Representation of BOS Trustees Limited [2024] JRC 124 (28 May 2024)

Representation of BOS Trustees Limited [2024] JRC 124 (28 May 2024)

Court cannot grant Trustee leave to distribute £1 million to B due to material change in circumstances: late filing of draft Order of Justice by G's estate and draft amended Points of Claim challenging B's beneficiary status constitute reasonably arguable third-party claims, making distribution unsafe until claims are resolved.

Citation
[2024] JRC 124
Parties
Trustee: BOS Trustees Limited; First Respondent/beneficiary: B; Second Respondent/claimant (estate of G): C; Co Executor of G's Estate: J
Jurisdiction
Jersey
Judgment Date
28 May 2024
Procedural Posture
Trust Directions Application / Post Hearing Judgment on Trustee's Summons for Directions
Outcome
Trustee's application for leave to distribute refused.
Legal Topics
Distribution of Trust Assets, Third Party Claims, Beneficiary Status, Paraphernal Assets, Trustee Discretion
Trusts Private International Law Distribution of Trust Assets Third Party Claims Beneficiary Status Paraphernal Assets Trustee Discretion

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Parties

BOS Trustees Limited

Trustee

B

First Respondent/beneficiary

C

Second Respondent/claimant (estate of G)

J

Co Executor of G's Estate

Procedural Posture

Trust Directions Application / Post Hearing Judgment on Trustee's Summons for Directions

Legal Issues

  1. 1 Whether Trustee should be granted leave to distribute £1 million to B from Trust assets
  2. 2 Whether Trustee should be directed not to exercise dispositive powers pending determination of adverse claim by C (Estate of G)
  3. 3 Status of B as beneficiary

Ratio Decidendi

Court cannot grant Trustee leave to distribute £1 million to B due to material change in circumstances: late filing of draft Order of Justice by G's estate and draft amended Points of Claim challenging B's beneficiary status constitute reasonably arguable third-party claims, making distribution unsafe until claims are resolved.

Court Disposition

Trustee's application for leave to distribute refused.

Orders

  • Trustee not granted leave to distribute £1 million to B pending resolution of adverse claims.
  • Court minded to order Second Respondent (C) to pay costs thrown away, including Trustee's and First Respondent's costs, subject to written submissions.