In re Esteem Settlement v [2001] JLR 540 (17 September 2001)

In re Esteem Settlement v [2001] JLR 540 (17 September 2001)

The court held that the power of advancement may be exercised if it enables full payment of the debt, but a mere possibility of the remainder being forgiven on part-payment is not sufficient to constitute a benefit to the beneficiary.

Citation
[2001] JLR 540
Parties
Applicant: Esteem Settlement
Jurisdiction
Jersey
Judgment Date
17 September 2001
Procedural Posture
Trusts Application Regarding Power of Advancement / Judgment
Outcome
Application dismissed
Legal Topics
Power of Advancement, Benefit of Beneficiary, Trustee Duties
Trusts Power of Advancement Benefit of Beneficiary Trustee Duties

Case Brief

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Parties

Esteem Settlement

Applicant

Procedural Posture

Trusts Application Regarding Power of Advancement / Judgment

Legal Issues

  1. 1 Whether the court should exercise the power to reduce a beneficiary's debt under the power of advancement
  2. 2 Whether part-payment of a debt, with the possibility of the remainder being forgiven, constitutes a benefit to the beneficiary

Ratio Decidendi

The court held that the power of advancement may be exercised if it enables full payment of the debt, but a mere possibility of the remainder being forgiven on part-payment is not sufficient to constitute a benefit to the beneficiary.

Court Disposition

Application dismissed