Representation of K Trustees Limited re: G Trust [2024] JRC 185 (14 September 2024)

Representation of K Trustees Limited re: G Trust [2024] JRC 185 (14 September 2024)

The executor's claim is a hostile claim for the benefit of B's estate, not for the benefit of the trust as a whole, and does not qualify for a pre-emptive or protective costs order from trust assets; the usual rules for hostile litigation costs apply.

Citation
[2024] JRC 185
Parties
Executor of the Estate of the First Respondent (b): F; First Respondent, Deceased Beneficiary: B; Contingent Beneficiary (h's Niece): Second Respondent; Contingent Beneficiary (h's Niece): Third Respondent; Contingent Beneficiary (h's Niece): Fourth Respondent; Trustee of G Trust: Representor (Trustee)
Jurisdiction
Jersey
Judgment Date
14 September 2024
Procedural Posture
Beddoe Proceedings (trust Litigation) / Post Hearing Judgment on Executor's Application for Costs Orders
Outcome
Application dismissed
Legal Topics
Beddoe Applications, Trustee Indemnity, Costs in Trust Litigation, Beneficiary Claims, Hostile Litigation
Trusts and Estates Civil Procedure Beddoe Applications Trustee Indemnity Costs in Trust Litigation Beneficiary Claims Hostile Litigation

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Parties

F

Executor of the Estate of the First Respondent (b)

B

First Respondent, Deceased Beneficiary

Second Respondent

Contingent Beneficiary (h's Niece)

Third Respondent

Contingent Beneficiary (h's Niece)

Fourth Respondent

Contingent Beneficiary (h's Niece)

Representor (Trustee)

Trustee of G Trust

Procedural Posture

Beddoe Proceedings (trust Litigation) / Post Hearing Judgment on Executor's Application for Costs Orders

Legal Issues

  1. 1 Whether the executor of a deceased beneficiary's estate is entitled to have legal costs funded from trust assets on an indemnity basis
  2. 2 Whether the executor's claim qualifies for pre-emptive or protective costs orders under trust litigation principles
  3. 3 Whether the executor's claim is derivative or hostile in nature

Ratio Decidendi

The executor's claim is a hostile claim for the benefit of B's estate, not for the benefit of the trust as a whole, and does not qualify for a pre-emptive or protective costs order from trust assets; the usual rules for hostile litigation costs apply.

Court Disposition

Application dismissed

Orders

  • Executor's application for indemnity funding of legal costs from trust assets is dismissed.
  • Executor may pursue claims in Main Proceedings at the cost of the estate until liability for costs is determined in those proceedings.