DOREEN JOYCE FREEMAN, ALAN RUSSELL FREEMAN, WARWICK STEPHEN FREEMAN AND ROBERT BRUCE FREEMAN AS TRUSTEES OF THE E R FREEMAN FAMILY TRUST v DOREEN JOYCE FREEMAN [2016] NZHC 2100

The Court granted approval under s 64A because the trustees and living beneficiaries unanimously supported the variation, counsel representing the contingent unborn beneficiaries supported the variation, the proposed extension of vesting to the perpetuity date was plainly intended to preserve the family business and the interests of the unborn beneficiaries were properly represented and considered co-extensive with those of current grandchildren, making the variation appropriate and within the Court's protective jurisdiction.

Citation: [2016] NZHC 2100
Parties: First Plaintiffs (civ 2016 442 54): DOREEN JOYCE FREEMAN, ALAN RUSSELL FREEMAN, WARWICK STEPHEN FREEMAN AND ROBERT BRUCE FREEMAN AS TRUSTEES OF THE E R FREEMAN FAMILY TRUST; Second Plaintiff (civ 2016 442 54): ERIC RUSSELL FREEMAN; First Defendant (civ 2016 442 54): DOREEN JOYCE FREEMAN; Second Defendant (civ 2016 442 54): ALAN RUSSELL FREEMAN; Third Defendant (civ 2016 442 54): WARWICK STEPHEN FREEMAN; Fourth Defendant (civ 2016 442 54): ROBERT BRUCE FREEMAN; Fifth Defendant (civ 2016 442 54): BROOKE NICOLE FREEMAN; Sixth Defendant (civ 2016 442 54): MEG ESTHER ADEANE FREEMAN; Seventh Defendant (civ 2016 442 54): LEONIE ROSE LOUIE ADEANE FREEMAN; Eighth Defendant (civ 2016 442 54): GRACE ELLEN ADEANE FREEMAN; Ninth Defendant (civ 2016 442 54): MOLLY ADEANE FREEMAN; Tenth Defendant (civ 2016 442 54): READE ERIC FREEMAN; Eleventh Defendant (civ 2016 442 54): SOFIA LOUISA FREEMAN; First Plaintiffs (civ 2016 442 55): ERIC RUSSELL FREEMAN, ALAN RUSSELL FREEMAN, WARWICK STEPHEN FREEMAN AND ROBERT BRUCE FREEMAN AS TRUSTEES OF THE D J FREEMAN FAMILY TRUST; Second Plaintiff (civ 2016 442 55): DOREEN JOYCE FREEMAN; First Defendant (civ 2016 442 55): ERIC RUSSELL FREEMAN; Second Defendant (civ 2016 442 55): ALAN RUSSELL FREEMAN; Third Defendant (civ 2016 442 55): WARWICK STEPHEN FREEMAN; Fourth Defendant (civ 2016 442 55): ROBERT BRUCE FREEMAN; Interested But Unrepresented Party for Whom Court Approval Sought: Contingent beneficiaries (unborn possible grandchildren/children of Alan, Warwick and Robert)
Court: High Court
Jurisdiction: New Zealand
Judgment Date: 5 September 2016
Procedural Posture: Application Under Trustee Act 1956 S 64 a (variation of Family Trusts) / Directions and Judgment on the Papers (consent Granted)
Outcome: Application granted; Court approved the amendments to the D J Freeman Family Trust and the E R Freeman Family Trust under s 64A of the Trustee Act 1956 on behalf of all unborn children who are or could be beneficiaries.
Legal Topics: Variation of Trust, Court Consent on Behalf of Unborn/contingent Beneficiaries, Perpetuity Period, Deed of Variation

Trusts Succession Equity Civil Procedure Variation of Trust Court Consent on Behalf of Unborn/contingent Beneficiaries Perpetuity Period Deed of Variation

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Parties

DOREEN JOYCE FREEMAN, ALAN RUSSELL FREEMAN, WARWICK STEPHEN FREEMAN AND ROBERT BRUCE FREEMAN AS TRUSTEES OF THE E R FREEMAN FAMILY TRUST

First Plaintiffs (civ 2016 442 54)

ERIC RUSSELL FREEMAN

Second Plaintiff (civ 2016 442 54)

DOREEN JOYCE FREEMAN

First Defendant (civ 2016 442 54)

ALAN RUSSELL FREEMAN

Second Defendant (civ 2016 442 54)

WARWICK STEPHEN FREEMAN

Third Defendant (civ 2016 442 54)

ROBERT BRUCE FREEMAN

Fourth Defendant (civ 2016 442 54)

BROOKE NICOLE FREEMAN

Fifth Defendant (civ 2016 442 54)

MEG ESTHER ADEANE FREEMAN

Sixth Defendant (civ 2016 442 54)

LEONIE ROSE LOUIE ADEANE FREEMAN

Seventh Defendant (civ 2016 442 54)

GRACE ELLEN ADEANE FREEMAN

Eighth Defendant (civ 2016 442 54)

MOLLY ADEANE FREEMAN

Ninth Defendant (civ 2016 442 54)

READE ERIC FREEMAN

Tenth Defendant (civ 2016 442 54)

SOFIA LOUISA FREEMAN

Eleventh Defendant (civ 2016 442 54)

ERIC RUSSELL FREEMAN, ALAN RUSSELL FREEMAN, WARWICK STEPHEN FREEMAN AND ROBERT BRUCE FREEMAN AS TRUSTEES OF THE D J FREEMAN FAMILY TRUST

First Plaintiffs (civ 2016 442 55)

DOREEN JOYCE FREEMAN

Second Plaintiff (civ 2016 442 55)

ERIC RUSSELL FREEMAN

First Defendant (civ 2016 442 55)

ALAN RUSSELL FREEMAN

Second Defendant (civ 2016 442 55)

WARWICK STEPHEN FREEMAN

Third Defendant (civ 2016 442 55)

ROBERT BRUCE FREEMAN

Fourth Defendant (civ 2016 442 55)

Contingent beneficiaries (unborn possible grandchildren/children of Alan, Warwick and Robert)

Interested But Unrepresented Party for Whom Court Approval Sought

Procedural Posture

Application Under Trustee Act 1956 S 64 a (variation of Family Trusts) / Directions and Judgment on the Papers (consent Granted)

Legal Issues

1 Whether the Court should approve the proposed variations to two family trusts under s 64A of the Trustee Act 1956 on behalf of unborn contingent beneficiaries
2 Whether the interests of unborn contingent beneficiaries can be treated as co-extensive with current beneficiaries for the purposes of granting consent
3 Whether extending vesting to the end of the perpetuity period is appropriate to preserve the family business

Ratio Decidendi

Court Disposition

Application granted; Court approved the amendments to the D J Freeman Family Trust and the E R Freeman Family Trust under s 64A of the Trustee Act 1956 on behalf of all unborn children who are or could be beneficiaries.

Orders

Directions made in terms of the applications for directions dated 5 September 2016 (with consequential variations from consideration on the papers)
Order approving under s 64A Trustee Act 1956, on behalf of all unborn children who are or could be beneficiaries of the D J Freeman Trust and the E R Freeman Trust, the amendments to each Family Trust as set out in the statements of claim (deed of variation)