LEGAL COUNSEL
INTERNATIONAL PRIVATE CLIENT
VIRTUAL ROUND TABLE
FAMILY OFFICE TRUST
Description
In this session, I shall be joined by David Brownbill QC of XXIV Old Buildings.
As some of you may know, David is a leading Queens Counsel and has been involved in some of the most prominent recent international trust cases, including the Privy Council decisions in Schmidt vs. Rosewood and Crociani vs. Crociani.
David and I will discuss and evaluate the Family Office Trust.
The question that David and I will answer is whether excessive reservation of powers under the trust to either the settlor or protector may ultimately invalidate the trust? The implications of the recent UK Privy Council decision in Webb vs. Webb [2020] UKPC 22, along with a series of supporting cases including “TMSF” “Pugachev” and “Dua” will be discussed in detail.
The trust laws of Singapore and Hong Kong will be considered, in light of those recent decisions, with potential risks highlighted and discussed.
The talk will end with a practical assessment of steps that may be taken in order to protect the integrity of a Family Office Trust, including:
(a) best practice trust drafting amendments;
(b) use of private trust companies;
(c) use of offshore trust laws, including Jersey, Guernsey, Cayman and BVI.
Demand for Family Office Trusts, containing complex co-governance powers and provisions can be expected to grow, it is therefore imperative that professionals involved in providing trust solutions understand the dangers and limits of reserving excessive powers to either the settlor and/or protector and the practical steps that may be taken in order to protect the integrity of the trust.
