Representation of J Trustee Limited re Z Trust [2023] JRC 006 (16 January 2023)

Representation of J Trustee Limited re Z Trust [2023] JRC 006 (16 January 2023)

The trustee's decision to compensate the Fourth and Fifth Respondents for foregone distributions, distribute the trust fund equally among the six siblings, and terminate the trust was made in good faith, was reasonable, and was not vitiated by any conflict of interest. The court therefore blessed the trustee's decision.

Citation
[2023] JRC 006
Parties
Applicant: Trustee (Representor); Respondent: First Respondent; Respondent: Second Respondent; Respondent: Third Respondent; Respondent: Fourth Respondent; Respondent: Fifth Respondent; Respondent: Sixth Respondent
Jurisdiction
Jersey
Judgment Date
16 January 2023
Procedural Posture
Trusts Representation / Application for Court Blessing of Trustee Decision
Outcome
application granted
Legal Topics
Trustee Powers, Distribution of Trust Assets, Court Blessing of Trustee Decisions, Beneficiary Representation, Termination of Trust
Trusts Private Client Trustee Powers Distribution of Trust Assets Court Blessing of Trustee Decisions Beneficiary Representation Termination of Trust

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Parties

Trustee (Representor)

Applicant

First Respondent

Respondent

Second Respondent

Respondent

Third Respondent

Respondent

Fourth Respondent

Respondent

Fifth Respondent

Respondent

Sixth Respondent

Respondent

Procedural Posture

Trusts Representation / Application for Court Blessing of Trustee Decision

Legal Issues

  1. 1 Whether the court should bless the trustee's decision to compensate certain beneficiaries for foregone distributions, distribute the trust fund equally, and terminate the trust.
  2. 2 Whether the settlors should be convened to the proceedings.
  3. 3 Whether the trustee's decision was made in good faith, was reasonable, and free from conflict of interest.

Ratio Decidendi

The trustee's decision to compensate the Fourth and Fifth Respondents for foregone distributions, distribute the trust fund equally among the six siblings, and terminate the trust was made in good faith, was reasonable, and was not vitiated by any conflict of interest. The court therefore blessed the trustee's decision.

Court Disposition

application granted

Orders

  • The trustee's decision to compensate the Fourth and Fifth Respondents for foregone 2014/2015 capital distributions is approved.
  • The trustee is to distribute the trust assets, gross of any tax payable, giving each beneficiary as close as reasonably practicable to a one-sixth share after deducting outstanding reasonable fees, costs, and expenses.