Representation of First Island Trustees Limited re the D Trust [2020] JRC 142 (24 July 2020)

Representation of First Island Trustees Limited re the D Trust [2020] JRC 142 (24 July 2020)

The trustee's decisions to sell the property, pay reduced and reviewed fees and expenses, distribute the net proceeds to charities, and terminate the Trust were rational, made in good faith, and not vitiated by conflict of interest. The Court approved the opening of a bank account to facilitate these actions, finding no evidence of tainted funds or illegality.

Citation
[2020] JRC 142
Parties
Applicant: First Island Trustees Limited; Subject Trust: D Trust; Settlor: E (the Settlor); Beneficiary: F (Settlor's wife); Beneficiary: G (Settlor's son)
Jurisdiction
Jersey
Judgment Date
24 July 2020
Procedural Posture
Trustee Application for Blessing of Decisions / Final Judgment
Outcome
application granted
Legal Topics
Blessing of Trustee Decisions, Distribution to Charities, Trustee Fees and Expenses, Source of Wealth Due Diligence, Bank Account Opening for Trust Asset Realisation
Trusts Private Client Charity Law Regulatory Compliance Blessing of Trustee Decisions Distribution to Charities Trustee Fees and Expenses Source of Wealth Due Diligence +1 more

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Parties

First Island Trustees Limited

Applicant

D Trust

Subject Trust

E (the Settlor)

Settlor

F (Settlor's wife)

Beneficiary

G (Settlor's son)

Beneficiary

Procedural Posture

Trustee Application for Blessing of Decisions / Final Judgment

Legal Issues

  1. 1 Whether the trustee's decisions regarding sale of trust property, payment of fees, and distribution to charities should be blessed by the Court
  2. 2 Whether the trustee's actions were reasonable and in good faith despite regulatory failings and lack of contact with beneficiaries
  3. 3 Whether the opening of a bank account with out-of-date CDD is permissible

Ratio Decidendi

The trustee's decisions to sell the property, pay reduced and reviewed fees and expenses, distribute the net proceeds to charities, and terminate the Trust were rational, made in good faith, and not vitiated by conflict of interest. The Court approved the opening of a bank account to facilitate these actions, finding no evidence of tainted funds or illegality.

Court Disposition

application granted

Orders

  • Trustee authorised to open a bank account with Standard Bank in the name of the Company
  • Trustee authorised to sell the Property and pay costs and taxes on sale