Chalmers v. Chalmers Alter Ego Trust

Chalmers v. Chalmers Alter Ego Trust

The court held the April 14, 2014 alter ego trust was a valid and properly constituted resettlement of the June 21, 2007 trust because the settlor, who was also the trustee, intended and acted as trustee in creating the 2014 trust, the beneficiaries were substantially the same, and a declaration of trust sufficed without further formal transfer; the March 2015 amendments executed by the petitioner under power of attorney were invalid as not reflecting the settlor's intentions.

Citation
2017 BCSC 2646
Parties
Petitioner: Duncan Andrew Chalmers; Respondent Successor Co‑trustee: David S. Shymko; Respondent Successor Co‑trustee: Ian R. Black; Respondent Proposed Successor Trustee: Solus Trust Company Limited; Respondent Beneficiary and Executor: Cameron David Chalmers; Respondent Beneficiary: Gordon Robert Chalmers; Respondent Beneficiary: Colleen Elizabeth Chalmers; Respondent Beneficiary: Kristen Chalmers; Respondent Beneficiary: Quentin Bryce Krez Chalmers; Respondent Beneficiary: Daphne Paulina Mary Chalmers; Respondent Beneficiary: Paulina Cynthia Christine Chalmers
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
18 July 2017
Procedural Posture
Declaration Regarding Validity and Effect of Alter Ego Trusts / Judgment (oral Reasons in Chambers)
Outcome
Declaration granted that 2014 alter ego trust is valid; 2007 trust no longer of legal force or effect as its assets were resettled into 2014 trust
Legal Topics
Alter Ego Trust, Resettlement of Trust, Constitution of Trust, Power of Attorney, Trustee Appointment, Declaration of Trust
Source Language
English
Trusts Estates Property Succession Taxation Alter Ego Trust Resettlement of Trust Constitution of Trust +3 more

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Parties

Duncan Andrew Chalmers

Petitioner

David S. Shymko

Respondent Successor Co‑trustee

Ian R. Black

Respondent Successor Co‑trustee

Solus Trust Company Limited

Respondent Proposed Successor Trustee

Cameron David Chalmers

Respondent Beneficiary and Executor

Gordon Robert Chalmers

Respondent Beneficiary

Colleen Elizabeth Chalmers

Respondent Beneficiary

Kristen Chalmers

Respondent Beneficiary

Quentin Bryce Krez Chalmers

Respondent Beneficiary

Daphne Paulina Mary Chalmers

Respondent Beneficiary

Paulina Cynthia Christine Chalmers

Respondent Beneficiary

Procedural Posture

Declaration Regarding Validity and Effect of Alter Ego Trusts / Judgment (oral Reasons in Chambers)

Legal Issues

  1. 1 Which of two alter ego trusts (2007 v. 2014) was operative at settlor's death
  2. 2 Whether the 2014 trust constituted a valid resettlement of the 2007 trust under clause 3.7 and clause 4(g)
  3. 3 Whether assets were validly transferred or whether declaration of trust sufficed

Ratio Decidendi

The court held the April 14, 2014 alter ego trust was a valid and properly constituted resettlement of the June 21, 2007 trust because the settlor, who was also the trustee, intended and acted as trustee in creating the 2014 trust, the beneficiaries were substantially the same, and a declaration of trust sufficed without further formal transfer; the March 2015 amendments executed by the petitioner under power of attorney were invalid as not reflecting the settlor's intentions.

Court Disposition

Declaration granted that 2014 alter ego trust is valid; 2007 trust no longer of legal force or effect as its assets were resettled into 2014 trust

Orders

  • Declaration that the Elizabeth Chalmers alter ego trust made April 14, 2014 is a properly constituted and valid trust
  • Declaration that the Elizabeth Chalmers alter ego trust made June 21, 2007 is no longer of legal force or effect because assets previously held in the 2007 trust were settled into the 2014 trust