Re Jury Family Trusts [2022] NZHC 568 .

Re Jury Family Trusts [2022] NZHC 568 .

Changed circumstances (presence of trading assets, unforeseeable tax exposure on vesting) justified court approval of the proposed trust variations under s124 because the variations do not extinguish any vested interest, the detriment to minors is minimal while the benefits (tax mitigation, preservation of asset protection, ability to apply capital for welfare) are substantial, and waiver of the consent of the remote adult beneficiary under s125 is appropriate; the court therefore approved the amended trust deeds (as amended by Counsel to assist) and ordered the applicants to pay costs of Counsel to assist.

Citation
[2022] NZHC 568
Parties
First Applicant and Settlor: Ian Keith Jury; Second Applicant and Settlor: Debbie Lee Jury; Counsel to Assist: G F Kelly and K H Lawrence
Court
High Court
Jurisdiction
New Zealand
Judgment Date
24 March 2022
Procedural Posture
Application for Court Approval of Trust Deed Variations Under Part 19 High Court Rules and Trusts Act 2019 / Judgment on Applications for Variation and Waivers (on the Papers)
Outcome
Application granted: trust deed variations approved on behalf of minor and unborn beneficiaries under s124; waiver of consent under s125 for a remote adult beneficiary; suggested amendments adopted.
Legal Topics
Variation of Trust, Vesting Date Extension, Consent on Behalf of Minors, Waiver of Beneficiary Consent, Perpetuity Extension, Appointment and Removal of Trustees
Trusts Family Tax Property Insolvency Variation of Trust Vesting Date Extension Consent on Behalf of Minors +3 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 5 Authorities cited 12 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Ian Keith Jury

First Applicant and Settlor

Debbie Lee Jury

Second Applicant and Settlor

G F Kelly and K H Lawrence

Counsel to Assist

Procedural Posture

Application for Court Approval of Trust Deed Variations Under Part 19 High Court Rules and Trusts Act 2019 / Judgment on Applications for Variation and Waivers (on the Papers)

Legal Issues

  1. 1 Whether the Court should approve trust deed variations under s124 Trusts Act 2019 on behalf of minor and unborn beneficiaries
  2. 2 Whether the Court should waive the consent of an adult potential beneficiary under s125 Trusts Act 2019
  3. 3 Whether extending the vesting period and allowing capital distributions is in beneficiaries' interests given tax and creditor consequences

Ratio Decidendi

Changed circumstances (presence of trading assets, unforeseeable tax exposure on vesting) justified court approval of the proposed trust variations under s124 because the variations do not extinguish any vested interest, the detriment to minors is minimal while the benefits (tax mitigation, preservation of asset protection, ability to apply capital for welfare) are substantial, and waiver of the consent of the remote adult beneficiary under s125 is appropriate; the court therefore approved the amended trust deeds (as amended by Counsel to assist) and ordered the applicants to pay costs of Counsel to assist.

Court Disposition

Application granted: trust deed variations approved on behalf of minor and unborn beneficiaries under s124; waiver of consent under s125 for a remote adult beneficiary; suggested amendments adopted.

Orders

  • Leave granted to commence application by originating application
  • Variation of the I K Jury Family Trust and D L Jury Family Trust in the form annexed to the applicants' memorandum dated 15 March 2022 is approved on behalf of: (i) the living grandchildren named (JACK IAN MISCHEFSKI, INDY LEAH MISCHEFSKI, COOPER ROSE MURRAY, BENTLEY FINN MURRAY); (ii) any future child, grandchild...