The exception to the “rule”

In the matter of the Arpettaz settlement

There often arises a question facing offshore trustees, as to whether they ought to involve themselves in proceedings afoot onshore concerning the trust, or its assets. It is the generally accepted view that the offshore trustees should not submit to the jurisdiction of a foreign court as it is unlikely to be in the best interest of the beneficiaries. This position is fortified with the evolution of the various “firewall provisions” of offshore jurisdictions which operate to shield the offshore trust from the enforcement of any judgment delivered in a jurisdiction other than the one whose governing law prevails. ¹