Wright & Anor v Gater & Ors

Wright & Anor v Gater & Ors

The court approved a revised arrangement, not the original proposal, because the revised arrangement constituted a true variation (not a resettlement), provided a proportionate and justified deferment of Rory’s entitlement to income and capital (with staged access at ages 18, 21, and 25), and addressed the risks associated with early access to significant wealth for a minor in the family context. The arrangement was found to be for Rory’s benefit, balancing financial and moral considerations, and did not go further than necessary.

Parties
Claimant / Personal Representative of Kieran John Greenstreet (deceased) / Litigation Friend of Rory Joseph Greenstreet: Ellen Martha Frances Wright; Claimant / Personal Representative of Kieran John Greenstreet (deceased): Michael Robert Greenstreet; Defendant / Personal Representative of Edward John Greenstreet (deceased) / Administrator Ad Colligenda Bona: Jonathan Brian Gater; Defendant / Beneficiary: Rory Joseph Greenstreet (a minor, acting by his mother and litigation friend Ellen Martha Frances Wright)
Jurisdiction
England and Wales
Judgment Date
07 November 2011
Procedural Posture
Variation of Trusts / Estate Administration / Judgment on Application for Approval of Arrangement Under Variation of Trusts Act 1958
Outcome
Application for approval of the original arrangement refused; revised arrangement approved.
Legal Topics
Variation of Trusts, Intestacy, Inheritance Tax, Trustee Powers, Beneficiary Interests
Trusts and Estates Taxation Family Law Variation of Trusts Intestacy Inheritance Tax Trustee Powers Beneficiary Interests

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Parties

Ellen Martha Frances Wright

Claimant / Personal Representative of Kieran John Greenstreet (deceased) / Litigation Friend of Rory Joseph Greenstreet

Michael Robert Greenstreet

Claimant / Personal Representative of Kieran John Greenstreet (deceased)

Jonathan Brian Gater

Defendant / Personal Representative of Edward John Greenstreet (deceased) / Administrator Ad Colligenda Bona

Rory Joseph Greenstreet (a minor, acting by his mother and litigation friend Ellen Martha Frances Wright)

Defendant / Beneficiary

Procedural Posture

Variation of Trusts / Estate Administration / Judgment on Application for Approval of Arrangement Under Variation of Trusts Act 1958

Legal Issues

  1. 1 Whether the court should approve a variation of trust arrangement under the Variation of Trusts Act 1958 for the benefit of a minor beneficiary (Rory) to defer vesting and entitlement to income/capital beyond the statutory trust terms, in order to achieve inheritance tax savings and address concerns about early access to wealth.

Ratio Decidendi

The court approved a revised arrangement, not the original proposal, because the revised arrangement constituted a true variation (not a resettlement), provided a proportionate and justified deferment of Rory’s entitlement to income and capital (with staged access at ages 18, 21, and 25), and addressed the risks associated with early access to significant wealth for a minor in the family context. The arrangement was found to be for Rory’s benefit, balancing financial and moral considerations, and did not go further than necessary.

Court Disposition

Application for approval of the original arrangement refused; revised arrangement approved.

Orders

  • Approval of revised arrangement under the Variation of Trusts Act 1958 as set out in the judgment, with staged entitlement for Rory at ages 18 (income), 21 (10% capital), and 25 (balance of capital).