Green & Ors v Cobham & Ors [2000] EWHC 1564 (Ch) (19 January 2000)

Green & Ors v Cobham & Ors [2000] EWHC 1564 (Ch) (19 January 2000)

The 1990 Deed is void because the trustees failed to consider the capital gains tax consequences of the appointment, and would not have made the appointment had they done so. The Hastings-Bass principle applies, requiring the court to declare the Deed void ab initio.

Citation
[2000] EWHC 1564 (Ch)
Parties
Claimants: Green and Others; Defendants: Cobhan and Others
Jurisdiction
England and Wales
Judgment Date
19 January 2000
Procedural Posture
Chancery Division Application for Declaratory Relief / Judgment on Application Regarding Validity of 1990 Deed
Outcome
1990 Deed declared void ab initio and of no effect.
Legal Topics
Trustee Powers, Capital Gains Tax, Hastings Bass Principle, Void Appointments, Accumulation and Maintenance Trusts
Trusts and Estates Tax Law Trustee Powers Capital Gains Tax Hastings Bass Principle Void Appointments Accumulation and Maintenance Trusts

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Parties

Green and Others

Claimants

Cobhan and Others

Defendants

Procedural Posture

Chancery Division Application for Declaratory Relief / Judgment on Application Regarding Validity of 1990 Deed

Legal Issues

  1. 1 Whether the 1990 Deed of Appointment is void under the Hastings-Bass principle due to trustees' failure to consider capital gains tax consequences
  2. 2 Whether the 1990 Deed is invalid for unlawful accumulation of income

Ratio Decidendi

The 1990 Deed is void because the trustees failed to consider the capital gains tax consequences of the appointment, and would not have made the appointment had they done so. The Hastings-Bass principle applies, requiring the court to declare the Deed void ab initio.

Court Disposition

1990 Deed declared void ab initio and of no effect.

Orders

  • Declaration that the deed of appointment dated 12 November 1990 (Camilla's appointment) is void ab initio and of no effect.
  • Claimants appointed to represent all persons (other than the fifth defendant) interested under the Will Trust, including unborn persons.