Retirement of Trustees / Application for Retirement of Trustee Due to Conflict of Interest
Outcome
Trustee required to retire from one trust due to conflict of interest.
Legal Topics
Retirement of Trustees, Conflict of Interest, Trustee Duties
Trusts Equity Retirement of Trustees Conflict of Interest Trustee Duties

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Parties

E Trust

Applicant

Procedural Posture

Trusts Retirement of Trustees / Application for Retirement of Trustee Due to Conflict of Interest

Legal Issues

  1. 1 Whether a trustee of two trusts must retire from one trust due to a conflict of interest when beneficiaries are in dispute over trust assets and there is a real prospect of litigation

Ratio Decidendi

Where a trustee is faced with an obvious conflict of interest due to being trustee of two trusts with beneficiaries in dispute and a real prospect of litigation, the trustee must retire from one trust without considering the interests of the other trust's beneficiaries, and without the need for court directions, regardless of the absence of criticism or other complicating factors.

Court Disposition

Trustee required to retire from one trust due to conflict of interest.

Orders

  • Trustee to retire from one trust without need for court directions.