The Marianne Caughey Smith-Preston Memorial Rest Homes Trust Board [2018] NZHC 3014

The Marianne Caughey Smith-Preston Memorial Rest Homes Trust Board [2018] NZHC 3014

Clause 5(53) of the will establishes the primary charitable purpose as the provision and operation of Rest Home(s) for aged, infirm or impecunious women; outdoor relief is authorised only as an ancillary adjunct to the Rest Home purpose and not as a standalone primary purpose; the Court has jurisdiction under s66 to give directions; trustees have power under the will and s14 Trustee Act 1956 to sell Upland Home and apply proceeds for the Trust's purposes; the Trust Board's proposed broad direction permitting general outdoor relief was declined and variation should proceed by appropriate scheme if required.

Citation
[2018] NZHC 3014
Parties
Applicant (trust Board): The Marianne Caughey Smith-Preston Memorial Rest Homes Trust Board; Intervener (on Behalf of the Crown Supervising Charities): Attorney-General; Settlor / Testatrix: Marianne Caughey Preston (deceased)
Court
High Court
Jurisdiction
New Zealand
Judgment Date
20 November 2018
Procedural Posture
Application for Directions Under S 66 Trustee Act 1956 Concerning a Charitable Trust / Hearing on Interpretation of Trust Deed and Trustee Powers; Judgment on Application for Directions
Outcome
Application granted in part and refused in part: directions interpreting beneficiary class and confirming trustee powers to apply funds for Rest Home purposes and to sell Upland Home were granted; direction authorising standalone general outdoor relief was refused; costs of proceedings ordered to be paid from the...
Legal Topics
Interpretation of Trust Deed, Section 66 Trustee Act Directions, Cy Pres / Scheme Procedure, Trustee Powers to Sell Trust Property, Indoor Vs Outdoor Relief
Trusts Charitable Trusts Charities Regulation Equity Property Law Interpretation of Trust Deed Section 66 Trustee Act Directions Cy Pres / Scheme Procedure +2 more

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Parties

The Marianne Caughey Smith-Preston Memorial Rest Homes Trust Board

Applicant (trust Board)

Attorney-General

Intervener (on Behalf of the Crown Supervising Charities)

Marianne Caughey Preston (deceased)

Settlor / Testatrix

Procedural Posture

Application for Directions Under S 66 Trustee Act 1956 Concerning a Charitable Trust / Hearing on Interpretation of Trust Deed and Trustee Powers; Judgment on Application for Directions

Legal Issues

  1. 1 Proper construction of clause 5(53) of the will to identify the Trust's purpose
  2. 2 Whether the Trust empowers standalone 'outdoor relief' as a primary purpose or only as an adjunct to Rest Homes
  3. 3 Scope of the Court's jurisdiction under s 66 Trustee Act 1956 to give directions

Ratio Decidendi

Clause 5(53) of the will establishes the primary charitable purpose as the provision and operation of Rest Home(s) for aged, infirm or impecunious women; outdoor relief is authorised only as an ancillary adjunct to the Rest Home purpose and not as a standalone primary purpose; the Court has jurisdiction under s66 to give directions; trustees have power under the will and s14 Trustee Act 1956 to sell Upland Home and apply proceeds for the Trust's purposes; the Trust Board's proposed broad direction permitting general outdoor relief was declined and variation should proceed by appropriate scheme if required.

Court Disposition

Application granted in part and refused in part: directions interpreting beneficiary class and confirming trustee powers to apply funds for Rest Home purposes and to sell Upland Home were granted; direction authorising standalone general outdoor relief was refused; costs of proceedings ordered to be paid from the...

Orders

  • The phrase 'aged infirm or impecunious' in clause 5(53) is to be read disjunctively as 'aged and/or infirm and/or impecunious'.
  • The Trust Board has power to apply the Trust Fund to meet the Trust's purposes as identified in this judgment, namely the establishment and operation of Rest Home(s) for the benefit of aged, infirm or impecunious women, and associated benefits ancillary to those Homes.