Disclosure Of Trust Information To Beneficiaries ' A Practical Jersey Guide

• Published date: 17 July 2020
• Subject Matter: Privacy, Data Protection
• Law Firm: Carey Olsen
• Author: Ms Alexa Saunders and Nichola Aldridge

This briefing is intended to be a practical guide to Jersey trustees when faced with requests for information from beneficiaries of the fund.

It is a fundamental and well-known principle of trusts law that a trustee is liable to account to its beneficiaries for its trusteeship. Accordingly, a trustee must maintain accounts and (save in special circumstances) provide information and explanations as to the investments of, and dealings with, trust property. However, in some cases, it may be inappropriate for a trustee to disclose certain information, especially where there is a genuine concern as to the effect of disclosing that information.

What information can/should a trustee disclose?

It is a fundamental and well-known principle of trusts law that a trustee is liable to account to its beneficiaries for its trusteeship. Accordingly, a trustee must maintain accounts and (save in special circumstances) provide information and explanations as to the investments of, and dealings with, trust property¹. However, in some cases, it may be inappropriate for a trustee to disclose certain information especially where there is a genuine concern as to the effect of disclosing that information. This briefing is intended to be a practical guide to trustees when faced with requests for information from beneficiaries.

What information can/should a trustee disclose?

Article 29(1) of the Trusts (Jersey) Law 1984, as amended (the "Trusts Law")² provides that:

"Subject to any order of the court, the terms of a trust may -

1. confer upon any person a right to request the disclosure of information or a document concerning the trust;
2. determine the extent of the right of any person to information or a document concerning the trust or
3. impose a duty upon a trustee to disclose information or a document concerning the trust to any person."

So the first port of call for any trustee faced with a request for disclosure of trust information or documentation is the trust instrument. The trustee should consider who is making the request (e.g. are they a beneficiary) and what the trust instrument provides in terms of who the trustee is authorised or required to disclose information to and what information it is authorised or required to disclose.

In addition, Article 29(2) of the Trusts Law provides that subject to any order of the court and the terms of the trust beneficiaries (including named charities) and enforcers of purpose trusts "may request disclosure by the trustee of documents...