Management and control of trusts
Management and control of trusts

The following Private Client guidance note provides comprehensive and up to date legal information covering:

  • Management and control of trusts
  • Key considerations
  • Place of effective management and control

Key considerations

In order to access the benefits of having an offshore trust, it is vital to ensure that the management and control of the trust does, in fact, take place outside the UK. Key considerations include:

  1. the trust must be managed and controlled from outside the UK

  2. a majority of the trustees must be permanently resident outside the UK and have appropriate experience and expertise in the administration of trusts

  3. the trust deed should require that a majority of trustees are resident in the chosen jurisdiction outside the UK. If this is not the case, the deed should be amended

  4. the trustees are ultimately responsible for the management and control of the trust

  5. the trustees must have unfettered discretion over the management of the trust and its assets (subject always to the provisions of the trust deed)

  6. all trustees should do what they are legally empowered to do and this should be evidenced by the holding of regular trustee meetings in the jurisdiction where the trustees reside

  7. all meetings of the trustees must be properly minuted, the minutes reflecting reasoning as well as simply decisions

  8. all trustees minuted as present must in fact have been present at the meeting

  9. the minutes must show that due consideration has been given to each item on the agenda such that no