CHU WAI TUNG v. WONG KA SEK AND ANOTHER

CHU WAI TUNG v. WONG KA SEK AND ANOTHER

The Living Trust Agreement did not create any present beneficial interest in the son; its terms expressly vested enjoyment of trust assets in the grantors/trustees during their lifetimes and only contemplated distribution on their deaths, so the son held at best a future/reversionary interest; consequently the Property formed part of the bankrupt's estate and the trustees' decision was correct, warranting dismissal of the summons.

Citation
CHU WAI TUNG v. WONG KA SEK AND ANOTHER
Parties
Applicant (bankrupt): Chu Wai Tung; Respondents (joint and Several Trustees): Wong Ka Sek and Wong Ka Lam King
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
24 August 2017
Case Number
HCB4839/2016
Procedural Posture
Bankruptcy Proceedings / Decision on Summons After Hearing (application to Determine Validity of Living Trust and Exclusion of Property From Estate)
Outcome
Summons dismissed
Legal Topics
Living Trust Validity, Inclusion/exclusion From Bankrupt Estate, Locus Standi Under Bankruptcy Ordinance, Recognition of Trusts, Future Vs Present Beneficial Interest
Source Language
EN
Bankruptcy Law Trust Law Property Law Conflict of Laws Living Trust Validity Inclusion/exclusion From Bankrupt Estate Locus Standi Under Bankruptcy Ordinance Recognition of Trusts +1 more

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Parties

Chu Wai Tung

Applicant (bankrupt)

Wong Ka Sek and Wong Ka Lam King

Respondents (joint and Several Trustees)

Procedural Posture

Bankruptcy Proceedings / Decision on Summons After Hearing (application to Determine Validity of Living Trust and Exclusion of Property From Estate)

Legal Issues

  1. 1 Whether the Living Trust Agreement created a present trust interest in favour of the son such that the Property was excluded from the bankrupt's estate
  2. 2 Whether the bankrupt had locus to challenge the trustees' decision under s83 or s43D of the Bankruptcy Ordinance
  3. 3 Whether the Recognition of Trusts Ordinance / Hague Convention provisions were applicable to a domestic trust

Ratio Decidendi

The Living Trust Agreement did not create any present beneficial interest in the son; its terms expressly vested enjoyment of trust assets in the grantors/trustees during their lifetimes and only contemplated distribution on their deaths, so the son held at best a future/reversionary interest; consequently the Property formed part of the bankrupt's estate and the trustees' decision was correct, warranting dismissal of the summons.

Court Disposition

Summons dismissed

Orders

  • Costs nisi: half of the costs of the Summons (including reserved costs if any) to be paid personally by the Bankrupt to the trustees, to be taxed if not agreed