In re Esteem Settlement v [2001] JLR 7 (09 January 2001)

In re Esteem Settlement v [2001] JLR 7 (09 January 2001)

A trustee may, in rare circumstances, exercise the power of advancement to make an indirect gift to a third party for the benefit of a beneficiary, even if the beneficiary objects, but cannot force a direct gift upon the beneficiary.

Citation
[2001] JLR 7
Parties
Applicant: Esteem Settlement
Jurisdiction
Jersey
Judgment Date
09 January 2001
Procedural Posture
Trusts Application Regarding Powers of Trustees / Judgment
Outcome
Clarification of trustee's powers granted
Legal Topics
Powers of Trustees, Advancement, Distribution Against Beneficiary's Wishes
Trusts Law Powers of Trustees Advancement Distribution Against Beneficiary's Wishes

Case Brief

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Parties

Esteem Settlement

Applicant

Procedural Posture

Trusts Application Regarding Powers of Trustees / Judgment

Legal Issues

  1. 1 Whether a trustee can make a distribution for the benefit of a beneficiary against the beneficiary's wishes
  2. 2 Whether a trustee can make an indirect gift to a third party for the benefit of a beneficiary who objects

Ratio Decidendi

A trustee may, in rare circumstances, exercise the power of advancement to make an indirect gift to a third party for the benefit of a beneficiary, even if the beneficiary objects, but cannot force a direct gift upon the beneficiary.

Court Disposition

Clarification of trustee's powers granted

Orders

  • Trustee may make indirect gift to third party for beneficiary's benefit, even if beneficiary objects, but should exercise this power rarely