In a recent case, the High Court of the Isle of Man had to consider an appointment of new trustees by the protector of a settlement in circumstances where the protector was also one of the beneficiaries and was in dispute with another of the beneficiaries. One of the main issues before the court was whether the protector was properly motivated in exercising her power of appointment under the settlement
The case eventually turned on its own facts, but along the way, the court had to consider a number of legal propositions of more general application.
The case actually came before the court as a result of the protector being forced to issue proceedings following on from the refusal of the original trustees to accept the validity of her appointment of new trustees (to hold office jointly with the original trustees). It subsequently turned out that such refusal by the original trustees was at the instance of one particular aggrieved beneficiary alleging that the protector was abusing her position for personal reasons connected with a dispute between herself and the aggrieved beneficiary.
Read the full article: High Court Rules on Appointment of Trustees