Guillotine Clause

Prior to the September 11 attacks on the US, one could have an account at an offshore bank with a Guillotine Clause. If there were any enquiries made regarding any that account, the bank would immediately wire out all the funds to another offshore bank in another country according to the standing wire instructions. From there the person could move the funds again to make sure they were safe and sound from any legal entanglements. Such standing wiring instructions became illegal for a bank to use after 9/11.

It is important to note that a Guillotine Clause is illegal for the bank to implement, not the lawyer who is the Trustor. If the Trustor feels that the assets that they are entrusted with are in danger or at risk, they may take steps to keep them safe according to instructions and methods that have previously been agreed to in writing as part of the Trust Agreement.