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ARTICLE · 10 JULY 2014

Dangerous Times For Trustees?

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It can sometimes be a dangerous business to be a professional trustee operating in a world where the fiscal and judicial authorities of certain on-shore states take a dim view of their citizens’ desire to minimise their exposure to taxation.

GuernseyWealth Management

It can sometimes be a dangerous business to be a professional trustee operating in a world where the fiscal and judicial authorities of certain on-shore states take a dim view of their citizens' desire to minimise their exposure to taxation.

Where such a trustee is behaving perfectly properly (in accordance with the laws and regulations of its own jurisdiction) but suddenly finds itself on the receiving end of a criminal summons from another jurisdiction what is it to do?

In theory it could, of course, go to the authorities of that other jurisdiction and try to demonstrate that it was behaving perfectly properly in relation to whichever structure that authority was concerned about, but to do so would necessarily entail disclosing considerable details in relation to the particular trust, its assets and its beneficiaries. Would acting in such a way constitute a breach of the trustee's obligations to the beneficiaries? Would the courts of the trustee's

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