Duties Of Outgoing Trustees

Introduction

In Re: Caversham Trustees Limited [2008] JRC 65, the Royal Court set out steps that should be taken by an outgoing trustee in order to comply with its duty to transfer trust assets to the new trustees, and provided further guidance as to what security the trustee could legitimately require.

The Court also clarified that there was no difference in the duties applicable in a retirement and appointment of trustees to those owed where the trustee is appointing the trust assets to a new trust.

Outgoing Trustees' Duties

Following a relationship breakdown between the settlor/beneficiary ("Mr. Van Dalfsen") and the trustee ("Caversham") it was agreed that the trust assets would be appointed to a new trust. However, the transfer took four years, and the Court was asked to determine whether Caversham had caused undue delay. The Court resolved that as (effectively) an outgoing trustee, Caversham was under a duty to co-operate fully and actively in the