This is part of a series of guides in which we examine areas of
law that frequently arise in practice. Further guides will be
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Crill news and insights by email.
What is a lien?
In general terms, a lien is a right which entitles a party to
hold on to assets in their possession pending payment of a debt
owed. In the context of trusts, a trustee with a right of indemnity
against the trust assets has an equitable lien on the assets of the
trust that may continue even if those assets are no longer in the
trustee's possession (known as a non-possessory lien).
Why might a trustee of a Guernsey law trust rely on a
lien?
Liens most commonly crop up in the context of a trustee's
retirement or removal from office. A trustee would usually be able
to reimburse itself from trust property for all expenses and
liabilities properly incurred in connection with the trust. But
when a trustee retires or is removed, the
