In re Mourant & Co. Trustees Ltd. v [2001] JLR 218 (23 April 2001)

In re Mourant & Co. Trustees Ltd. v [2001] JLR 218 (23 April 2001)

Trustees may only advance income accruing after the decision to exercise the power of advancement; previously accrued income cannot be diverted from the primary beneficiary without clear words in the trust instrument.

Citation
[2001] JLR 218
Parties
Trustee: Mourant & Co. Trustees Ltd.
Jurisdiction
Jersey
Judgment Date
23 April 2001
Procedural Posture
Trust Application / Judgment
Outcome
Clarification granted
Legal Topics
Powers of Advancement, Trustee Duties, Beneficiary Entitlement
Trusts Powers of Advancement Trustee Duties Beneficiary Entitlement

Case Brief

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Parties

Mourant & Co. Trustees Ltd.

Trustee

Procedural Posture

Trust Application / Judgment

Legal Issues

  1. 1 Whether trustees can advance previously accrued income to beneficiaries other than the primary beneficiary

Ratio Decidendi

Trustees may only advance income accruing after the decision to exercise the power of advancement; previously accrued income cannot be diverted from the primary beneficiary without clear words in the trust instrument.

Court Disposition

Clarification granted

Orders

  • Trustees may not advance previously accrued income to other beneficiaries unless the trust instrument contains clear words permitting such diversion