A Trustees Limited -v- W_X_Y_and _Z [2008] JRC 097 (16 June 2008)

A Trustees Limited -v- W_X_Y_and _Z [2008] JRC 097 (16 June 2008)

The trustee's decision to limit W's capital distribution was not reasonable and was influenced by conflict of interest; court directed trustee to make the requested £11 million distribution to W.

Citation
[2008] JRC 097
Parties
Trustee: A Trustees Limited; Primary Beneficiary: W; Beneficiaries: Children of V and W; Beneficiary (settlement), Ex Spouse of W: V; Beneficiaries: Remoter Issue
Jurisdiction
Jersey
Judgment Date
16 June 2008
Procedural Posture
Trustee Application for Court Directions / Final Judgment on Directions and Blessing of Trustee Decisions
Outcome
Court directed trustee to distribute £11 million to W; trustee's prior decision not approved.
Legal Topics
Discretionary Trusts, Trustee Conflict of Interest, Capital Distribution, Tax Mitigation, Divorce Asset Division
Trusts and Estates Family Law Tax Law Discretionary Trusts Trustee Conflict of Interest Capital Distribution Tax Mitigation Divorce Asset Division

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Parties

A Trustees Limited

Trustee

W

Primary Beneficiary

Children of V and W

Beneficiaries

V

Beneficiary (settlement), Ex Spouse of W

Remoter Issue

Beneficiaries

Procedural Posture

Trustee Application for Court Directions / Final Judgment on Directions and Blessing of Trustee Decisions

Legal Issues

  1. 1 Whether the trustee's decision to limit capital distribution to W was reasonable
  2. 2 Whether the trustee's discretion was influenced by conflict of interest
  3. 3 Whether the court should direct the trustee to make the requested distribution

Ratio Decidendi

The trustee's decision to limit W's capital distribution was not reasonable and was influenced by conflict of interest; court directed trustee to make the requested £11 million distribution to W.

Court Disposition

Court directed trustee to distribute £11 million to W; trustee's prior decision not approved.

Orders

  • Trustee to advance £11 million to W from the Fund.
  • Costs of application to be paid out of the Fund unless parties submit otherwise.