Abstract
Abstract The Z Trusts litigation in Jersey represents the first occasion on which a Court has considered what is to happen when a trust becomes “insolvent”. The Royal Court has given a series of judgments which deal with various aspects of such a situation, from the duties of trustees, to the procedure for creditor claims, to the question of priority between creditors. As such, it represents a case study in how a Court might approach such a situation and provides useful guidance to trustees and those who transact with them as to what might happen in such circumstances.
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