Trust Briefing: Breach Of Trust

Jersey trust law is principally governed by the Trusts (Jersey) Law 1984 (the TJL). In a number of important areas, Jersey trust law has developed in a different and often more flexible way than in England. Care must therefore be taken when applying English principles to a dispute involving a Jersey trust.

This article explores breach of trust as set out in the TJL, outlining trustee duties, the ins and outs of a claim, third-party liability and circumstances where exoneration may be granted.

The duties of trustees

A trustee is an office endowed with fiduciary obligations.

At the core of the trustee's duties are the obligation to act with utmost good faith and loyalty towards the beneficiaries as a whole. The trustee also owes other duties, such as duties of care and skill, but these are not fiduciary duties. As a fiduciary, a trustee must act in the best interests of the beneficiaries (or trust purpose where there are no beneficiaries) of the trust,