As we initially discussed in our April 27, 2014 blog entry, the Isle of Man recently enacted The Isle of Man Trusts (Amendment) Act 2015. The three main principles enacted by this Act include (i) the abolition of the Isle of Man’s “Two Trustees Rule;” (ii) the abolition of a perpetuity period for Isle of Man trusts; and (iii) certain matters related to the recognition or enforcement of foreign judgments.
There was a previous requirement that either a trust corporation or two individuals must serve as trustees of an Isle of Man trust. This rule has been abolished. Next, the Act removed the requirement that a beneficiary’s interest in a trust must vest within a specific time frame. While a defined period may still be included in the settlement of trust, it is no longer required. Third, the Act excludes the recognition or enforcement of foreign court judgments if they are inconsistent with the Trusts Act 1995, unless the High Court orders that the judgments are to be recognized.