In the matter of the May Trust 14-May-2021 [2021] JRC 137 (14 May 2021)

In the matter of the May Trust 14-May-2021 [2021] JRC 137 (14 May 2021)

The proposed distribution of £75 million to the First Respondent for onward transfer to the Foundation is for the benefit of the beneficiary within the meaning of the trust deed and Jersey law, as 'benefit' is to be construed broadly and includes philanthropic and moral objectives recognized by the beneficiary. The quantum of the distribution is not unreasonable given the support of all adult beneficiaries, the remaining trust assets, and the ongoing philanthropic ethos. The trustee's decision is within its powers, made in good faith, and is one a reasonable trustee could have made. The court therefore blesses the decision as a momentous one.

Citation
[2021] JRC 137
Parties
Applicant/trustee: Basel Trust Corporation Limited (now the Representor); Principal Beneficiary/trustee of Foundation: First Respondent; Beneficiary/wife of First Respondent/trustee of Foundation: Second Respondent; Beneficiary/child of First and Second Respondents: Third Respondent; Beneficiary/child of First and Second Respondents: Fourth Respondent; Beneficiary/child of First and Second Respondents: Fifth Respondent; Guardian Ad Litem for Minor Beneficiaries and Representative of Unborn/remoter Issue: Advocate Kistler
Jurisdiction
Jersey
Judgment Date
14 May 2021
Procedural Posture
Representation (trust Law) / Application for Court Blessing of Momentous Trustee Decision
Outcome
Application granted; court blesses the proposed distribution as a momentous decision.
Legal Topics
Trustee Powers and Discretions, Beneficiary Benefit, Court Blessing of Trustee Decisions, Charitable Distributions, Tax Consequences of Trust Distributions
Trusts and Estates Charity Law Private International Law Trustee Powers and Discretions Beneficiary Benefit Court Blessing of Trustee Decisions Charitable Distributions Tax Consequences of Trust Distributions

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 3 Authorities cited 18 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

Basel Trust Corporation Limited (now the Representor)

Applicant/trustee

First Respondent

Principal Beneficiary/trustee of Foundation

Second Respondent

Beneficiary/wife of First Respondent/trustee of Foundation

Third Respondent

Beneficiary/child of First and Second Respondents

Fourth Respondent

Beneficiary/child of First and Second Respondents

Fifth Respondent

Beneficiary/child of First and Second Respondents

Advocate Kistler

Guardian Ad Litem for Minor Beneficiaries and Representative of Unborn/remoter Issue

Procedural Posture

Representation (trust Law) / Application for Court Blessing of Momentous Trustee Decision

Legal Issues

  1. 1 Whether the proposed distribution of £75 million (approx. 50% of the trust fund) to the First Respondent for onward transfer to a charitable foundation is for the benefit of the beneficiary within the meaning of the trust deed and Jersey law;
  2. 2 Whether the quantum of the proposed distribution is a proper exercise of trustee discretion given the interests of other beneficiaries;
  3. 3 Whether the court should bless the trustee's decision as a momentous one.

Ratio Decidendi

The proposed distribution of £75 million to the First Respondent for onward transfer to the Foundation is for the benefit of the beneficiary within the meaning of the trust deed and Jersey law, as 'benefit' is to be construed broadly and includes philanthropic and moral objectives recognized by the beneficiary. The quantum of the distribution is not unreasonable given the support of all adult beneficiaries, the remaining trust assets, and the ongoing philanthropic ethos. The trustee's decision is within its powers, made in good faith, and is one a reasonable trustee could have made. The court therefore blesses the decision as a momentous one.

Court Disposition

Application granted; court blesses the proposed distribution as a momentous decision.

Orders

  • Leave to amend the representation granted.
  • Order of 5 February convening XYT as a party revoked.