Representation of Hawksford Jersey Limited re H Trust [2018] JRC 171 (14 September 2018)

Representation of Hawksford Jersey Limited re H Trust [2018] JRC 171 (14 September 2018)

The court refused to bless the trustee's decision to sell the property at this time because the trustee failed to acknowledge and address its conflict of interest, did not consider the tax consequences of sale, did not proactively pursue alternatives to sale, and did not ascertain the widow's position. The court...

Source-derived case information.

Citation
[2018] JRC 171
Parties
Applicant: Representor (the Trustee); Respondent: First Respondent (the elder son); Respondent: Second Respondent (the younger son); Respondent: Third Respondent (the daughter); Respondent: Fourth Respondent (the widow)
Jurisdiction
Jersey
Judgment Date
14 September 2018
Procedural Posture
Trust Application / Application for Court Blessing of Trustee Decision
Outcome
application for blessing refused
Legal Topics
Trustee Powers, Court Blessing of Trustee Decisions, Conflict of Interest, Distribution of Trust Assets, Momentous Decisions
Trust Law Trustee Powers Court Blessing of Trustee Decisions Conflict of Interest Distribution of Trust Assets Momentous Decisions

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Parties

Representor (the Trustee)

Applicant

First Respondent (the elder son)

Respondent

Second Respondent (the younger son)

Respondent

Third Respondent (the daughter)

Respondent

Fourth Respondent (the widow)

Respondent

Procedural Posture

Trust Application / Application for Court Blessing of Trustee Decision

Legal Issues

  1. 1 Whether the court should bless the trustee's decision to sell the sole asset of the trust
  2. 2 Whether the trustee's conflict of interest precludes blessing
  3. 3 Whether the trustee properly considered alternatives and tax consequences

Ratio Decidendi

The court refused to bless the trustee's decision to sell the property at this time because the trustee failed to acknowledge and address its conflict of interest, did not consider the tax consequences of sale, did not proactively pursue alternatives to sale, and did not ascertain the widow's position. The court held that these failures meant it could not be satisfied the decision was appropriate or uninfluenced by conflict.

Court Disposition

application for blessing refused

Orders

  • Trustee's application for blessing of decision to sell property is refused
  • Trustee recommended to give siblings a deadline to present concrete, financed proposals for retention of the property