Nov 1, 2011 12:00 PM

How to negotiate the minefield of litigation abroad

By Rachael Reynolds

Trustees sometimes find themselves staring down the barrel of the litigation gun, whether as the target, or, more typically, as a neutral party standing among warring factions fighting over trust assets. Due to the increasingly international nature of trusts — with beneficiaries, trustees and trust assets often located in several different jurisdictions around the globe — the war may be waged abroad. So how should trustees respond to being caught up in foreign trust disputes, and how far reaching is the long arm of foreign law?

Foreign litigation can be a minefield for trustees. The law of enforcement and recognition of foreign judgments, in particular, is developing both onshore and offshore, but not necessarily in the same direction. So, how a trustee should respond to a foreign proceeding will depend on the location of the assets, any relevant firewall legislation (that is, legislation passed by a jurisdiction limiting the ability to enforce foreign orders regarding trusts located in that jurisdiction) and the nature of the proceeding.

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Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

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2011 Trust Glossary

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50 Years Ago This Month

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50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb.

Conrad Teitell's Guide to Tax Benefits For Charitable Gifts

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