In the matter of The Piedmont Trust and the Riviera Trust [2021] JRC 248 (05 October 2021)

In the matter of The Piedmont Trust and the Riviera Trust [2021] JRC 248 (05 October 2021)

The trustees' decision to distribute and terminate the trusts was made in good faith, after proper consultation and consideration of all relevant factors including tax consequences and letters of wishes. There was no operative conflict of interest influencing the decision. The decision was within the range of reasonable trustee decisions and should be approved by the court.

Citation
[2021] JRC 248
Parties
Applicant/representor (trustee of the Piedmont Trust): Jasmine Trustees Limited; Applicant/representor (co Trustee of the Riviera Trust): Lutea Trustees Limited; First Respondent (beneficiary): The Daughter; Second Respondent (beneficiary): The Elder Son; Third Respondent (beneficiary): The Younger Son; Fourth Respondents (beneficiaries): The Adult Grandchildren; Beneficiary (minor, Represented by Guardian Ad Litem): The Daughter's Child; Beneficiary (r Trust): The Fifth Respondent; Eighth Respondent (protector): Rysaffe
Jurisdiction
Jersey
Judgment Date
05 October 2021
Procedural Posture
Trustee Application for Court Approval (blessing) of Proposed Trust Distributions / Final Judgment on Approval of Trustee Decision
Outcome
Application granted; trustees' decision approved.
Legal Topics
Trustee Powers and Discretions, Court Blessing of Trustee Decisions, Conflict of Interest, Letters of Wishes, Protector's Role, Tax Consequences of Trust Distributions
Trusts and Estates Private International Law Trustee Powers and Discretions Court Blessing of Trustee Decisions Conflict of Interest Letters of Wishes Protector's Role Tax Consequences of Trust Distributions

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Parties

Jasmine Trustees Limited

Applicant/representor (trustee of the Piedmont Trust)

Lutea Trustees Limited

Applicant/representor (co Trustee of the Riviera Trust)

The Daughter

First Respondent (beneficiary)

The Elder Son

Second Respondent (beneficiary)

The Younger Son

Third Respondent (beneficiary)

The Adult Grandchildren

Fourth Respondents (beneficiaries)

The Daughter's Child

Beneficiary (minor, Represented by Guardian Ad Litem)

The Fifth Respondent

Beneficiary (r Trust)

Rysaffe

Eighth Respondent (protector)

Procedural Posture

Trustee Application for Court Approval (blessing) of Proposed Trust Distributions / Final Judgment on Approval of Trustee Decision

Legal Issues

  1. 1 Whether the trustees' decision to distribute and terminate the trusts should be approved by the court
  2. 2 Whether the trustees were disqualified from exercising their discretion due to conflict of interest
  3. 3 What weight should be given to letters of wishes in the trustees' decision-making

Ratio Decidendi

The trustees' decision to distribute and terminate the trusts was made in good faith, after proper consultation and consideration of all relevant factors including tax consequences and letters of wishes. There was no operative conflict of interest influencing the decision. The decision was within the range of reasonable trustee decisions and should be approved by the court.

Court Disposition

Application granted; trustees' decision approved.

Orders

  • The trustees' decision to distribute and terminate the trusts in the specified proportions is approved.
  • Trustees are authorized to proceed with the proposed distributions, subject to tax advice and arrangements for individual beneficiaries as necessary.