Goulding & Anor v James & Anor [1996] EWCA Civ 1156 (10 December 1996)

Goulding & Anor v James & Anor [1996] EWCA Civ 1156 (10 December 1996)

The court's discretion under the Variation of Trusts Act 1958 is limited only by the requirement that the arrangement be for the benefit of the specified class. Extrinsic evidence of the testatrix's intentions regarding adult beneficiaries is not relevant or weighty in the exercise of discretion for the benefit of unborn beneficiaries. The arrangement should be approved as it is greatly for the benefit of the unborn great grandchildren.

Citation
[1996] EWCA Civ 1156
Parties
Appellant: Mrs June Goulding; Appellant: Mr. Marcus Goulding; Trustee/respondent: Mr. John James; Trustee/respondent: Mr. Peter Daniel
Jurisdiction
England and Wales
Judgment Date
10 December 1996
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
appeal allowed
Legal Topics
Variation of Trusts, Beneficiary Rights, Testator Intentions, Inheritance Tax Act 1984, Variation of Trusts Act 1958
Trusts Estate Administration Inheritance Variation of Trusts Beneficiary Rights Testator Intentions Inheritance Tax Act 1984 Variation of Trusts Act 1958

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Parties

Mrs June Goulding

Appellant

Mr. Marcus Goulding

Appellant

Mr. John James

Trustee/respondent

Mr. Peter Daniel

Trustee/respondent

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the court should approve a variation of trust arrangement under the Variation of Trusts Act 1958 for the benefit of unborn beneficiaries despite extrinsic evidence of the testatrix's intentions.
  2. 2 Whether the subjective intentions and wishes of the testatrix are relevant to the exercise of the court's discretion under section 1 of the 1958 Act.

Ratio Decidendi

The court's discretion under the Variation of Trusts Act 1958 is limited only by the requirement that the arrangement be for the benefit of the specified class. Extrinsic evidence of the testatrix's intentions regarding adult beneficiaries is not relevant or weighty in the exercise of discretion for the benefit of unborn beneficiaries. The arrangement should be approved as it is greatly for the benefit of the unborn great grandchildren.

Court Disposition

appeal allowed

Orders

  • leave to adduce further evidence granted
  • original arrangement approved on behalf of unborn great grandchildren