No Security Over Beneficiary Rights

CREDITOR DENIED ENFORCEMENT REMEDIES AGAINST BENEFICIARY INTERESTS UNDER JERSEY TRUST

The Royal Court recently considered, for the first time, whether it was possible to issue an arrêt  (a form of distraint) over the rights of a discretionary beneficiary under a Jersey trust.

The application arose against the backdrop of findings of fraud and contempt against an individual (the defendant) made by the Courts of England and Wales. Having obtained judgment against the defendant in England, the plaintiff attempted to enforce its terms but has had considerable difficulty in doing so. As part of this tortuous process, the plaintiff registered an English judgment in Jersey under the provisions of the Judgments (Reciprocal Enforcement) (Jersey) Law 1960 so as to attempt to enforce the judgment against the defendant's assets held in Jersey. The plaintiff had not been wholly successful in its enforcement endeavours and accordingly, in order to circumvent other