In the matter of C Trust Company Ltd [2009] JRC 048 (12 March 2009)

In the matter of C Trust Company Ltd [2009] JRC 048 (12 March 2009)

The trustee's decision to provisionally allocate 40% of the trust assets to MS and her children, subject to the outcome of the English proceedings and further court sanction, is reasonable, made in good faith, and not vitiated by conflict of interest. The court sanctions and blesses this decision as interpreted, but declines to give general retrospective sanction for past conduct.

Citation
[2009] JRC 048
Parties
Trustee: The C Trust Company Limited; Minor Beneficiary: LD; Minor Beneficiary: ZD; Adult Beneficiary: MS; Adult Beneficiary: MD; Adult Beneficiary: JD; Adult Beneficiary: MaD; Settlor/beneficiary: KD; Non Beneficiary Spouse: AD
Jurisdiction
Jersey
Judgment Date
12 March 2009
Procedural Posture
Trust Administration Application / Application for Court Sanction of Trustee Decisions
Outcome
Application granted in part
Legal Topics
Trustee Discretion, Court Sanction of Trustee Decisions, Divorce and Trust Assets, Beneficiary Rights, Conflict of Interest in Trusts
Trust Law Family Law Trustee Discretion Court Sanction of Trustee Decisions Divorce and Trust Assets Beneficiary Rights Conflict of Interest in Trusts

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Parties

The C Trust Company Limited

Trustee

LD

Minor Beneficiary

ZD

Minor Beneficiary

MS

Adult Beneficiary

MD

Adult Beneficiary

JD

Adult Beneficiary

MaD

Adult Beneficiary

KD

Settlor/beneficiary

AD

Non Beneficiary Spouse

Procedural Posture

Trust Administration Application / Application for Court Sanction of Trustee Decisions

Legal Issues

  1. 1 Whether the trustee's decision to provisionally allocate trust assets to certain beneficiaries should be sanctioned by the court
  2. 2 Whether the trustee's approach to the English divorce proceedings is appropriate
  3. 3 Whether the trustee's past conduct should be retrospectively sanctioned

Ratio Decidendi

The trustee's decision to provisionally allocate 40% of the trust assets to MS and her children, subject to the outcome of the English proceedings and further court sanction, is reasonable, made in good faith, and not vitiated by conflict of interest. The court sanctions and blesses this decision as interpreted, but declines to give general retrospective sanction for past conduct.

Court Disposition

Application granted in part

Orders

  • Court sanctions and blesses the trustee's decision to provisionally allocate 40% of the trust assets to MS and her children, subject to further court sanction after the English proceedings.
  • Court sanctions and blesses the trustee's decision to provide written evidence and for its director to appear before the English court if required.