Trustee Duties And Corporate Structures: An Update Following Pilatus v RBC Trustees

In December 2025 the Guernsey Court of Appeal handed down its decision in Pilatus (PTC) Ltd v RBC Trustees Ltd. The judgment provides important guidance on what constitutes trust property and the scope of a trustee's duties when corporate structures are involved.

The case underscores the breadth of the definition of trust property and clarifies that trustees cannot ignore corporate realities when managing assets linked to the trust.

Background

The trustee sold a trust asset company, which held two subsidiaries, to a third party via a share sale. The terms of the sale divested the trust of the company and its subsidiaries in their entirety, however the parties also agreed an Option Agreement that granted the trustee the right to reacquire the company and subsidiaries within a specified timeframe.