Amendments to Isle of Man Trust Law
In May the Isle of Man presented to Tynwald the Trusts (Amendment) Act 2015 which was expected to become operational on June 16 2015.
One of the most important amendments was in connection with powers of foreign court orders. The Isle of Man already has protection covered in the Trusts Act 1995 which introduced the exclusion of foreign law in relation to trusts covered by Manx law in relation to forced heirship rights and protection against judgements made in connection with foreign divorce law.
The new Trust Act extends this protection to cover Trustees and Beneficiaries in addition to the Settlor so that whatever the capacity of the person it shall not be grounds to challenge a trust regardless if the other jurisdiction recognises such trusts or not. It has also added a sub-section which states that no judgement or order of a court outside the Island is to be recognised or enforced if this is inconsistent with the Trusts Act 1995 or the High Court.
The Trust amendments are also seeking to abolish the two trustees rule and the perpetuity period.
If you would like more information on how Isle of Man Trusts or Trusts in any other jurisdiction can offer benefits such as the protection demonstrated above please do not hesitate to contact us
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