Trustees apply for Beddoe Relief if they wish to pursue litigation while protecting themselves from potential claims on the part of beneficiaries that the costs of the action shouldn’t be covered by the trust fund. The courts may also protect beneficiaries who litigate for and on behalf of the trust by allowing them their legal costs, and any adverse cost orders, to come from the trust fund. Both trustees and beneficiaries should take advice in advance about the proposed litigation in order to qualify for cost protection.
Stephen Baker chaired the seminar and panel discussion, which focussed on the key technical challenges surrounding Beddoe Relief. Topics covered included directions for trustees, the advice that trustees and beneficiaries should seek when considering litigation, and protective cost orders for beneficiaries.
Stephen Baker’s introduction provided insight into Jersey’s strengths and experience as a jurisdiction in which Beddoe Relief and directions applications are a well established feature of trust practice.
Senior Associate, James Sheedy, and Associate, Dilly Wright also represented Baker and Partners at the event.
Stephen Baker, commented:
“This conference gave us a great opportunity to discuss the ways we have dealt with the complex issues involved when trustees and beneficiaries decide to litigate on behalf of the trust. Our experience is that Jersey’s approach is particularly practical and robust when dealing with these technical issues.”