Will The Court Always Have A Trustee's Back?

In the case of In the matter of Rabaiotti 1980 Settlement [2000] JLR 173 it was held that "if trustees slavishly follow a letter of wishes, their decision can be quashed on the grounds that it is not, in truth, the decision of the trustee".

In a recent judgment, a trustee requested the Guernsey Court's blessing to distribute the assets of the trust in accordance with a letter of wishes in order to limit any future challenge of the trustee's decision.

The Court considered the following factors as important when considering whether to approve the decision of the trustee:

1. The trustee had sought legal advice;
2. The trustee was aware of the requirement for it to exercise its own discretion;