MacNeil Estate (Re)

Parties

Procedural Posture

Application Under the Variation of Trusts Act / Decision (application Granted)

Legal Issues

1. 1 Whether the court should approve a variation of a testamentary trust under the Variation of Trusts Act
2. 2 Whether early distribution to a minor beneficiary for educational purposes is consistent with the settlor's intentions
3. 3 Whether the proposed variation benefits the applicant and prejudices the contingent beneficiary or the administration of the trust

Ratio Decidendi

The court determined the proposed early distributions provided a clear educational benefit to the minor beneficiary, and with protective measures (life insurance naming the estate, parental guarantees, prepayment of premiums and indemnities to protect trustee and estate) the variation would not be detrimental to the contingent beneficiary or administration of the trust; accordingly the court exercised its discretion under the Variation of Trusts Act to approve the variation and direct specified distributions.

Court Disposition

Application granted

Orders

• The Trust is varied and the trustee, Frank Bettens, is directed to distribute funds in the amount of $35,910.00 in advance of each of the 2015-2016 and 2016-2017 academic years, so long as the Applicant maintains a $30,000 bursary for each of those academic years.
• If the Applicant does not maintain a $30,000 bursary for the 2016-2017 academic year but continues to attend Ridley College, the trustee, Frank Bettens, is directed to distribute the funds required to pay tuition for that academic year, in an amount not to exceed an additional $30,000 ($65,910 in total).