Hassan El-Jamal [2021] NSWSC 114

Hassan El-Jamal [2021] NSWSC 114

The plaintiff as trustee has properly invoked the jurisdiction to seek judicial advice and, given potential tax liabilities and lack of beneficiary's indemnity, is justified in applying for judicial sale of the trust property to secure his right of indemnity out of the trust assets.

Parties
Plaintiff: Hassan El-Jamal
Jurisdiction
Australia
Judgment Date
12 February 2021
Procedural Posture
Judicial Advice Application Under Trustee Act / Principal Judgment Ex Tempore
Outcome
Judicial advice given; costs order made
Legal Topics
Trusts, Judicial Advice, Trustee Powers, Judicial Sale
Equity Trusts Judicial Advice Trustee Powers Judicial Sale

Case Brief

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Parties

Hassan El-Jamal

Plaintiff

Procedural Posture

Judicial Advice Application Under Trustee Act / Principal Judgment Ex Tempore

Legal Issues

  1. 1 Whether the trustee would be justified in applying for judicial sale of trust property
  2. 2 Whether the trustee is entitled to retain trust assets to secure indemnity for liabilities

Ratio Decidendi

The plaintiff as trustee has properly invoked the jurisdiction to seek judicial advice and, given potential tax liabilities and lack of beneficiary's indemnity, is justified in applying for judicial sale of the trust property to secure his right of indemnity out of the trust assets.

Court Disposition

Judicial advice given; costs order made

Orders

  • Order pursuant to s 63 of the Trustee Act 1925 (NSW) that the plaintiff be advised it is appropriate that he make an application seeking an order for judicial sale of the property at Casula the subject of the declaration of trust dated 15 December 2017.
  • Order that the costs of the application be paid out of the trust's assets.