Sprott Estate (Re)

Sprott Estate (Re)

The court has inherent jurisdiction to amend the administrative machinery of a charitable trust when the proposed variations are reasonable, prudent and in accordance with the charity’s purpose (the "spirit of the trust"); applying that principle, the court authorized two administrative variations that preserved and promoted the trust’s charitable purpose (making awards discretionary in years without outstanding candidates and removing the minimum age restriction) but refused to alter the contractually-prescribed method of trustee remuneration because that change did not implicate the spirit of the trust and would amount to altering a fixed entitlement for administrative efficiency.

Citation
2011 NSSC 327
Parties
Applicant / Trustee: University of Melbourne; Executor / Personal Representative: Royal Trust Corporation of Canada; Deceased / Testator: Samuel Ernest Sprott; Literary Executor / Personal Representative: Dr. Douglas Barbour
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
25 August 2011
Procedural Posture
Variation of Will / Charitable Trust Variation / Ex‑parte Application Heard February 21, 2011; Decision August 25, 2011
Outcome
Application granted in part
Legal Topics
Variation of Charitable Trust, Administrative Machinery of Trusts, Trustee Remuneration, Inherent Jurisdiction of Court, Cy Près Doctrine Applicability, Eligibility Criteria for Fellowships
Source Language
English
Charity Law Trusts Wills and Estates Equity Civil Procedure Variation of Charitable Trust Administrative Machinery of Trusts Trustee Remuneration +3 more

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Parties

University of Melbourne

Applicant / Trustee

Royal Trust Corporation of Canada

Executor / Personal Representative

Samuel Ernest Sprott

Deceased / Testator

Dr. Douglas Barbour

Literary Executor / Personal Representative

Procedural Posture

Variation of Will / Charitable Trust Variation / Ex‑parte Application Heard February 21, 2011; Decision August 25, 2011

Legal Issues

  1. 1 Whether the court has inherent jurisdiction to vary the administrative terms or machinery of a charitable trust
  2. 2 Whether the University’s three proposed amendments fall within the spirit of the trust and are reasonable and prudent
  3. 3 Whether the court can alter the manner of trustee remuneration where the trust instrument specifies a rate

Ratio Decidendi

The court has inherent jurisdiction to amend the administrative machinery of a charitable trust when the proposed variations are reasonable, prudent and in accordance with the charity’s purpose (the "spirit of the trust"); applying that principle, the court authorized two administrative variations that preserved and promoted the trust’s charitable purpose (making awards discretionary in years without outstanding candidates and removing the minimum age restriction) but refused to alter the contractually-prescribed method of trustee remuneration because that change did not implicate the spirit of the trust and would amount to altering a fixed entitlement for administrative efficiency.

Court Disposition

Application granted in part

Orders

  • Amend Will to permit the University to refrain from awarding the Fellowship in any year if no outstanding candidate is identified (award open for award annually at trustee discretion).
  • Amend Will to remove the minimum age requirement (no minimum age; eligible scholars must be under 45).