RE PEERS [2023] NZHC 2120

RE PEERS [2023] NZHC 2120

Because all adult beneficiaries consented, the extension relates only to future persons contemplated by s 124(2)(c), the proposed variation does not reduce or remove any vested interest, and expert evidence shows the extension mitigates a substantial tax liability without detriment to beneficiaries, the court lawfully approved the extension of the distribution date under s 124.

Citation
[2023] NZHC 2120
Parties
Applicant and Trustee: Michael John Peers; Applicant and Trustee: Katherine Allison Peers
Court
High Court
Jurisdiction
New Zealand
Judgment Date
9 August 2023
Procedural Posture
Application Under the Trusts Act 2019 to Vary the Onslow Trust / Hearing on the Papers; Judgment Delivered
Outcome
Application granted; variation approved on behalf of future persons to extend the distribution date
Legal Topics
Variation of Trust, Court Approval Under S 124 Trusts Act 2019, Extension of Vesting/distribution Date, Future Beneficiaries, Tax Mitigation
Trusts Taxation Succession Variation of Trust Court Approval Under S 124 Trusts Act 2019 Extension of Vesting/distribution Date Future Beneficiaries Tax Mitigation

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Parties

Michael John Peers

Applicant and Trustee

Katherine Allison Peers

Applicant and Trustee

Procedural Posture

Application Under the Trusts Act 2019 to Vary the Onslow Trust / Hearing on the Papers; Judgment Delivered

Legal Issues

  1. 1 Whether the court should approve a variation under s 124 on behalf of future persons who may acquire a beneficial interest
  2. 2 Whether the proposed extension of the distribution date would prejudice vested interests or unborn beneficiaries
  3. 3 Whether settlor's intention can be ascertained and its weight in the exercise of discretion under s 124

Ratio Decidendi

Because all adult beneficiaries consented, the extension relates only to future persons contemplated by s 124(2)(c), the proposed variation does not reduce or remove any vested interest, and expert evidence shows the extension mitigates a substantial tax liability without detriment to beneficiaries, the court lawfully approved the extension of the distribution date under s 124.

Court Disposition

Application granted; variation approved on behalf of future persons to extend the distribution date

Orders

  • Approve, on behalf of future persons who may acquire a beneficial interest in the Onslow Trust, variation to extend the date of distribution under cl 2.3 of the trust deed dated 9 December 1992 to 8 December 2117
  • The trustees may take all actions necessary, advisable or expedient to give effect to this approval or incidental to it