Emily Jenkins and Sam Harkness examine the trustee’s duty to account Chief Master Marsh found that in order for the court to make an order for an account (in common form) to be taken, a beneficiary has to show that an account has not been produced or that the account produced is inadequate. Among the …
Continue reading "Trustees: The necessaries"
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Elizabeth Ovey examines the position on the exercise of discretionary powers for an improper purpose ‘In practice, it does not usually matter whether a restriction not expressed in the relevant instrument is imposed as an implied term through a process of construction or by reference to the improper purpose test; in either case the exercise …
Continue reading "Trustees: Unanswered questions"
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Gareth Thomas considers the refusal of Beddoe relief in a case with circumstances that will be familiar to practitioners ‘This is a useful decision for practitioners addressing a common factual scenario of adult beneficiaries having fallen into dispute over alleged estate assets, the procuring of which would, without a derivative claim, be the responsibility of …
Continue reading "Trustees: Adult-appropriate"
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Adam Carvalho and Joseph de Lacey examine the priority of trustee indemnities ‘The original trustee argued that a pari passu approach was wrong in law, and that its claim had priority over the other creditors of the Z II Trust.’ Readers will of course know that trustees have a right to be indemnified for costs …
Continue reading "Trustees: First in time, first in line?"
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Wills & Trusts Law Reports | Summer 2019 #175Introduction
W, who died some years ago, established several settlements (referred to generally as ‘the General Family Trusts’), either directly or by trustees to whom he had provided funds. The value of the General Family Trusts was very substantial indeed. W had been married several times and had a large family. A representation was issued in respect of two of the General Family Trusts: the Y Trust and the Z Trust. The trustee companies of both of the trusts were amongst the respondents.
It had been W’s wish that after his death, in the administration of ...
The Privy Council has clarified the operation of the rule in Hastings-Bass and how the beneficial ownership of gratuitously transferred assets should be determined. Alan Boyle QC, Richard Wilson QC and Zahler Bryan discuss ‘On the facts of this case MAR’s intention was sufficient, because at the material time MAR was also the governing mind …
Continue reading "Trustees: Relief from flawed decisions"
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A recent case illuminates when a trustee can enter into a commercial transaction and the scope of s57 of the Trustee Act 1925. Adam Carvalho and Joseph de Lacey highlight the key points ‘The court did not need to agree that the trustee’s decision was “right”, but just that the decision fell within a range …
Continue reading "Trustees: Judicial blessings"
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The Privy Council has given welcome guidance on the rights of trustees of Jersey and Guernsey law trusts. Nick Robison reports ‘It will comfort beneficiaries (and settlors) knowing that assets settled into trust may not be attacked by a third-party creditor of the trustee, without consideration of the trustee’s role.’ On 23 April 2018, the …
Continue reading "Trustees: Who is liable?"
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Wills & Trusts Law Reports | Summer 2018 #172A member of the company died in 2006, leaving his shares by his will to be held on trust. In 2007 the first petitioner and one other executor and trustee took out a grant. In 2014 the second executor and trustee was replaced by an order under s.50 Administration of Justice Act 1985.
By a deed dated 14 July 2015 the replacement executor and trustee himself retired as trustee and was replaced by the second petitioner. That deed did not expressly vest any assets in the new trustee, nor was there any evidence before the court that the deceased’s shares had been vested in the ...
Wills & Trusts Law Reports | Summer 2018 #172The claimant was the trustee of an employment benefit trust (the EBT). The trustee had an interest in a company that owned and controlled a business (the utility). The beneficiaries of the EBT were the former and current employees of the utility and other group companies and their dependants. The trustee entered into a sale and purchase agreement for the sale of the EBT’s interest in the company, conditional upon certain relief from the court. Following the sale, there would be a distribution of the trust property amongst various beneficiaries.
Held
The fol...
