International trust administration

In the day-to-day administration of trusts settled outside of England and Wales, and where the governing law is not that of England and Wales, it remains quite usual that documents in respect of those trusts continue to be drafted and executed in England and Wales. This can be for any number of reasons. The most common however is that the settlor, trustees, or a protector, (ie those who may have various powers under the trust deed) are not resident within the jurisdiction in which the trust is settled at the time of exercising the power but rather in England. In such instances it remains important to ensure that where the donee intends to exercise a power provided for within the trust deed, the exercise of such power is carried out according to the governing law of the trust and not that of the jurisdiction in which they may be situate. It is also of importance to ensure that any document drafted evidencing the exercise of such power also conforms to the formalities prescribed by the laws of the jurisdiction which govern the trust. If this is not done, the trustees, or those purporting to exercise the power, may find themselves in hot water!