The Privy Council has decided that a judgment debtor who has placed money in trust but retained a power of revocation over the trust can be forced to exercise the power for the benefit of his creditors. The decision seems likely to alarm settlors who have retained such powers, as well as trustees and advisors who have advised them that money settled in such a way cannot be reached by those to whom they may owe money.
Stephen Moverley Smith QC and Alexander Pelling acted on this successful appeal from the Court of Appeal in the Cayman Islands. They represented the Turkish financial services authority seeking to recover monies following a substantial bank fraud in Turkey.
As well as the judgment, further details are available from the clerks.