NATALIE W CHEN v. WONG SIU LING AND ANOTHER

NATALIE W CHEN v. WONG SIU LING AND ANOTHER

The court held that, on the evidence including the memorandum of wishes and the parties' conduct, the 1985 settlement operated as a fixed settlement in accordance with the settlor's will (not a true discretionary trust); although the trustees breached fiduciary duties by allowing conflicts in relation to the Barker Road redevelopment and by lacking openness over estate matters, there was no dishonesty or continuing risk to the trust sufficient to justify removal; the plaintiff is entitled to a declaration that the trust property is held on the terms of the settlement as modified by the memorandum and to costs payable by the defendants personally, but no order removing the trustees or...

Citation
NATALIE W CHEN v. WONG SIU LING AND ANOTHER
Parties
Plaintiff: Natalie W Chen; 1st Defendant (trustee): Wong Siu Ling; 2nd Defendant (trustee): Wong Wan Chiu, Ignatius
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
7 November 2000
Case Number
HCA17008/1998
Procedural Posture
Trust and Estate Litigation (declaration and Removal of Trustees) / Judgment (court of First Instance)
Outcome
Declaration granted that defendants hold trust property and income on the terms of the settlement deed as modified by the memorandum of wishes; trustees not removed; plaintiff awarded costs to be paid by the defendants personally; no damages awarded; liberty to apply.
Legal Topics
Discretionary Versus Fixed Trust, Memorandum of Wishes, Removal of Trustees, Conflict of Interest by Trustees, Tax Avoidance Schemes (ramsay Principle), Estate Duty Clearance
Source Language
EN
Trust Law Estate Duty / Taxation Probate Law Fiduciary Duties Property Law Discretionary Versus Fixed Trust Memorandum of Wishes Removal of Trustees +3 more

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Parties

Natalie W Chen

Plaintiff

Wong Siu Ling

1st Defendant (trustee)

Wong Wan Chiu, Ignatius

2nd Defendant (trustee)

Procedural Posture

Trust and Estate Litigation (declaration and Removal of Trustees) / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether the 1985 settlement was a discretionary trust or a fixed trust equivalent to the will
  2. 2 Whether the settlor's memorandum of wishes formed part of the trust terms and constrained trustees' discretion
  3. 3 Whether the trustees breached their fiduciary duties by withholding probate/estate duty clearance

Ratio Decidendi

The court held that, on the evidence including the memorandum of wishes and the parties' conduct, the 1985 settlement operated as a fixed settlement in accordance with the settlor's will (not a true discretionary trust); although the trustees breached fiduciary duties by allowing conflicts in relation to the Barker Road redevelopment and by lacking openness over estate matters, there was no dishonesty or continuing risk to the trust sufficient to justify removal; the plaintiff is entitled to a declaration that the trust property is held on the terms of the settlement as modified by the memorandum and to costs payable by the defendants personally, but no order removing the trustees or...

Court Disposition

Declaration granted that defendants hold trust property and income on the terms of the settlement deed as modified by the memorandum of wishes; trustees not removed; plaintiff awarded costs to be paid by the defendants personally; no damages awarded; liberty to apply.

Orders

  • Declaration that the defendants hold the trust property and income on the terms of the settlement deed as modified by the memorandum of wishes
  • No removal of the current trustees