Trusts Across Borders: Steering through the European Union's Insolvency Directive and Its Implications for Trustees

This article delves into the multifaceted roles and responsibilities of trustees in cross-border insolvencies, with a spotlight on the EU’s proposed directive aiming to harmonise insolvency law. It acknowledges the unique position of trustees who, while not forming an insolvency-prone entity, are personally liable and entitled to an indemnity from the trust assets. The article will explore the complexities arising from the interplay of insolvency law and trust principles revealing potential challenges and opportunities. It offers practical guidance for navigating this evolving landscape while emphasising the careful consideration of trustees’ fiduciary duties.