In re Z II Trust [2015] 2 JLR 108 (23 September 2015)

In re Z II Trust [2015] 2 JLR 108 (23 September 2015)

The appointment of additional trustees of an insolvent trust will be set aside if it is not in the interests of all creditors, as the power to appoint trustees is fiduciary and must be exercised for the benefit of creditors when the trust is insolvent.

Source-derived case information.

Citation
[2015] 2 JLR 108
Parties
Applicant: Unknown (Z II Trust parties); Respondent: Unknown (Z II Trust parties)
Jurisdiction
Jersey
Judgment Date
23 September 2015
Procedural Posture
Trust Law Application / Judgment
Outcome
Appointment of additional trustees set aside
Legal Topics
Appointment of Trustees, Fiduciary Duties, Insolvent Trusts
Trusts and Estates Appointment of Trustees Fiduciary Duties Insolvent Trusts

Source-derived case record

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Parties

Unknown (Z II Trust parties)

Applicant

Unknown (Z II Trust parties)

Respondent

Procedural Posture

Trust Law Application / Judgment

Legal Issues

  1. 1 Whether the power to appoint trustees is fiduciary and must be exercised in good faith for the benefit of beneficiaries or creditors if the trust is insolvent
  2. 2 Whether the appointment of additional trustees of an insolvent trust can be set aside if not in the interests of all creditors

Ratio Decidendi

The appointment of additional trustees of an insolvent trust will be set aside if it is not in the interests of all creditors, as the power to appoint trustees is fiduciary and must be exercised for the benefit of creditors when the trust is insolvent.

Court Disposition

Appointment of additional trustees set aside

Orders

  • Appointment of additional trustees of the insolvent trust is set aside