In re Carafe Trust v [2005] JLR 159 (16 May 2005)

In re Carafe Trust v [2005] JLR 159 (16 May 2005)

A trustee is entitled to payment of fees before retirement and may reasonably refuse to transfer the trust unless adequate security is provided; however, an offer by beneficiaries to pay disputed fees into an escrow account is adequate security, and the trustee should then retire. The trustee is not entitled to security over the entire trust fund.

Citation
[2005] JLR 159
Parties
Applicant: Carafe Trust; Respondent: (Unnamed Trustee)
Jurisdiction
Jersey
Judgment Date
16 May 2005
Procedural Posture
Trusts / Application for Retirement of Trustee and Payment of Fees
Outcome
Application granted in part
Legal Topics
Retirement of Trustees, Trustee Fees, Security for Payment of Fees
Trusts Retirement of Trustees Trustee Fees Security for Payment of Fees

Case Brief

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Parties

Carafe Trust

Applicant

(Unnamed Trustee)

Respondent

Procedural Posture

Trusts / Application for Retirement of Trustee and Payment of Fees

Legal Issues

  1. 1 Whether a retiring trustee is entitled to payment of fees before retirement
  2. 2 Whether a trustee can refuse to transfer the trust unless adequate security for payment is provided
  3. 3 Whether an offer by beneficiaries to pay disputed fees into escrow is adequate security

Ratio Decidendi

A trustee is entitled to payment of fees before retirement and may reasonably refuse to transfer the trust unless adequate security is provided; however, an offer by beneficiaries to pay disputed fees into an escrow account is adequate security, and the trustee should then retire. The trustee is not entitled to security over the entire trust fund.

Court Disposition

Application granted in part

Orders

  • Trustee to retire upon beneficiaries paying disputed fees into escrow account
  • Trustee not entitled to security over entire trust fund