Are you a settlor looking to retain an element of control over your trust? Perhaps you have a list of issues you would like to be decided by you, a friend or trusted adviser rather than by your overseas corporate trustee? Are you a trustee looking after a settlor-directed trust and wondering whether you are adequately protected? Or do you expect the settlor to try and control trust assets, and therefore consider that a clear framework as to who decides what from the outset may be beneficial to everyone?
Building on our previous article, in which we looked at options for reserving powers in a number of key trust jurisdictions, we explore what can go wrong when too much power is retained or concentrated, and ask if anything can be done to remedy any resulting difficulties.
For a snapshot on reserved powers or settlor-directed trusts read the full article or contact Dawn Goodman or Lucy Johnson.
This article was originally published in July 2020 for the Trusts & Trustees Journal, under the title 'To reserve or not to reserve? What can possibly go wrong - Part II'.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.