In the matter of The Piedmont Trust and the Riviera Trust [2021] JRC 250 (06 October 2021)

In the matter of The Piedmont Trust and the Riviera Trust [2021] JRC 250 (06 October 2021)

Fiduciaries and beneficiaries are entitled to indemnity for their costs out of the trust funds on the indemnity basis, as none acted unreasonably or with misconduct. In the present circumstances, where distributions differ between the P Trust and the R Trust, costs are to be allocated pro rata to the value of each trust (77% P Trust, 23% R Trust) to ensure fairness among beneficiaries.

Citation
[2021] JRC 250
Parties
Representor: Jasmine Trustees Limited; Representor: Lutea Trustees Limited; Respondent: M; Respondent: N; Respondent: Q; Respondent: O, P, V, R, S, W; Respondent: U; Respondent: Advocate Damian James as Guardian ad Litem of X; Respondent: Advocate Simon Franckel as Representative of the unborn and remoter issue; Respondent: Rysaffe Fiduciaries S.à.r.l.
Jurisdiction
Jersey
Judgment Date
06 October 2021
Procedural Posture
Trust Administrative Proceedings / Judgment on Costs Following Substantive Decision
Outcome
Costs order granted as per normal trustee indemnity basis, with pro rata allocation between trusts.
Legal Topics
Trustee Indemnity for Costs, Beneficiary Costs, Allocation of Trust Costs, Administrative Proceedings, Costs Orders
Trusts and Estates Trustee Indemnity for Costs Beneficiary Costs Allocation of Trust Costs Administrative Proceedings Costs Orders

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Parties

Jasmine Trustees Limited

Representor

Lutea Trustees Limited

Representor

M

Respondent

N

Respondent

Q

Respondent

O, P, V, R, S, W

Respondent

U

Respondent

Advocate Damian James as Guardian ad Litem of X

Respondent

Advocate Simon Franckel as Representative of the unborn and remoter issue

Respondent

Rysaffe Fiduciaries S.à.r.l.

Respondent

Procedural Posture

Trust Administrative Proceedings / Judgment on Costs Following Substantive Decision

Legal Issues

  1. 1 Whether fiduciaries and beneficiaries are entitled to indemnity for costs from trust funds
  2. 2 How costs should be allocated between the P Trust and the R Trust

Ratio Decidendi

Fiduciaries and beneficiaries are entitled to indemnity for their costs out of the trust funds on the indemnity basis, as none acted unreasonably or with misconduct. In the present circumstances, where distributions differ between the P Trust and the R Trust, costs are to be allocated pro rata to the value of each trust (77% P Trust, 23% R Trust) to ensure fairness among beneficiaries.

Court Disposition

Costs order granted as per normal trustee indemnity basis, with pro rata allocation between trusts.

Orders

  • Fiduciaries (Trustees, Protector, Advocate Franckel) to be indemnified for costs out of trust funds on the indemnity basis.
  • All beneficiaries to have their costs out of the trust funds on the indemnity basis.