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Private Client update: trusts decision on fiduciary powers; OPG guidance and Court of Protection deputy removal; HMRC interest rate cuts and manual updates; executors’ costs ruling; international adoption recognition

Published on: 13 February 2025

Published by a LexisNexis Private Client expert
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Trusts

Court of Appeal holds that sale of loan assets from insolvent Jersey trusts was void as an improper exercise of a fiduciary power (FS Capital Ltd v Adams)

Private Client analysis:

The Court of Appeal determined that the disposal of loan assets from three insolvent Jersey trusts was invalid because the trustees had exercised a fiduciary power improperly. The ruling underscores the need to evidence particular features of the transactions in order to establish a bona fide purchaser defence, and endorses the principle that an improper use of a fiduciary power is void under English law. It further confirms that a retiring trustee’s exposure for breaches committed by a successor depends on whether the former trustee contemplated that successor’s breach, rather than on the rationale for the retirement...

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