Conyers Dill & Pearman

Offshore Top 30 position: 6

Bermuda Court of Appeal upholds decision of Supreme Court to order disclosure

It is not unusual for a settlor to impose confidentiality conditions upon trustees by the terms of the trust. However, there are limits to the extent to which information may be withheld from beneficiaries. Ultimately, all such conditions are subject to review by the court under its supervisory jurisdiction to ensure the proper administration of trusts. In the matter of An Application for Information about a Trust [2013] CA (Bda) 8 Civ, the Bermuda Court of Appeal held that a restrictive veto power to withhold information could only be supported if it was consistent with the proper administration of the trust. Disclosure of financial information to a beneficiary was ordered as it was considered necessary to ensure that the trustees were held accountable to their beneficiaries.

The appeal was against the decision of the chief justice dated 12 March 2013 and his subsequent order requiring the trustees to produce trust accounts and related documents with safeguards intended to maintain their confidentiality and restricting the use of the information. Their request for information was made by B, a beneficiary of a Bermuda law discretionary trust.

Under a deed of appointment, B was potentially entitled to a fixed percentage of the assets of the trust worth a substantial amount and a right to income payments for life. The protector of the trust, also a beneficiary, was B’s mother who held a power to prohibit trustees from disclosing trust information under the terms of the trust…

Click on the link below to read the rest of the Conyers Dill & Pearman briefing.

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Overview

10 Dominion Street
London
EC2M 2EE
UK
http://www.conyersdill.com

Qualified lawyers: 128
Partners: 49