Trustees’ rights of indemnity and retention—revocation of trust (Belen Clarisa Velutini Perez v Equiom Trust Corporation (UK) Ltd) and another

Table of contents

• What are the practical implications of this case?
• What was the background?
• What did the court decide?
• Case details

Article summary

Private Client analysis: This decision from the High Court of Justice helps to clarify the rights and duties of trustees and settlors derived from the revocation of a trust and the transfer of assets following a revocation. The case in particular considers the right of trustees to the statutory indemnity, the amount that they are entitled to retain to cover liabilities, costs and expenses and how long they may retain such assets for. The court held that most of the amount retained by the trustees of the revoked trust should be released, that they could retain the remaining assets for no more than 12 months and that their right to indemnity should be curtailed and limited to 70% of their costs based on their conduct. Written by Ronnie Myers, senior associate and Ricardo Sitrangulo, legal adviser and both at Burges Salmon LLP.