A Trustees Limited -v- W, X, Y and Z [2008] JRC 097

What considerations are involved when a trustee asks the Court to approve its decisions?

Facts

At the material time, A Trustees Limited (the “Trustee”) had become the sole trustee of a discretionary settlement (the “Settlement”) established in 1987 for the benefit of V and W (respectively, husband and wife) and their issue.
V and W separated in 2004 and divorce proceedings were issued a year later. As part of moving towards a financial settlement, V and W agreed to split their assets in a particular way and, to that end, the Trustee was invited to create a separate sub-fund (the “W Fund”) out of the Settlement which would be for the benefit of W, the children and any remoter issue. The Trustee agreed to this and the W Fund (of which V was not a beneficiary) was established in May 2006. Approximately £22 million and a one-third interest in a Bermudan property were transferred from the Settlement to the W Fund.

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