Beddoe relief where a third party claim may exhaust trust assets

Contentious Trusts & Estates
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The Grand Court of the Cayman Islands has delivered an important judgment, clarifying the ability of a Cayman Islands trustee to obtain Beddoe relief when faced with a third party claim that exceeds the value of the assets currently held in trust.

In reaching this decision, the Chief Justice also addressed the scope of a third party litigant’s ability to participate in a Beddoe application and who should bear the burden of costs.

A full summary of this decision can be found at: https://www.ogier.com/publications/beddoe-relief-where-a-third-party-claim-may-exhaust-trust-assets

A Q&A with LexisNexis is at: https://www.ogier.com/publications/beddoe-relief-a-case-study-from-the-grand-court-of-the-cayman-islands

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Trustees looking for confirmation as to costs can also consider s 66 of the Trustee Act 1956, which provides for trustees to seek directions from the court. However, how much help and how much risk must a trustee continue to assume? Is it possible, when hard decisions need to be made, to get the “blessing” of the court so that the trustee is absolved from all liability? This was the question posed in Re PV Trust Services Limited.

See further at https://mattersoftrust.co.nz/2017/12/31/the-blessing-of-the-court/