Trusts: Lost in translation

Ross Pizzuti-Davidson looks at interpreting foreign law concepts in English law trusts The court’s judgment in PTNZ in relation to the protector’s role may be a welcome clarification given the surprising lack of authority on the point of whether a protector’s consent rights are joint or review powers. International estate planners can find themselves playing …
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PTNZ v AS & ors [2020] WTLR 1423

Wills & Trusts Law Reports | Winter 2020 #181

In the course of the claimant’s application as trustee of four discretionary trusts in similar terms governed by English law for the blessing of momentous decisions, AS (the settlor and the original protector of the trusts) died.

The trusts had been varied soon after they were declared to expand the powers of the protector to give and withhold consent to the exercise of powers by the trustee. In the absence of a protector the trustee was free to exercise those powers without obtaining a third-party consent. The trusts were administered in Jersey on behalf of the claimant, a profes...

A v B & ors FSD 56 of 2019 (RMJ)

Wills & Trusts Law Reports | Summer 2020 #179

The plaintiff trustees of a discretionary trust governed by Cayman law sought a declaration concerning the power of variation conferred by the trust instrument, and which was in the following terms:

‘The Trustees may, with the consent of the Settlor during his lifetime, at any time and from time to time by instrument in writing vary, add to, revise or modify, the terms and conditions of this Settlement except that no such amendment may be made which either changes any Beneficiary hereunder or alters that [sic] terms of clause (I) of subsection 3.4 of this Settlement.’

...

HSBC v Tan Poh Lee & ors FSD 175 of 2019 (IJK)

Wills & Trusts Law Reports | Summer 2020 #179

The plaintiff trustee applied for Beddoe relief authorising it to defend proceedings brought by one of the secondary beneficiaries of the trust in the Singapore High Court to terminate the trust. It sought permission to defend both on the substance and to challenge the Singapore court’s jurisdiction on the ground of forum non conveniens, since the trust was governed by Cayman law and the Cayman Islands was the forum for administration of the trust. The Singapore proceedings alleged that refusal to comply with the plaintiff beneficiary’s demands for distribution constitu...

Offshore: Count your blessings

The Jersey Royal Court’s recent refusal to ‘bless’ actions by the trustee shows that court approval cannot be taken for granted. James Sheedy sets out key points to consider ‘The trustee’s application for a blessing of its decision to liquidate the structure was refused on the basis (among others) that the trustee had not adequately …
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Charities: The limits of discretion

The Court of Appeal has indicated the extent to which it will control the exercise of discretion by fiduciaries. Robert Pearce QC discusses ‘The Chancellor’s decisions that the grant was in the best interests of the charity and his direction to L to vote in favour of it were given simultaneously, giving L no opportunity …
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Trustees: Judicial blessings

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 …
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Re A’s Application


Wills & Trusts Law Reports | Summer 2018 #172

The trustee applied under s61 of the Isle of Man Trustee Act 1961, alternatively under the court’s inherent jurisdiction, for the opinion, advice or direction of the court in relation to its intention to negotiate with a foreign revenue authority for the discharge of tax liabilities of the settlement, the disclosure of information necessary for that purpose, and the payment of the tax irrespective of whether they are enforceable in the Isle of Man. The beneficiaries agreed with the relief sought.



Held, allowing the application:


  1. 1) Trustees were en...

South Downs Trustees Limited v GH [2018] EWHC 1064 (Ch)

Wills & Trusts Law Reports | Summer 2018 #172

The 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 following orders ...

The ‘without prejudice‘ rule: A sacred right?

The Royal Court of Guernsey has dismissed an application to admit privileged communications. Joseph de Lacey discusses ‘In order to test the decision-making process, D applied for disclosure of documents evidencing the decision and the decision-making process, permission to adduce expert evidence as to the trusts‘ value, and permission to cross-examine the trustees.‘ The Royal …
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