Bruxner [2010] NSWSC 718

Bruxner [2010] NSWSC 718

Given the renunciation of the life interest by Mrs Pratten, her evidence that she will not bear or adopt further children, and proffered undertakings by the children to account for future beneficiaries, the trustees would be justified in winding up the trust and distributing assets to the four children in equal shares.

Parties
First Plaintiff, Trustee: Angus James Bruxner; Second Plaintiff, Trustee: Christopher John Morgan-Hunn; Third Plaintiff, Life Tenant: Rosemary Pratten; Fourth Plaintiff, Beneficiary/child: Anne Sinclair Hunter; Fifth Plaintiff, Beneficiary/child: Belinda Morgan Pratten; Sixth Plaintiff, Beneficiary/child: John Samuel Pratten; Seventh Plaintiff, Beneficiary/child: Nicola Palmer Pratten
Jurisdiction
Australia
Judgment Date
30 April 2010
Procedural Posture
Application for Judicial Advice / Directions to Trustees / Judgment on Application for Advice Under Trustee Act 1925, S 63
Outcome
Advice given in favour of the trustees' proposed course; costs to be paid from trust fund.
Legal Topics
Trustee Powers and Advice, Winding Up of Trusts, Life Interest Renunciation, Distribution to Beneficiaries, Closure of Beneficiary Class
Equity Trusts and Estates Procedural Law Trustee Powers and Advice Winding Up of Trusts Life Interest Renunciation Distribution to Beneficiaries Closure of Beneficiary Class

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Parties

Angus James Bruxner

First Plaintiff, Trustee

Christopher John Morgan-Hunn

Second Plaintiff, Trustee

Rosemary Pratten

Third Plaintiff, Life Tenant

Anne Sinclair Hunter

Fourth Plaintiff, Beneficiary/child

Belinda Morgan Pratten

Fifth Plaintiff, Beneficiary/child

John Samuel Pratten

Sixth Plaintiff, Beneficiary/child

Nicola Palmer Pratten

Seventh Plaintiff, Beneficiary/child

Procedural Posture

Application for Judicial Advice / Directions to Trustees / Judgment on Application for Advice Under Trustee Act 1925, S 63

Legal Issues

  1. 1 Whether trustees are justified in winding up the Rosemary Pratten Trust and distributing its assets to the children following the life tenant's renunciation of her interest
  2. 2 Whether the class of residuary beneficiaries is closed upon renunciation, given the possibility of further children or adoption

Ratio Decidendi

Given the renunciation of the life interest by Mrs Pratten, her evidence that she will not bear or adopt further children, and proffered undertakings by the children to account for future beneficiaries, the trustees would be justified in winding up the trust and distributing assets to the four children in equal shares.

Court Disposition

Advice given in favour of the trustees' proposed course; costs to be paid from trust fund.

Orders

  • Trustees would be justified in winding up the trust and distributing assets to the four children in equal shares following renunciation of life interest by Mrs Pratten, contingent upon undertakings being filed by the children to account for any further children.
  • Plaintiffs' costs to be paid out of the trust fund.