Dépeçage in trust structures: separating governing law from administrative law in cross-border trusts

Abstract This article examines the legal feasibility and practical utility of bifurcating the proper law of a trust—a structure in which the law governing the substantive and dispositive provisions differs from the law governing the trustees’ administrative powers and conduct. Drawing on the Recognition of Trusts Act 1987 and the Hague Convention, it analyses the theoretical foundations of bifurcation, the critical distinction between dispositive and administrative powers, before examining Wyoming’s statutory framework under the Uniform Trust Code as a model administrative jurisdiction. This article addresses essential drafting considerations alongside the key UK and, to a lesser extent, the U.S. tax consequences of the structure, and concludes with a critical assessment of its challenges, limitations, and optimal use cases.