(Grand Court of the Cayman Islands) The court considered a proposed undertaking by successor trustees to their predecessors not to distribute a proportion of the trust fund for as long as it was required to meet the outgoing trustees’ entitlement to an indemnity.
Held: Such an undertaking, giving effect to the retiring trustees’ entitlement to an indemnity and lien, was, although restrictive of the successor trustees’ discretionary powers, plainly not an illegitimate fetter on their discretion. The rule preventing a trustee from fettering his future exercise of a discretion given to him under the trust was not universal.
Judges:
Smellie CJ
Citations:
[2007] WTLR 951
Jurisdiction:
Commonwealth
Cited by:
Cited – Jones and others v Firkin-Flood ChD 17-Oct-2008
The trustees had contracted to sell shares in a private company held within the estate. A family member now claimed that they were held in trust after a settlement of a possible challenge to the will based in lack of testamentary capacity and undue . .
Lists of cited by and citing cases may be incomplete.
Trusts
Updated: 01 May 2022; Ref: scu.277071