In re X Trust v [2002] JLR 377 (13 June 2002)

In re X Trust v [2002] JLR 377 (13 June 2002)

It is not a fraud on the trustees' power to make a distribution to a beneficiary under a discretionary trust to enable compliance with a financial provision order on divorce, even if the non-beneficiary wife ultimately benefits from the funds released.

Citation
[2002] JLR 377
Parties
Applicant: X Trust; Beneficiary: (Unnamed beneficiary); Non Beneficiary: (Unnamed wife)
Jurisdiction
Jersey
Judgment Date
13 June 2002
Procedural Posture
Trust Application / Judgment
Outcome
Application granted
Legal Topics
Fraud on Power, Discretionary Trust, Financial Provision on Divorce
Trusts Family Law Fraud on Power Discretionary Trust Financial Provision on Divorce

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 1 Party arguments 2
Sign in to unlock

Parties

X Trust

Applicant

(Unnamed beneficiary)

Beneficiary

(Unnamed wife)

Non Beneficiary

Procedural Posture

Trust Application / Judgment

Legal Issues

  1. 1 Whether a distribution by trustees to a beneficiary under a discretionary trust, enabling compliance with a financial provision order on divorce, constitutes a fraud on the trustees' power when the non-beneficiary wife ultimately benefits

Ratio Decidendi

It is not a fraud on the trustees' power to make a distribution to a beneficiary under a discretionary trust to enable compliance with a financial provision order on divorce, even if the non-beneficiary wife ultimately benefits from the funds released.

Court Disposition

Application granted

Orders

  • Trustees may make the distribution to the beneficiary as requested