The expenses of trustees, the right of indemnity and the role of taxation: making the equation work

The purpose of this article is to examine a Trustee's indemnity in respect of its expenses and liabilities incurred in connection with the Trust and how beneficiaries are able to have them scrutinized. This article considers, in particular, specific assessment procedures that have evolved in England, Jersey and Guernsey and, further, difficulties that have arisen in ensuring that any assessment procedure is consistent with the Trustee's right of indemnity. In Jersey, all these issues came to the fore in the case of Re Internine Trust [2007] JCA 164 that is examined in particular detail.