Representation of Rysaffe Fiduciaires Sarl re G 2000 Trust and G 2008 Settlement [2021] JRC 230 (10 September 2021)

Representation of Rysaffe Fiduciaires Sarl re G 2000 Trust and G 2008 Settlement [2021] JRC 230 (10 September 2021)

The Trustee's proposed exercise of its powers to add and exclude beneficiaries and to distribute trust assets is valid under the terms of the trusts and Jersey law. The substratum rule does not limit the Trustee's powers. The Trustee acted in good faith, reasonably, and without conflict of interest, and the proposal is for the benefit of all beneficiaries, including minors and unborn. The court approves the Trustee's decision.

Citation
[2021] JRC 230
Parties
Trustee/applicant: Rysaffe Fiduciaires Sarl; Beneficiary/respondent: F; Beneficiary/respondent: B; Beneficiary/respondent: C; Beneficiary/respondent: E; Beneficiary/respondent: M; Minor Beneficiary/represented: D; Potential Beneficiaries/represented: Unborn issue of Settlor and issue of Settlor's parents
Jurisdiction
Jersey
Judgment Date
10 September 2021
Procedural Posture
Trustee Application for Court Approval of Proposed Trust Arrangements / Final Judgment on Application
Outcome
Application granted; Trustee's decision approved.
Legal Topics
Variation of Trusts, Exercise of Trustee Powers, Beneficiary Exclusion and Addition, Interpretation of Letters of Wishes, Substratum Rule, Approval of Trustee Decisions
Trusts and Estates Private International Law Variation of Trusts Exercise of Trustee Powers Beneficiary Exclusion and Addition Interpretation of Letters of Wishes Substratum Rule Approval of Trustee Decisions

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Parties

Rysaffe Fiduciaires Sarl

Trustee/applicant

F

Beneficiary/respondent

B

Beneficiary/respondent

C

Beneficiary/respondent

E

Beneficiary/respondent

M

Beneficiary/respondent

D

Minor Beneficiary/represented

Unborn issue of Settlor and issue of Settlor's parents

Potential Beneficiaries/represented

Procedural Posture

Trustee Application for Court Approval of Proposed Trust Arrangements / Final Judgment on Application

Legal Issues

  1. 1 Whether the Trustee's proposed exercise of powers to add and exclude beneficiaries and to distribute trust assets is valid under the terms of the trusts and Jersey law
  2. 2 Whether the so-called substratum rule limits the Trustee's powers
  3. 3 Whether the Trustee's decision is reasonable, made in good faith, and not vitiated by conflict of interest

Ratio Decidendi

The Trustee's proposed exercise of its powers to add and exclude beneficiaries and to distribute trust assets is valid under the terms of the trusts and Jersey law. The substratum rule does not limit the Trustee's powers. The Trustee acted in good faith, reasonably, and without conflict of interest, and the proposal is for the benefit of all beneficiaries, including minors and unborn. The court approves the Trustee's decision.

Court Disposition

Application granted; Trustee's decision approved.

Orders

  • Trustee authorised to execute all necessary documents to implement the proposal regarding the division and allocation of assets of the Trusts and Estate.
  • F to be added as a beneficiary of the G 2008 Settlement for a limited purpose and period.