In the matter of The New Zealand Guardian Trust Company Ltd (trading as Perpetual Guardian) [2020] NZHC 1982

In the matter of The New Zealand Guardian Trust Company Ltd (trading as Perpetual Guardian) [2020] NZHC 1982

With no effective opposition and no utility in the trustee retaining funds, the Court ordered distribution of the remaining trust assets, allowed an adjustment of $76,000 in favour of Greg and Chris to account for Philip's benefit from occupation and costs caused by his conduct, directed a finite process for storage...

Source-derived case information.

Citation
[2020] NZHC 1982
Parties
Former Trustee/applicant: The New Zealand Guardian Trust Company Ltd (trading as Perpetual Guardian); Replacement Trustee/applicant: Perpetual Trust Limited (trading as Perpetual Guardian); Beneficiary/respondent: Gregory Heath; Beneficiary/respondent: Christopher Heath; Beneficiary/respondent: Philip Heath
Court
High Court
Jurisdiction
New Zealand
Judgment Date
7 August 2020
Procedural Posture
Trusts; Application Under S 66 Trustee Act 1956 / Hearing and Judgment (application for Distribution, Adjustment, Chattels Directions and Winding Up)
Outcome
Application granted in part: orders made for distribution of trust funds, adjustment in favour of Greg and Chris, directions for chattels, trustee indemnity and winding up of trusts
Legal Topics
Trust Administration, Distribution of Trust Assets, Adjustments Between Beneficiaries, Winding Up of Trusts, Trustee Indemnity, Disposal of Trust Chattels
Trusts Equity Civil Procedure Trust Administration Distribution of Trust Assets Adjustments Between Beneficiaries Winding Up of Trusts Trustee Indemnity +1 more

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Parties

The New Zealand Guardian Trust Company Ltd (trading as Perpetual Guardian)

Former Trustee/applicant

Perpetual Trust Limited (trading as Perpetual Guardian)

Replacement Trustee/applicant

Gregory Heath

Beneficiary/respondent

Christopher Heath

Beneficiary/respondent

Philip Heath

Beneficiary/respondent

Procedural Posture

Trusts; Application Under S 66 Trustee Act 1956 / Hearing and Judgment (application for Distribution, Adjustment, Chattels Directions and Winding Up)

Legal Issues

  1. 1 Whether the trusts' monies should be distributed to beneficiaries
  2. 2 Whether an adjustment to distributions is warranted to account for benefit received and costs incurred due to a beneficiary's conduct
  3. 3 What directions should be made as to chattels held in storage

Ratio Decidendi

With no effective opposition and no utility in the trustee retaining funds, the Court ordered distribution of the remaining trust assets, allowed an adjustment of $76,000 in favour of Greg and Chris to account for Philip's benefit from occupation and costs caused by his conduct, directed a finite process for storage and disposal of chattels (storage continued to 30 October 2020 with options for uplift or transfer of storage responsibility, thereafter trustee may dispose), confirmed indemnity for trustee and beneficiaries out of trust funds for costs related to administration and litigation, and ordered the trusts to be wound up on completion of those steps.

Court Disposition

Application granted in part: orders made for distribution of trust funds, adjustment in favour of Greg and Chris, directions for chattels, trustee indemnity and winding up of trusts

Orders

  • Distribute remaining trust income and capital after paying debts and expenses to beneficiaries Chris, Greg and Philip, subject to an adjustment of $76,000 in favour of Greg and Chris (to be distributed equally to them) and subject to confirmation from spouses/children that they do not seek separate interests
  • Perpetual Guardian to continue paying for storage of chattels until 30 October 2020; if Philip wishes to uplift chattels he must do so or arrange to assume storage costs by 30 October 2020; if he declines or does not arrange storage from 31 October 2020 Perpetual Guardian may dispose of remaining chattels as it sees...