Representation of BNP Paribas [2017] JRC 008 (12 January 2017)

Representation of BNP Paribas [2017] JRC 008 (12 January 2017)

The trustee's decision to distribute the trust fund to the settlor was made in good faith, after consultation with all beneficiaries (except G), was not vitiated by conflict of interest, and was within the range of decisions a reasonable trustee could make. The exclusion of G was justified by his conduct, lack of merit in his claims, and prior benefits received. The court approved the decision subject to indemnities and security, and pending resolution of the Singapore injunction and potential appeal.

Citation
[2017] JRC 008
Parties
Representor: BNP Paribas Jersey Trust Corporation Limited; First Respondent / Settlor: Settlor (mother of respondents); Seventh Respondent / Beneficiary / Former Protector: G (eldest son); Sixth Respondent / Beneficiary: F (second son); Respondents / Beneficiaries: Other siblings (unnamed)
Jurisdiction
Jersey
Judgment Date
12 January 2017
Procedural Posture
Trust Representation / Application for Court Approval of Trustee's Momentous Decision
Outcome
Application granted; trustee's decision approved.
Legal Topics
Trustee Powers, Court Approval of Trustee Decisions, Distribution of Trust Assets, Conflict of Interest, Taxation of Trust Distributions
Trust Law Private International Law Trustee Powers Court Approval of Trustee Decisions Distribution of Trust Assets Conflict of Interest Taxation of Trust Distributions

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Parties

BNP Paribas Jersey Trust Corporation Limited

Representor

Settlor (mother of respondents)

First Respondent / Settlor

G (eldest son)

Seventh Respondent / Beneficiary / Former Protector

F (second son)

Sixth Respondent / Beneficiary

Other siblings (unnamed)

Respondents / Beneficiaries

Procedural Posture

Trust Representation / Application for Court Approval of Trustee's Momentous Decision

Legal Issues

  1. 1 Whether the trustee's decision to distribute the entire trust fund to the settlor should be approved by the court as a proper exercise of its powers
  2. 2 Whether the trustee's decision is vitiated by conflict of interest or bad faith
  3. 3 Whether the exclusion of one beneficiary (G) from the distribution is reasonable

Ratio Decidendi

The trustee's decision to distribute the trust fund to the settlor was made in good faith, after consultation with all beneficiaries (except G), was not vitiated by conflict of interest, and was within the range of decisions a reasonable trustee could make. The exclusion of G was justified by his conduct, lack of merit in his claims, and prior benefits received. The court approved the decision subject to indemnities and security, and pending resolution of the Singapore injunction and potential appeal.

Court Disposition

Application granted; trustee's decision approved.

Orders

  • Trustee's decision to distribute the entire trust fund to the settlor is approved, subject to appropriate indemnities and security.
  • Implementation of the decision is restricted pending resolution of the Singapore injunction and any application by G to renew his appeal.