HSBC Trustee CI v Kwong [2017] JRC 214A (15 December 2017)

HSBC Trustee CI v Kwong [2017] JRC 214A (15 December 2017)

The trustee's decision to divide the trust assets as requested by the settlor is reasonable, made in good faith, within the range of decisions a properly instructed trustee could make, and not vitiated by conflict of interest. The trustee is not legally bound by the 2006 MOU or HOA in a manner that would prevent the proposed distributions. Adequate disclosure and valuation processes have been undertaken. The settlor's wishes are genuine and not the result of undue influence. The court therefore blesses the trustee's decision.

Citation
[2017] JRC 214A
Parties
Applicant: Representor (the Trustee); Respondent: Settlor (First Respondent); Respondent: Walter (Second Respondent); Respondent: Thomas (Third Respondent); Respondent: Fourth Respondent (Thomas' child); Respondent: Fifth Respondent (Thomas' child); Respondent: Sixth Respondent (Thomas' child); Respondent: Raymond (Seventh Respondent); Respondent: Eighth Respondent (Raymond's child); Respondent: Ninth Respondent (Raymond's child); Respondent: Tenth Respondent (Raymond's child); Respondent: Geoffrey (Eleventh Respondent); Respondent: Jonathan (Twelfth Respondent); Respondent: Lesley (Thirteenth Respondent)
Jurisdiction
Jersey
Judgment Date
15 December 2017
Procedural Posture
Trustee Application for Court Blessing / Judgment on Application for Blessing of Momentous Decision
Outcome
Application granted; trustee's decision blessed
Legal Topics
Court Blessing of Trustee Decisions, Family Trust Asset Division, Momentous Trustee Decisions, Disclosure Obligations in Trusts, Interpretation of Mous and Settlement Agreements
Trusts and Estates Private International Law Court Blessing of Trustee Decisions Family Trust Asset Division Momentous Trustee Decisions Disclosure Obligations in Trusts Interpretation of Mous and Settlement Agreements

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 6 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Representor (the Trustee)

Applicant

Settlor (First Respondent)

Respondent

Walter (Second Respondent)

Respondent

Thomas (Third Respondent)

Respondent

Fourth Respondent (Thomas' child)

Respondent

Fifth Respondent (Thomas' child)

Respondent

Sixth Respondent (Thomas' child)

Respondent

Raymond (Seventh Respondent)

Respondent

Eighth Respondent (Raymond's child)

Respondent

Ninth Respondent (Raymond's child)

Respondent

Tenth Respondent (Raymond's child)

Respondent

Geoffrey (Eleventh Respondent)

Respondent

Jonathan (Twelfth Respondent)

Respondent

Lesley (Thirteenth Respondent)

Respondent

Procedural Posture

Trustee Application for Court Blessing / Judgment on Application for Blessing of Momentous Decision

Legal Issues

  1. 1 Whether the trustee's decision to divide trust assets among family branches should be blessed by the court
  2. 2 Whether the trustee is bound by the 2006 MOU or HOA in making distributions
  3. 3 Whether adequate disclosure has been made to ascertain the correct division of assets

Ratio Decidendi

The trustee's decision to divide the trust assets as requested by the settlor is reasonable, made in good faith, within the range of decisions a properly instructed trustee could make, and not vitiated by conflict of interest. The trustee is not legally bound by the 2006 MOU or HOA in a manner that would prevent the proposed distributions. Adequate disclosure and valuation processes have been undertaken. The settlor's wishes are genuine and not the result of undue influence. The court therefore blesses the trustee's decision.

Court Disposition

Application granted; trustee's decision blessed

Orders

  • The trustee is authorised and directed to proceed with the proposed division and segregation of trust assets as set out in its application and supporting evidence.
  • The trustee may take preparatory steps to ensure the division is carried out fairly, reasonably, and in a tax-efficient manner, including top up payments to equalise the amounts segregated to each family branch.