The M Settlement [2009] JRC 140 (14 July 2009)

The M Settlement [2009] JRC 140 (14 July 2009)

Distribution of the remaining trust assets to WM would not realistically benefit him, as the sum would be insufficient to discharge his debts and would primarily benefit his creditors. The trust fund is too depleted to justify continued administration. The assets should therefore be distributed to the children for the benefit of the grandchildren.

Citation
[2009] JRC 140
Parties
First Respondent / Settlor / Protector / Beneficiary: WM; Second Respondent / Spouse / Beneficiary: EM; Third Respondents / Beneficiaries: The Children (DM, CB, and one other); Trustee / Sole Trustee (appointed by Wm): DD; Former Trustees / Applicants: The Representors
Jurisdiction
Jersey
Judgment Date
14 July 2009
Procedural Posture
Trusts Directions Application / Final Determination and Directions for Distribution of Remaining Trust Assets
Outcome
Trust terminated; remaining assets to be distributed to the children.
Legal Topics
Termination of Trusts, Distribution of Trust Assets, Protector's Powers, Trustee's Duties, Conflict of Interest, Benefit to Beneficiaries
Trusts and Estates Private International Law Termination of Trusts Distribution of Trust Assets Protector's Powers Trustee's Duties Conflict of Interest Benefit to Beneficiaries

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 5 Party arguments 2 Amounts and remedies 11
Sign in to unlock

Parties

WM

First Respondent / Settlor / Protector / Beneficiary

EM

Second Respondent / Spouse / Beneficiary

The Children (DM, CB, and one other)

Third Respondents / Beneficiaries

DD

Trustee / Sole Trustee (appointed by Wm)

The Representors

Former Trustees / Applicants

Procedural Posture

Trusts Directions Application / Final Determination and Directions for Distribution of Remaining Trust Assets

Legal Issues

  1. 1 Whether remaining trust assets should be distributed to the settlor (WM), his spouse (EM), or his children
  2. 2 Whether the appointment and actions of the trustee (DD) and protector (WM) were valid and in accordance with fiduciary duties
  3. 3 Whether the trust should be terminated and assets distributed given depletion and costs

Ratio Decidendi

Distribution of the remaining trust assets to WM would not realistically benefit him, as the sum would be insufficient to discharge his debts and would primarily benefit his creditors. The trust fund is too depleted to justify continued administration. The assets should therefore be distributed to the children for the benefit of the grandchildren.

Court Disposition

Trust terminated; remaining assets to be distributed to the children.

Orders

  • Trust fund to be distributed to the children for the benefit of the grandchildren.
  • Protector's powers suspended until further order.