Introduction
A recent judgment issued by Kawaley J provides a detailed and
helpful analysis on claims seeking to set aside an exercise of
powers on the basis of a lack of capacity and undue influence in
the Cayman Islands.
The judgment in In the Matter of Poulton
Trust1 will be of assistance to individual power
holders, and those assisting or advising such persons, in seeking
to: (i) assess potential deficiencies prior to a purported exercise
of powers; (ii) take steps to protect a purported exercise of
powers from challenge; and (iii) minimise the risk of costly
litigation associated with a challenge to a purported exercise of
powers.
Re Poulton Trust will also be of assistance to
beneficiaries and trustees in assessing their rights, liabilities
and obligations where a purported exercise of powers by an
individual power holder has taken place and may be open to
challenge on the basis of incapacity and/or undue
influence.
