X v A & Ors

X v A & Ors

The proposed transaction could not be said to be for the benefit of the wife as required by the trust instrument and authorities, as it did not relieve her of a moral obligation she would otherwise have to discharge from her own resources, nor did it improve her material situation. Even if the power could in principle be exercised for such a purpose, the trustees had not demonstrated sufficient consideration of the interests of other beneficiaries.

Parties
Claimant: X; Defendant: A; Defendant: Others; Defendant: Third to Seventh Defendants
Jurisdiction
England and Wales
Judgment Date
29 November 2005
Procedural Posture
Trusts Application / Judgment on Trustees' Application for Directions
Outcome
Application refused
Legal Topics
Exercise of Trustees' Powers, Advancement of Trust Capital, Charitable Gifts From Trusts, Interpretation of Trust Instruments
Trusts Equity Exercise of Trustees' Powers Advancement of Trust Capital Charitable Gifts From Trusts Interpretation of Trust Instruments

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Parties

X

Claimant

A

Defendant

Others

Defendant

Third to Seventh Defendants

Defendant

Procedural Posture

Trusts Application / Judgment on Trustees' Application for Directions

Legal Issues

  1. 1 Whether trustees can exercise powers of revocation and re-appointment to release substantial trust capital to the life tenant for charitable purposes
  2. 2 Whether such exercise is for the benefit of the life tenant within the meaning of the trust instrument

Ratio Decidendi

The proposed transaction could not be said to be for the benefit of the wife as required by the trust instrument and authorities, as it did not relieve her of a moral obligation she would otherwise have to discharge from her own resources, nor did it improve her material situation. Even if the power could in principle be exercised for such a purpose, the trustees had not demonstrated sufficient consideration of the interests of other beneficiaries.

Court Disposition

Application refused

Orders

  • Trustees are not at liberty to enter into the proposed transaction.
  • Trustees and the third to seventh defendants are entitled to their costs out of the fund on the indemnity basis.