Flee clause meaning

A flee clause (also called a flight or migration clause) is a trust deed provision that, on specified trigger events, ends the office of the existing trustees and appoints an identified body of replacement trustees resident in another jurisdiction, often with a change in the trust’s place of administration and sometimes governing law. Typical triggers include adverse tax or regulatory change, exchange controls, political instability, risk of expropriation, or court orders affecting the current trustee’s jurisdiction. The objective is to protect the trust’s administration and, where relevant, its tax and regulatory position. The term is a descriptive drafting expression, not defined by legislation, and is recognised in practice rather than as a distinct legal concept in case law. It is common in international/offshore trusts and may appear in UK- and Irish-governed settlements; usage is broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland, subject to each jurisdiction’s trust and conflicts rules. Effectiveness depends on clear drafting, valid retirement/appointment mechanics, any required consents (for example, a protector), and practical steps to transfer assets. Anti-avoidance rules, public policy and enforcement risks can limit or defeat its operation.