A & Ors v B & Ors

A & Ors v B & Ors

The court approved the arrangement as the partial release of powers by trustees was proper, not a fraud on the power, and eliminated the need for representation of remote beneficiaries. The arrangement benefits both core and wider classes by preserving assets and extending the trust period.

Parties
Claimants: A and others; Defendants: B and others; Minor Defendants: 8th to 11th Defendants; Trustees: 12th and 13th Defendants
Jurisdiction
England and Wales
Judgment Date
25 February 2016
Procedural Posture
Variation of Trusts Act Application / Judgment on Approval of Arrangement
Outcome
Arrangement approved
Legal Topics
Variation of Trusts, Perpetuity Periods, Beneficiary Representation, Fiduciary Powers
Trusts and Estates Variation of Trusts Perpetuity Periods Beneficiary Representation Fiduciary Powers

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Parties

A and others

Claimants

B and others

Defendants

8th to 11th Defendants

Minor Defendants

12th and 13th Defendants

Trustees

Procedural Posture

Variation of Trusts Act Application / Judgment on Approval of Arrangement

Legal Issues

  1. 1 Whether the court can approve a variation of trusts affecting remote beneficiaries without their representation
  2. 2 Whether partial release of powers by trustees is proper and not a fraud on the power
  3. 3 Whether the arrangement extending the perpetuity period and administrative powers is for the benefit of core and wider beneficiaries

Ratio Decidendi

The court approved the arrangement as the partial release of powers by trustees was proper, not a fraud on the power, and eliminated the need for representation of remote beneficiaries. The arrangement benefits both core and wider classes by preserving assets and extending the trust period.

Court Disposition

Arrangement approved

Orders

  • Trustees to execute three deeds releasing powers as described in the arrangement
  • Arrangement takes effect upon execution of deeds by trustees