Wright & Anor v Gater & Ors [2011] EWHC 2881 (Ch) (07 November 2011)

Wright & Anor v Gater & Ors [2011] EWHC 2881 (Ch) (07 November 2011)

The revised arrangement, which staggers Rory's entitlement to income and capital at ages 18, 21, and 25, is a proportionate response to the risks posed by immediate access to substantial wealth at 18, and is for Rory's benefit within the meaning of the Variation of Trusts Act 1958. The original proposal to defer vesting to 30 was not justified on the facts and would have amounted to a resettlement rather than a variation.

Citation
[2011] EWHC 2881 (Ch)
Parties
Claimant: Ellen Martha Frances Wright; Claimant: Michael Robert Greenstreet; Defendant: Jonathan Brian Gater; Defendant: Rory Joseph Greenstreet
Jurisdiction
England and Wales
Judgment Date
07 November 2011
Procedural Posture
Variation of Trusts Act 1958 Application / Judgment on Application for Approval of Arrangement
Outcome
Approved revised arrangement; original arrangement not approved.
Legal Topics
Variation of Trusts, Intestacy, Inheritance Tax, Statutory Trusts, Beneficiary Interests
Trusts and Estates Taxation Variation of Trusts Intestacy Inheritance Tax Statutory Trusts Beneficiary Interests

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Parties

Ellen Martha Frances Wright

Claimant

Michael Robert Greenstreet

Claimant

Jonathan Brian Gater

Defendant

Rory Joseph Greenstreet

Defendant

Procedural Posture

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

Legal Issues

  1. 1 Whether the court should approve a variation of trust arrangement postponing vesting of a minor beneficiary's interest beyond age 18 under the Variation of Trusts Act 1958
  2. 2 Whether the proposed arrangement is for the benefit of the minor beneficiary as required by statute

Ratio Decidendi

The revised arrangement, which staggers Rory's entitlement to income and capital at ages 18, 21, and 25, is a proportionate response to the risks posed by immediate access to substantial wealth at 18, and is for Rory's benefit within the meaning of the Variation of Trusts Act 1958. The original proposal to defer vesting to 30 was not justified on the facts and would have amounted to a resettlement rather than a variation.

Court Disposition

Approved revised arrangement; original arrangement not approved.

Orders

  • The court approves the revised arrangement varying the trusts so that Rory becomes entitled to income at 18, 10% of capital at 21, and the balance at 25, with appropriate default and advancement provisions.