Trustee blessing applications in Guernsey: what trustees need to know

Blessing applications are an important feature of the Royal Court of Guernsey's supervisory jurisdiction over trusts, allowing trustees to seek judicial approval for momentous decisions.

In this article, Mathew Newman, Bryan de Verneuil-Smith and Tim Richards examine the approach of the Court to blessing applications, the legal test for approval and the practical requirements trustees should consider.

What is a blessing application?

In Guernsey, a trustee blessing application is normally a formal request made by a trustee to the Royal Court of Guernsey (the Court) under Section 68 of the Trusts (Guernsey) Law 2007 to bless a momentous decision that the trustee has arrived at.

The purpose of a blessing is to obtain judicial approval for a significant, complex or high-stakes decision. The effect of a blessing order from the Court is intended to protect the trustee from future breach-of-trust claims by beneficiaries in relation to the subject matter of the blessing application.

The legal framework and jurisdictional basis

Guernsey law follows the English law principles established in the landmark case of Public Trustee v Cooper [2001] WTLR 901.

There are four categories of Public Trustee v Cooper application:

1. whether the proposed action is within the trustee's powers

2. blessing a momentous decision

3. surrender of discretion

4. attack on exercise of trustee's powers, whereby the trustee seeks an order approving a decision it has already taken

Blessing applications fall under the second category of this framework and are commonly seen before the Guernsey Court. This means the trustee has already formed an "in principle" decision and is asking the Court to confirm that the choice is proper, rather than asking the Court to make the choice for them.

The legal test for approval

As established in the Guernsey cases of Re F (Guernsey Court of Appeal judgment 32/2013) and Re AAA Children's Settlement (judgment 2014), and affirmed in Re LKM (2016)(judgment 34/2016), the Royal Court of Guernsey does not act as a "rubber stamp". The Court will only bless a decision if it satisfies four core requirements:

Capacity and power

The trustee has the requisite legal power to make the decision under the trust instrument and the Trusts (Guernsey) Law 2007.

Good faith

The trustee has formed the opinion in good faith and for desirable, proper reasons.

Reasonableness

The decision is one that a reasonable body of trustees, properly informed, could have arrived at. The Court does not need to agree that it would have made the exact same choice, only that the choice falls within the bracket of rational options.

No conflict

The decision is not tainted by an actual or potential conflict of interest.

Trustee obligations and evidence

To secure a blessing order, trustees must satisfy a heavy evidentiary burden:

Full and frank disclosure

The trustee must present all material facts to the court, including any facts unfavourable to their position. If not, the blessing of the trustee's decision may not prevent a future breach of trust action by a beneficiary.

Evidence

The application should be backed by all relevant documentation (Kan v HSBC International Trustee Limited [2015] JCA 109), including detailed trustee minutes, formal resolutions spelling out the alternatives considered and, if relevant, expert legal or tax advice.

Beneficiary views

The trustee must show they have considered the views of any beneficiary or beneficiaries.

The English Court of Appeal decision in Denaxe Limited v Cooper [2024] Ch65 (Denaxe), suggested that a trustee might not have protection unless all affected parties are joined to the blessing action in question. Denaxe has not been followed by the Guernsey Court to date and has been criticised in a subsequent decision of the English High Court (Cator v Thynn [2026] EWHC 1045(Ch)).

Examples of momentous decisions

Trustees regularly seek blessings for high-magnitude decisions that fundamentally alter the trust structure or expose the estate to risk, such as:

• restructuring the trust or excluding / adding beneficiaries

• selling key underlying property, unique family assets or major business holdings

• commencing or settling high-value, contentious litigation

• onshoring an offshore trust to a higher-tax jurisdiction for moral, ethical or non-financial reasons requested by beneficiaries

Read more about the onshoring of Guernsey trusts here: Guernsey Royal Court blesses decision to onshore trusts

Dangers and pitfalls

If the blessing is refused a trustee may open itself up to a breach of trust claim.

For example, the Guernsey Bailiff refused to bless the decision of certain Guernsey trustees in April 2021 with Salem and Salem v Sequent (C.I.) Limited and others [2024] GCA064 (Salem). Subsequently, breach of trust proceedings were launched against the trustees in question and the Guernsey Bailiff was again appointed to hear the breach of trust claim as well.

The trustees asked the Bailiff to recuse himself from hearing the breach of trust claim but the Bailiff refused. The trustees appealed this refusal to the Guernsey Court of Appeal, arguing, amongst other things, that there was an appearance of bias because the Bailiff had made factual findings critical of the conduct of the trustees in the blessing application which would be highly relevant to the breach of trust claim. The Court of Appeal refused to order the recusal of the Bailiff.

If the judge in question does not recuse himself, it is apparent from Salem that a breach of trust claim may be heard by the same judge who dealt with a failed blessing application.

How Ogier can help

Blessing applications can play an important role in helping trustees manage risk when making significant decisions. Ogier regularly advises trustees on whether a blessing application is appropriate, the evidence required to support an application and the conduct of proceedings before the Royal Court of Guernsey.

If you have any queries or need assistance with the issues raised in this article, contact our experts via the details below.

About Ogier

Ogier is a professional services firm with the knowledge and expertise to handle the most demanding and complex transactions and provide expert, efficient and cost-effective services to all our clients. We regularly win awards for the quality of our client service, our work and our people.

Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

Regulatory information can be found under Legal Notice