Re PV Trust Services Limited [2017] NZHC 2957

Re PV Trust Services Limited [2017] NZHC 2957

Section 66 of the Trustee Act 1956 authorises a trustee to seek directions for a momentous proposed course of dealing without the need to demonstrate genuine doubt; the court will approve (give its 'blessing' to) a proposed exercise of trustee discretion where the trustee has lawful powers, has genuinely formed the view, has provided full disclosure, no conflict of interest exists, and the proposal is one which a reasonable body of trustees properly instructed could reach. Applying those principles, the Court held PV Trust Services Ltd had the power, had acted appropriately, and its proposed administration and distribution of the Honoris Trust was proper and lawful and ordered it may...

Citation
[2017] NZHC 2957
Parties
Applicant/trustee: PV Trust Services Limited; Trust: Honoris Trust; Settlor: Alsira Rosa Heche de Libedinsky; Named Beneficiary: Dulce; Beneficiary (family Employee): MM; Beneficiary (charitable): Foundation; Potential Remainder Beneficiary: SF; Potential Remainder Beneficiary: JG; Former Trustee: PVCI New Zealand Trust Ltd
Court
High Court
Jurisdiction
New Zealand
Judgment Date
30 November 2017
Procedural Posture
Application for Directions Under S 66 Trustee Act 1956 (trust Administration) / Hearing and Judgment on Application for Directions (final Disposition)
Outcome
Direction granted
Legal Topics
Trustee Directions Under S66, Appointment of Beneficiaries, Distribution of Trust Capital, Letters of Wishes and Settlor Intent, Court Blessing of Momentous Trustee Decisions, Effect of Expiry of Trust With No Final Beneficiaries
Trusts Equity Civil Procedure Succession Trustee Directions Under S66 Appointment of Beneficiaries Distribution of Trust Capital Letters of Wishes and Settlor Intent +2 more

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Parties

PV Trust Services Limited

Applicant/trustee

Honoris Trust

Trust

Alsira Rosa Heche de Libedinsky

Settlor

Dulce

Named Beneficiary

MM

Beneficiary (family Employee)

Foundation

Beneficiary (charitable)

SF

Potential Remainder Beneficiary

JG

Potential Remainder Beneficiary

PVCI New Zealand Trust Ltd

Former Trustee

Procedural Posture

Application for Directions Under S 66 Trustee Act 1956 (trust Administration) / Hearing and Judgment on Application for Directions (final Disposition)

Legal Issues

  1. 1 Whether a trustee may seek directions under s66 where it has power and no genuine doubt (seeking the court's 'blessing')
  2. 2 Whether the proposed appointment of beneficiaries and immediate distribution of the entire trust estate is proper and lawful
  3. 3 What weight to give letters of wishes, incomplete handwritten notes and a deceased beneficiary's will

Ratio Decidendi

Section 66 of the Trustee Act 1956 authorises a trustee to seek directions for a momentous proposed course of dealing without the need to demonstrate genuine doubt; the court will approve (give its 'blessing' to) a proposed exercise of trustee discretion where the trustee has lawful powers, has genuinely formed the view, has provided full disclosure, no conflict of interest exists, and the proposal is one which a reasonable body of trustees properly instructed could reach. Applying those principles, the Court held PV Trust Services Ltd had the power, had acted appropriately, and its proposed administration and distribution of the Honoris Trust was proper and lawful and ordered it may...

Court Disposition

Direction granted

Orders

  • It is proper and lawful for PV Trust Services Ltd to administer and distribute the Honoris Trust as set out in the amended originating application dated 3 October 2017.
  • Set aside and continue to hold on trust US$1,000,000 for the purpose of making payments of US$2,000 per month to MM for the remainder of her life.