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ARTICLE · 02 NOVEMBER 2026

Global Instability, Protectionist Measures And Flee Clauses

As political instability increases globally, flee clauses in trust structures are experiencing renewed relevance. This article examines how these Cold War-era provisions automatically trigger trustee changes and jurisdictional shifts when prescribed events like war, invasion, or civil disturbances occur, exploring the practical and legal complexities that arise when determining whether such events have actually been triggered.

GlobalWealth Management

Flee clauses were a common feature of Cold War-era structures. As the risks associated with Soviet invasion have disappeared, the popularity of flee clauses has diminished. That is not to say that they disappeared entirely from some older structures. The subject has come up with cataclysmic storms such as Hurricane Ivan in September 2004 and Hurricanes Irma and Maria in September 2017. Flee clauses were also discussed at the time of the Covid-19 pandemic. They are now being considered in response to the recent unfortunate turn of events in the Middle East. 

What is a flee clause in a trust?

The idea behind a flee clause is that, upon the happening of a prescribed external event, there will be an automatic retirement of a trustee and the appointment of a new trustee in their place. There might also be an automatic change to the proper law of the trust. The idea of external events triggering automatic changes to the trust is not confined to flee clauses. 

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