DOREEN BROWN TRUST FUND [2020] NZHC 449

DOREEN BROWN TRUST FUND [2020] NZHC 449

The court concluded that because the settlor's trust deed provided a gift over and Swimming Canterbury West Coast Incorporated's constitution aligns with the settlor's charitable purpose, the trustees were entitled to pay liabilities, transfer remaining assets to that charity, and thereafter wind up and dissolve the...

Source-derived case information.

Citation
[2020] NZHC 449
Parties
Applicant/trustee: J O Turpin; Applicant/trustee: M Morrison; Applicant/trustee: M F Toomey; Interested Party/respondent: Attorney-General; Subject Trust: The Doreen Brown Trust Fund; Proposed Beneficiary: Swimming Canterbury West Coast Incorporated; Settlor (deceased): Pearl Doreen Brown
Court
High Court
Jurisdiction
New Zealand
Judgment Date
10 March 2020
Procedural Posture
Application for Directions Under Trustees Act 1956 and Charitable Trusts Act 1957 / Application for Directions Resolved on the Papers
Outcome
Application granted in part; directions issued to trustees to pay liabilities, transfer remaining assets to Swimming Canterbury West Coast Incorporated and to wind up and dissolve the trust; liquidator appointed.
Legal Topics
Termination of Charitable Trust, Gift Over, Cy Près Alternative, Winding Up of Trust, Directions to Trustees
Trusts Charitable Trusts Equity Trustees Law Termination of Charitable Trust Gift Over Cy Près Alternative Winding Up of Trust +1 more

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Parties

J O Turpin

Applicant/trustee

M Morrison

Applicant/trustee

M F Toomey

Applicant/trustee

Attorney-General

Interested Party/respondent

The Doreen Brown Trust Fund

Subject Trust

Swimming Canterbury West Coast Incorporated

Proposed Beneficiary

Pearl Doreen Brown

Settlor (deceased)

Procedural Posture

Application for Directions Under Trustees Act 1956 and Charitable Trusts Act 1957 / Application for Directions Resolved on the Papers

  1. 1 Whether trustees may dispose of surplus trust assets to an alternative charity consistent with the settlor's gift over
  2. 2 Whether a scheme under Part 3 of the Charitable Trusts Act 1957 was viable or required
  3. 3 Whether the trustees could wind up and dissolve the trust after paying liabilities and transferring surplus

Ratio Decidendi

The court concluded that because the settlor's trust deed provided a gift over and Swimming Canterbury West Coast Incorporated's constitution aligns with the settlor's charitable purpose, the trustees were entitled to pay liabilities, transfer remaining assets to that charity, and thereafter wind up and dissolve the trust; appointment of M F Toomey as liquidator was appropriate.

Court Disposition

Application granted in part; directions issued to trustees to pay liabilities, transfer remaining assets to Swimming Canterbury West Coast Incorporated and to wind up and dissolve the trust; liquidator appointed.

Orders

  • Pay all costs, debts and liabilities of the Trust Fund, including costs of and incidental to the originating application for directions, out of the assets of the Trust Fund
  • Pay or dispose of all remaining assets of the Trust Fund to or for the benefit of Swimming Canterbury West Coast Incorporated (SCWC)