A & Ors v B & Ors [2016] EWHC 340 (Ch) (25 February 2016)

A & Ors v B & Ors [2016] EWHC 340 (Ch) (25 February 2016)

It is proper for the Trustees to partially release their powers to exclude remote beneficiaries from the need for representation or consent, as the variation is for the benefit of the core beneficiaries and does not constitute a fraud on a power. The court's discretion allows approval of the arrangement without requiring representation of the wider class, given the remoteness of their interests and the benefit to the trust as a whole.

Citation
[2016] EWHC 340 (Ch)
Parties
Claimants: A and others; Defendants: B and others; Defendants: 8th to 11th Defendants; Defendants/trustees: 12th and 13th Defendants
Jurisdiction
England and Wales
Judgment Date
25 February 2016
Procedural Posture
Variation of Trusts Act 1958 Application / Judgment on Application to Approve Variation of Trusts
Outcome
Application granted; arrangement approved.
Legal Topics
Variation of Trusts, Perpetuity Period Extension, Trustee Powers, Beneficiary Representation
Trusts and Estates Equity Variation of Trusts Perpetuity Period Extension Trustee Powers Beneficiary Representation

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Parties

A and others

Claimants

B and others

Defendants

8th to 11th Defendants

Defendants

12th and 13th Defendants

Defendants/trustees

Procedural Posture

Variation of Trusts Act 1958 Application / Judgment on Application to Approve Variation of Trusts

Legal Issues

  1. 1 Whether the court should approve a variation of trusts extending the perpetuity period and altering administrative provisions under the Variation of Trusts Act 1958
  2. 2 Whether the interests of remote or unascertained beneficiaries require representation or consent for the variation to be effective

Ratio Decidendi

It is proper for the Trustees to partially release their powers to exclude remote beneficiaries from the need for representation or consent, as the variation is for the benefit of the core beneficiaries and does not constitute a fraud on a power. The court's discretion allows approval of the arrangement without requiring representation of the wider class, given the remoteness of their interests and the benefit to the trust as a whole.

Court Disposition

Application granted; arrangement approved.

Orders

  • Arrangement varying the trusts is approved under the Variation of Trusts Act 1958.
  • Trustees authorised to execute deeds implementing the arrangement, including extension of perpetuity period and administrative changes.