The double-edged sword of beneficiary consultation

Trustees are routinely faced with problems that need solutions, many of which are significant with no clear or easy resolution within reach. Both onshore and offshore, the Public Trustee v Cooper jurisdiction offers a helpful set of court-assisted solutions for a number of different types of issues encountered by trustees. But to what extent should beneficiaries of trusts be able to weave their way into the issue-resolution and decision-making processes, and just how far (and for how long) should the trustee remain engaged in that process? Recent decisions of the Cayman Islands courts offer some helpful guidance in this regard.