Wylie (Trustee), in the matter of Fuller v Fuller [2000] FCA 1512

Wylie (Trustee), in the matter of Fuller v Fuller [2000] FCA 1512

The assets of the Vilnius Trust, including the loan to the Wilkinsons, were not held on a bare trust for Mr Fuller. The trust deed was not a sham, and St Helier's compliance with Mr Fuller's wishes did not convert the discretionary trust into a bare trust for Mr Fuller. As Mr Fuller was not a named beneficiary and the trust acted according to its discretionary terms, the assets did not form part of the bankrupt estate. The application was therefore dismissed.

Parties
First Applicant: Hugh Jenner Wily as Trustee of the Bankrupt Estate of Michael John Fuller; Second Applicant: M J Fuller Services Pty Limited (In Liquidation); First Respondent: Laima Ann Fuller; Second Respondents: Lynn Wilkinson and Nora Wilkinson; Third Respondent: Michael John Fuller
Jurisdiction
Australia
Judgment Date
27 October 2000
Procedural Posture
Bankruptcy / Trusts Application / Final Judgment
Outcome
Application dismissed
Legal Topics
Bare Trusts, Discretionary Trusts, Parties to Proceedings, Bankrupt Estate Property, Joinder and Removal of Parties, Sham Trust, Exercise of Trustee Powers
Equity Bankruptcy Trusts Practice and Procedure Bare Trusts Discretionary Trusts Parties to Proceedings Bankrupt Estate Property +3 more

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Parties

Hugh Jenner Wily as Trustee of the Bankrupt Estate of Michael John Fuller

First Applicant

M J Fuller Services Pty Limited (In Liquidation)

Second Applicant

Laima Ann Fuller

First Respondent

Lynn Wilkinson and Nora Wilkinson

Second Respondents

Michael John Fuller

Third Respondent

Procedural Posture

Bankruptcy / Trusts Application / Final Judgment

Legal Issues

  1. 1 Whether the discretionary trust (Vilnius Trust) was in reality a bare trust for the bankrupt (Michael John Fuller) and therefore available to the trustee in bankruptcy as part of the estate
  2. 2 Whether the trustee of the Channel Islands trust, St Helier, was a necessary party to the proceedings
  3. 3 Whether the application should be dismissed as against certain parties, including Mr Fuller

Ratio Decidendi

The assets of the Vilnius Trust, including the loan to the Wilkinsons, were not held on a bare trust for Mr Fuller. The trust deed was not a sham, and St Helier's compliance with Mr Fuller's wishes did not convert the discretionary trust into a bare trust for Mr Fuller. As Mr Fuller was not a named beneficiary and the trust acted according to its discretionary terms, the assets did not form part of the bankrupt estate. The application was therefore dismissed.

Court Disposition

Application dismissed

Orders

  • The application be dismissed.
  • The applicants pay the second respondent's costs.