In the matter of the B Trust [2020] JRC 011 (21 January 2020)

In the matter of the B Trust [2020] JRC 011 (21 January 2020)

The Court held that, due to the unique circumstances where the protectors could not obtain necessary information because of confidentiality concerns, it was appropriate to dispense with the requirement for protector consent for the payment to the Eighth Respondent. The Trustee was authorised to make the payment, grossed up for tax if necessary. The Court further directed that any challenge to the appointment of the new protectors must be brought by a specified deadline, and that costs would be awarded on the trustee and indemnity basis as agreed.

Citation
[2020] JRC 011
Parties
Applicant: The Trustee (Representor); Respondent: First Respondent; Respondents: Second to Thirteenth Respondents; Respondents: Fourteenth and Fifteenth Respondents (New Protectors); Respondent: Eighth Respondent; Respondent: Ninth Respondent; Respondent: Tenth Respondent; Respondent: Eleventh Respondent; Respondent: Fifth Respondent
Jurisdiction
Jersey
Judgment Date
21 January 2020
Procedural Posture
Trust Administration / Representation / Interlocutory Hearing and Directions
Outcome
Partially granted; directions given
Legal Topics
Protector Consent, Appointment of Protectors, Trustee Powers, Beneficiary Distributions, Costs Orders
Trusts Equity Private Client Protector Consent Appointment of Protectors Trustee Powers Beneficiary Distributions Costs Orders

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Parties

The Trustee (Representor)

Applicant

First Respondent

Respondent

Second to Thirteenth Respondents

Respondents

Fourteenth and Fifteenth Respondents (New Protectors)

Respondents

Eighth Respondent

Respondent

Ninth Respondent

Respondent

Tenth Respondent

Respondent

Eleventh Respondent

Respondent

Fifth Respondent

Respondent

Procedural Posture

Trust Administration / Representation / Interlocutory Hearing and Directions

Legal Issues

  1. 1 Whether the Trustee may make distributions without protector consent
  2. 2 Whether the appointment of new protectors is valid
  3. 3 Whether protectors are entitled to remuneration

Ratio Decidendi

The Court held that, due to the unique circumstances where the protectors could not obtain necessary information because of confidentiality concerns, it was appropriate to dispense with the requirement for protector consent for the payment to the Eighth Respondent. The Trustee was authorised to make the payment, grossed up for tax if necessary. The Court further directed that any challenge to the appointment of the new protectors must be brought by a specified deadline, and that costs would be awarded on the trustee and indemnity basis as agreed.

Court Disposition

Partially granted; directions given

Orders

  • Protector consent dispensed with for payment to Eighth Respondent; Trustee authorised to make payment grossed up for tax if necessary
  • Second to Thirteenth Respondents directed to file particulars of claim challenging protectors' appointment by 14 February 2020