Peter Steen, Partner, and Mariel Stringer-Fehlow, Associate, in Private Wealth Disputes at Mishcon Private, wrote an article for Trusts & Trustees on Unexplained Wealth Orders (UWOs) and explored the potential impact they can have on Trustees (both offshore and onshore).
They state: "In practice, it seems most likely that offshore trustees will have to—or would be prudent to—seek directions in their respective jurisdictions, both when faced with a UWO themselves, and when they receive urgent requests from a beneficiary respondent who needs to comply with a UWO. However, the time frame for responses to a UWO can be very tight (and is ultimately at the discretion of the Court). Accordingly, it is likely most UWO respondents will need to seek an extension of time from the Court to respond fully, especially where offshore structures are involved, and in particularly if an offshore trustee intends to seek directions from their own court."
According to the article, "trustees should keep a careful eye on how the jurisprudence unfolds in this area, and ensure that, if in any way they become involved with a UWO, they consider their options carefully."
Read the full article here.