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Receivers and revocable trusts: reserved powers cannot be exercised against the will of the settlor
TMSF v Merrill Lynch Bank and Trust Company (Cayman) Limited, 26 June 2009
A recent judgment of Chief Justice Smellie in the Grand Court of the Cayman Islands has considered the nature of a settlor's reserved power of revocation in a Cayman Islands trust. It is believed that this is the first time this issue has been judicially considered. The judgment was in the context of whether the trust assets may be made available to satisfy a judgment creditor of the settler through the appointment of a receiver by way of equitable execution empowered to exercise the reserved power of revocation against the will of the settlor.
Correspondence: *Nigel Meeson, Conyers Dill & Pearman, Cricket Square, Hutchins Dr., P.O. Box 2681, Grand Cayman, KY1-1111, Cayman Islands. Nigel Meeson QC is head of litigation in the Cayman Islands office of Conyers Dill & Pearman and appeared on behalf of the successful Settlor in this case. For further information, contact Nigel Meeson, Tel: +1 (345) 814 7392; Email: Nigel.Meeson{at}conyersdillandpearman.com
This article is not intended to be a substitute for legal advice or a legal opinion. It deals in broad terms only and is intended to merely provide a brief overview and give general information.