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Trustees and dispute resolution: Why experience matters 

30 Apr 2025

By Janice Callander, Director, Private Wealth, Jersey 

When trustees face difficult decisions—especially those involving litigation—they increasingly turn to courts for what’s known as a “blessing” application (traditionally called a Beddoe application). These applications essentially ask the court to approve a trustee’s proposed course of action, providing both protection and guidance. 

A recent case before the Royal Court of Jersey, Representation of Z as Trustee of The A Family Settlement [2025] JRC 062, offers valuable clarity on how courts approach these applications. More importantly, it highlights why trustee quality has never been more critical. 

The court’s supervisory role: Blessing the process, not the outcome 

In the Representation of Z case, the Royal Court confirmed that when considering a blessing application related to trust litigation, the key question is not whether the trustee’s proposed course of action is the “right” decision, but whether it falls within the range of decisions a reasonable trustee could properly make. 

Put differently, the Royal Court examined not only the decision itself, but how the trustee arrived at their decision—including the information gathered, the advice obtained, and the balancing of beneficiaries’ interests. 

The final judgment reaffirmed a fundamental principle: the court’s role is not to substitute its own decision for that of the trustee, but to ensure the trustee’s decision-making process meets proper standards. 

Trustees must be able to demonstrate that they: 

  • Properly informed themselves of the relevant facts 
  • Acted in good faith, without conflicts of interest 
  • Duly considered the interests of all beneficiaries 
  • Made a rational decision that a reasonable trustee could make 

Trustee quality is more important than ever 

 Seasoned trustees are distinguished not just by technical skill, but by their ability to manage human dynamics, anticipate conflict, and guide families through periods of uncertainty with calm and authority. The calibre of your trustee can determine whether disputes escalate into costly litigation or resolve efficiently.  

The key attributes of highly effective trustees in contentious scenarios include: 

 Proactive conflict recognition: Identifying issues early and addressing them openly 

  • Consensus-building experience: Drawing on prior experience to facilitate agreement among beneficiaries 
  • Strong communication and mediation skills: Engaging constructively with stakeholders 
  • Access to professional advisers: Leveraging networks of arbitrators, mediators and independent counsel when needed 
  • Common sense and impartiality: Balancing legal obligations with the human realities of family relationships 
  • Diplomacy and authority: Managing tensions with discretion, empathy and a steady hand 
  • Pragmatism: Offering practical examples and case studies to help beneficiaries appreciate the financial and emotional costs of protracted litigation 

 Effective trustees combine technical excellence with emotional intelligence, positioning them to navigate disputes thoughtfully and preserve trust structures for the long term. 

How IQ-EQ can help navigate conflict 

 At IQ-EQ, we understand and have significant experience handling the sensitivities and complexities inherent in trust disputes. Our Jersey business has developed a niche practice focused on navigating conflict, providing families with options for managing or avoiding protracted (and costly) litigation. 

 We work closely with families and their advisers to: 

  • Proactively manage areas of potential conflict 
  • Explore alternatives to litigation, including negotiation and mediation 
  • Protect and preserve the trust’s value and purpose while honouring fiduciary duties

Where litigation is unavoidable, we ensure that trustees are properly informed, supported and positioned to act decisively and credibly, securing the best possible outcomes for all parties involved.  

If you’re concerned that family disharmony might escalate into a dispute, please reach out for a confidential discussion. Our experienced team can help you assess risks, strengthen governance, and implement strategies to prevent disputes from derailing your family’s long-term objectives. 

Get in touch with our expert team today.  

Working with IQ-EQ has been seamless – you and your team understand our business, advise us appropriately, and handle your side of our collective partnership so that we can focus on making good investment decisions. Evan Gibson SVP, Merchants Capital

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