Ludlow Trust Company Ltd v Homfray [2026] EWHC 1107 (Ch) (13 May 2026)

Ludlow Trust Company Ltd v Homfray [2026] EWHC 1107 (Ch) (13 May 2026)

The phrase 'trusts subsisting' in clause 6 of the settlement refers to trusts for which there are still beneficiaries, regardless of whether the original assets have been distributed. At Simon's death without issue, the trusts of both David's and Angela's Funds were still subsisting, so Simon's Fund is to be held on the trusts of both Funds equally. The trustee is also permitted to administer Angela's Fund on the footing that Angela will have no further children, given her age.

Citation
[2026] EWHC 1107 (Ch)
Parties
Claimant: Ludlow Trust Company Limited; Defendant: John Homfray
Jurisdiction
England and Wales
Judgment Date
13 May 2026
Procedural Posture
Part 8 Claim (cpr) for Construction of Trust Settlement / Trial Judgment
Outcome
Claim allowed in part; declaration granted as to construction of the settlement and trustee's powers.
Legal Topics
Construction of Trust Instruments, Cross Accruer Clauses, Variation of Trusts Act 1958, Beddoe Applications, Distribution of Trust Assets
Trusts and Estates Property Law Construction of Trust Instruments Cross Accruer Clauses Variation of Trusts Act 1958 Beddoe Applications Distribution of Trust Assets

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Parties

Ludlow Trust Company Limited

Claimant

John Homfray

Defendant

Procedural Posture

Part 8 Claim (cpr) for Construction of Trust Settlement / Trial Judgment

Legal Issues

  1. 1 Proper construction of the cross-accruer clause in a 1945 settlement trust
  2. 2 Meaning of 'subsisting' in clause 6 of the settlement
  3. 3 Whether the trusts of David's Fund were subsisting at Simon's death

Ratio Decidendi

The phrase 'trusts subsisting' in clause 6 of the settlement refers to trusts for which there are still beneficiaries, regardless of whether the original assets have been distributed. At Simon's death without issue, the trusts of both David's and Angela's Funds were still subsisting, so Simon's Fund is to be held on the trusts of both Funds equally. The trustee is also permitted to administer Angela's Fund on the footing that Angela will have no further children, given her age.

Court Disposition

Claim allowed in part; declaration granted as to construction of the settlement and trustee's powers.

Orders

  • Declare that the assets of Simon's Fund are since Simon's death held on the trusts of Angela's and David's Funds equally.
  • Declare that the claimant trustee may deal with the assets of Angela's Fund on the footing that Angela will not have any more children.