Jurisdiction(s):
United Kingdom

Key definition

Flee clause definition

What does Flee clause mean? 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...

Flee clauses in trusts: definition, model clause, triggers, drafting, enforcement, public policy and alternatives

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Practice notes

What is a flee clause?

A flee clause is a provision in a trust deed that is intended to shift, automatically, the trust property, the office of trustee and the forum for trust administration to a ‘safe’ jurisdiction when specified triggers occur. Common triggers include the collapse of public order, natural catastrophes, socialist measures aimed at seizing private assets, the introduction of a tax that previously did not apply, the bringing in of exchange controls, or a situation where a trust faces creditor attack.

Example flee clause

AUTOMATIC RETIREMENT OF TRUSTEES AND CHANGE OF JURISDICTION

[A] if any of the circumstances listed in clause B (‘the Emergency Event’) arises, [name of alternate trustee] shall act as the alternate trustee (‘the Alternate Trustee’) and the following shall take effect:

(1) Any trustee domiciled in the territory in which the Emergency Event takes place shall, without further act, cease to hold office as a trustee of the Trust and shall, for the purposes of this clause, be called ‘the Retiring Trustee’

(2) The Alternate Trustee or Alternate Trustees (as appropriate) shall assume office as the new trustee or trustees of this Trust in substitution for any trustee so ceasing under this clause...

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Web page updated on 21/05/2026

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