Chapter 10 Interactive key cases
Raised the question of the court’s inherent jurisdiction to vary a trust to the financial advantage of the beneficiaries.
Defined and narrowed the court’s inherent jurisdiction to vary a trust to cases of emergency and the resolution of ‘genuine disputes’ over beneficial interests. Led directly to the enactment of the VTA 1958.
The court approved the variation of a trust under the VTA 1958 on behalf of as yet unborn children, despite extrinsic evidence that the settlor’s intentions regarding the sui juris beneficiaries ran contrary to the changes.
The settlor’s intention is only of relevance insofar as it relates to the beneficial interest of the beneficiary on whose behalf the court is asked to consent. However, it will not necessarily outweigh financial benefits.
The court approved a variation dispensing of the settlor’s life interest in favour of life interests for his two sons.
The court cannot approve variations which amount to a ‘resettlement’ of the trust on entirely different terms.
Proposal to move trust (and beneficiaries) to Jersey for financial advantage rejected in favour of allowing the children to grow up in England.