re Wellman Trust v [2001] JRC 87A (23 April 2001)

re Wellman Trust v [2001] JRC 87A (23 April 2001)

On its true construction, the trust deed provides that where income has accrued to the Trustee, the Settlor is entitled to that income and it must be paid to him pursuant to Clause A6.01.01. The Trustee has no discretion to pay that accrued income to any other beneficiary. The powers under Clause A7 only apply to capital and future income arising after the exercise of the relevant power.

Citation
[2001] JRC 87A
Parties
Trustee: Mourant & Co Trustees Limited; Settlor: Ronald Cohen; Representative of Charitable Beneficiaries: Attorney General; Representative of Minor, Unborn and Unascertained Beneficiaries: Advocate Lakeman
Jurisdiction
Jersey
Judgment Date
23 April 2001
Procedural Posture
Trustee Application for Directions / Interpretation of Trust Deed
Outcome
Directions granted; Settlor entitled to accrued income as of right.
Legal Topics
Interpretation of Trust Instruments, Trustee Powers, Beneficiary Entitlement
Trusts Private Client Interpretation of Trust Instruments Trustee Powers Beneficiary Entitlement

Case Brief

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Parties

Mourant & Co Trustees Limited

Trustee

Ronald Cohen

Settlor

Attorney General

Representative of Charitable Beneficiaries

Advocate Lakeman

Representative of Minor, Unborn and Unascertained Beneficiaries

Procedural Posture

Trustee Application for Directions / Interpretation of Trust Deed

Legal Issues

  1. 1 Whether the Trustee is required to pay all income as it arises to the Settlor or has discretion to pay income to other beneficiaries under Clause A7

Ratio Decidendi

On its true construction, the trust deed provides that where income has accrued to the Trustee, the Settlor is entitled to that income and it must be paid to him pursuant to Clause A6.01.01. The Trustee has no discretion to pay that accrued income to any other beneficiary. The powers under Clause A7 only apply to capital and future income arising after the exercise of the relevant power.

Court Disposition

Directions granted; Settlor entitled to accrued income as of right.

Orders

  • Trustee must pay all accrued income to the Settlor pursuant to Clause A6.01.01.
  • Trustee's discretionary powers under Clause A7 only apply to capital and future income arising after exercise of the power.