You Will or UWOn’t: Trustees’ Compliance with Unexplained Wealth Orders

Abstract

Abstract Much has been written about Unexplained Wealth Orders (UWOs) since they came into existence on 31 January 2018; however, very little attention has been paid—at least in the legal press—to the potential impact such Orders could have on Trustees (both offshore and onshore). Following recent decisions by Supperstone J in late 2018 (National Crime Agency v Mrs A [2018] EWHC 534 (Admin)), we now know a little more about how the Court will approach UWOs, in particular where there is an offshore/trust element. This article focuses on highlighting the most pertinent issues which will likely need to be addressed by trustees and beneficiaries: should either party be served with a UWO, or be connected to someone who is served? The UWO legislation remains in its infancy, however, it is clear that enforcement agencies increasingly regard UWOs as useful tools in their armoury. The interface between UWOs and trusts is likely to create heightened tension between beneficiaries under intense pressure from the English Court, and offshore trustees looking to protect themselves and their beneficiaries. This article is aimed at increasing the awareness of trustees and advisers of the potential impact of UWOs, and in particular the fact that UWOs will not just affect those in the United Kingdom. The respondent to a UWO does not need to live in the United Kingdom, and the property which can be the subject of a UWO also does not need to be located in the United Kingdom, so offshore individuals need to also be aware of UWOs and their potential ramifications.