is highly controversial. Investec are arguing for an interpretation which would generously favour trustees and even go so far as allowing them to leave it to their lawyers to dictate and control legal spend, which for a regulated entity is nothing less than extraordinary. If such an approach was to find favour with the Royal Court, settlors and beneficiaries would be well advised to consider whether they ultimately have the protections they thought they did, and reforms directed towards the incurrence of trust related expenses and in particular controls in respect of litigation costs may well be needed. In England and Wales Cost-Capping Orders are available to parties in litigation involving trusts and courts regularly encourage or order litigants to engage in alternative dispute resolution. If a trustee (or former trustee) incurs legal fees without regard to the overall expense to the trust, then it is quite likely that it will carry the majority of those costs itself as recovery would be limited. With various reforms in England and Wales aimed at keeping litigation costs reasonable, it is high time for the lawmakers of the Channel Islands to follow suit and ensure that trustees (and their lawyers) are not given an open cheque book to spend trust funds in litigation without regard to the value of trust assets at their disposal or the interests of the true owners of those assets. Switzerland and Liechtenstein Switzerland and Liechtenstein are noteworthy for large banking sectors and sophisticated wealth management services. While both countries now recognize trusts (particularly trusts established under the laws of another jurisdiction, such as Nevis), there is no available case law yet which indicates how the courts of those two countries will enforce offshore asset protection trust laws. Many attorneys establish asset protection trusts under the laws of another country and deposit the trust assets in Switzerland or Liechtenstein. One question raised by this approach is whether a creditor can seize assets in Switzerland or Liechtenstein without having to bring a claim in the trust-protective jurisdiction. Again, a lack of precedent suggests that this is an open issue in Switzerland and Liechtenstein. Both countries are also known for offering asset protection annuities, with a six-month statute of limitations on fraudulent transfers into an annuity. Unfortunately for most Americans, these annuities cannot invest in US securities without punitive taxation due to the offshore status of the insurance carriers that offer