IN RE PHILIP RANGITAAWA TRUST [2014] NZHC 2571

IN RE PHILIP RANGITAAWA TRUST [2014] NZHC 2571

The court has inherent jurisdiction to rectify a trust deed to correct a clear omission reflecting settlor intent where the rectification is in the interests of minor and unborn beneficiaries; s64A of the Trustee Act 1956 provides an appropriate analogy for assessing detriment and benefit to such beneficiaries, and on the facts rectification to include Ruruwhenua Rangitaawa was ordered.

Citation
[2014] NZHC 2571
Parties
Plaintiff/trustee: Gibson Sheat Trustees Limited; Plaintiff/trustee: John William Rangitaawa; Interested Parties (represented): Minor and unborn beneficiaries of the Philip Rangitaawa Trust
Court
High Court
Jurisdiction
New Zealand
Judgment Date
21 October 2014
Procedural Posture
Trust Rectification / Judgment on Application for Rectification
Outcome
Application for rectification granted
Legal Topics
Rectification of Trust Deed, Variation of Trust, Inherent Jurisdiction, S64 a Trustee Act 1956, Minor and Unborn Beneficiaries
Trusts Equity Civil Procedure Rectification of Trust Deed Variation of Trust Inherent Jurisdiction S64 a Trustee Act 1956 Minor and Unborn Beneficiaries

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Parties

Gibson Sheat Trustees Limited

Plaintiff/trustee

John William Rangitaawa

Plaintiff/trustee

Minor and unborn beneficiaries of the Philip Rangitaawa Trust

Interested Parties (represented)

Procedural Posture

Trust Rectification / Judgment on Application for Rectification

Legal Issues

  1. 1 Whether the court has jurisdiction to rectify the terms of a trust deed
  2. 2 Whether s64A Trustee Act 1956 provides an appropriate analogy for rectification
  3. 3 Whether the omission of a named beneficiary was a mistake reflecting settlor intent

Ratio Decidendi

The court has inherent jurisdiction to rectify a trust deed to correct a clear omission reflecting settlor intent where the rectification is in the interests of minor and unborn beneficiaries; s64A of the Trustee Act 1956 provides an appropriate analogy for assessing detriment and benefit to such beneficiaries, and on the facts rectification to include Ruruwhenua Rangitaawa was ordered.

Court Disposition

Application for rectification granted

Orders

  • Philip Rangitaawa Trust deed rectified to include Ruruwhenua Rangitaawa as a beneficiary
  • Costs of the proceeding to be paid by the trust