Arbitration In Trust Disputes – The Good And Bad

As Jersey plans to introduce changes to its trusts law, Damian Evans, Partner, Walkers Jersey, and Paul Buckle, Group Partner, Walkers Guernsey, take a look at how arbitration may play a larger role.

As businesses in the Channel Islands peer anxiously over Brexit's shoulder and 'The Donald' storms into the White House amid protests in the United States, the world's communities have never felt so divided.

The Government of Jersey, in the context of trusts law (and proposing to follow Guernsey's lead), has started consultation on possible amendments to its Trusts (Jersey) Law 1984, which would allow a settlor to include within the trust instrument a clause that requires all or any disputes relating to the trust to be adjudicated upon by an arbitrator. This would signify a momentous change in the manner in which trust disputes are resolved in Jersey – avoiding hostile Court proceedings in favour of arbitration.