Forced retirement of trustees

In the older Kessler precedents for trust administrative provisions, this appears:

“A Trustees who has reached the age of 65 shall retire if he is requested to do so by . . . a Person interested in Trust Property”

Simple question: is one of the potential beneficiaries of a discretionary trust a “Person interested in Trust Property”.

Michael Cutler
Colemans Solicitors LLP

In a recent case, the Guernsey (?) court held that the sole named beneficiary of a trust where there was power to add beneficiaries was the only person interested in the trust and was entitled to apply to the court for a winding up of the trust fund in its favour. Whether r not the settlor had provided a letter of wishes “directing” otherwise appears to have had little relevance.

Whilst this may have been specific to the particular terms of the legislation, I am inclined to the view that unless a person is clearly within the beneficiary class they cannot necessarily be taken to be “a person interested in (the) trust property”, regardless of whether they might be intended to benefit at the end of the day.

Paul Saunders