New world order for trusts?: The meaning of ‘prior interest’ in section 32 – Wilberforce Chambers

Posted July 2nd, 2021 in chambers articles, news, trusts by sally

‘The statutory power of advancement conferred by section 32 of the Trustee Act 1925 is a valuable tool for trustees given them as an aid to enable trust property to be used for the fullest benefit of a beneficiary with an interest in capital: see Lord Inglewood v IRC [1983] 1 WLR 366, 372–3 per Fox LJ, a judgment which contains a useful catalogue of ways in which the power has been exercised.’

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Wilberforce Chambers, 24th June 2021

Source: www.wilberforce.co.uk

Axminster: Limitation and forfeiture revisited after Lloyds – Wilberforce Chambers

Posted July 2nd, 2021 in chambers articles, forfeiture, limitations, news, pensions, trusts by sally

‘The High Court (Morgan J.) has delivered judgment in Punter Southall Governance Services Ltd v Hazlett [2021] EWHC 1652 (Ch), concerning the Axminster Carpets Group pension plan. It is now the leading judgment on limitation in claims by pension scheme beneficiaries for arrears. It also gives key guidance on the court’s power to award interest on such claims and on the interpretation and exercise of forfeiture clauses, and makes certain findings on the scope of s.37 of the Pension Schemes Act 1993. This summary only scratches the surface of a detailed 347-paragraph judgment covering several different areas of pensions and trusts law. A more flippant title might have been: “The Axminster Carpets case: a pile of issues…”’

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Wilberforce Chambers, 24th June 2021

Source: www.wilberforce.co.uk

Court refuses to approve tainted fiduciary decision making (Schumacher v Clarke) – New Square Chambers

Posted February 18th, 2021 in charities, conflict of interest, fiduciary duty, news, trusts, wills by sally

‘The court was faced with a category 2 and 3 Public Trustee v Cooper application principally for the approval of a momentous decision. The court was initially asked to approve the entirety of a settlement reached between four trustees split into two camps but later asked to approve only the dispositive elements of the settlement. The settlement unusually resolved disputes between the trustees rather than between trustees and beneficiaries or third parties. The court was concerned with mutual allegations of inappropriate action as fiduciaries and the failure of both sides to manage conflicts of interest in arriving at a settlement. After stressing that such factors could impair the decision reached and which the court was asked to approve, the court refused its approval of part of the settlement. Written by James Saunders, barrister, at New Square Chambers.’

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New Square Chambers, 11th February 2021

Source: www.newsquarechambers.co.uk

The modern family – the interpretation of children, spouses and civil partners in older trust deeds – Wilberforce Chambers

‘It has become cliché to say that modern familial arrangements are vastly different now to how they were 50 years ago, but that does not make it any less true. In 2019, almost half of all births were outside of a marriage or civil-partnership, and 3,440 children were adopted from local authority care. With the passage of the Marriage (Same-Sex Couples) Act 2013, and the Civil Partnership (Opposite Sex Couples) Regulations 2019, the range of relationships that can be legally recognised, and the form that this recognition takes are also very different. Given the age of many settlements, traditional definitions of “children” or “spouse” can cause real difficulties.’

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Wilberforce Chambers, 17th February 2021

Source: www.wilberforce.co.uk

Law firm ordered to pay £1m for registration error – Legal Futures

‘The High Court has ordered a defunct Manchester law firm which failed to register a restriction against a house at the Land Registry to pay over £985,000 in damages for professional negligence.’

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Legal Futures, 15th February 2021

Source: www.legalfutures.co.uk

Time to act: the UK Trust Register and the Fifth Money Laundering Directive – Wilberforce Chambers

Posted January 22nd, 2021 in chambers articles, EC law, HM Revenue & Customs, news, trusts by sally

‘HMRC’s registration requirements for trusts may not have been the focus of many practitioners’ attention during 2020, but the 31 January deadline for Trusts Registration Service notifications is likely to focus minds not just on annual compliance requirements, but also on the myriad of changes that have taken place over the past year.’

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Wilberforce Chambers, 19th January 2021

Source: www.wilberforce.co.uk

Univar UK Ltd v Smith [2020] EWHC 1596 (Ch): rectification of pension schemes after FSHC – Wilberforce Chambers

Posted June 25th, 2020 in indexation, news, pensions, rectification, trusts by sally

‘On 19 June 2020, Mr Justice Trower handed down judgment granting rectification of the Univar Company Pension Scheme (1978), in the first pension rectification claim decided after a full trial since the landmark decision of the Court of Appeal in FSHC Group Holdings Ltd v GLAS Trust Corp Ltd [2019] EWCA Civ 1361.’

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Wilberforce Chambers, 22nd June 2020

Source: www.wilberforce.co.uk

100 years on the Statute Book but only one contested case…until now…. – Tanfield Chambers

Posted June 4th, 2020 in charities, Christianity, enfranchisement, leases, news, trusts by sally

‘There was no dispute about the facts. The Claimant church is a charitable company limited by guarantee, which took a 30 year lease of a former industrial unit from the Defendants and converted it into a Church and community centre. That was the permitted use under the lease.’

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Tanfield Chambers, 22nd May 2020

Source: www.tanfieldchambers.co.uk

A dog’s breakfast; defective trust instruments rescued – Bowack v Saxton [2020] EWHC 1049 (Ch) – New Square Chambers

Posted June 1st, 2020 in chambers articles, documents, news, trusts by sally

‘In 2013 the Claimants paid £750,000 to establish two discretionary trusts containing AXA offshore bonds in the Isle of Man. In a meeting with a financial planner from Hargreaves Lansdown, they both executed standard form declarations of trust intended to appoint themselves and their daughter as trustees, and their daughter as principal beneficiary.’

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New Square Chambers, 26th May 2020

Source: www.newsquarechambers.co.uk

Business and Property: ToLATA update May 2020 – St Ives Chambers

Posted May 28th, 2020 in appeals, chambers articles, land registration, news, trusts, valuation by sally

‘By way of observation, the principle set out in Bagum-v-Hafiz [2015] EWCA Civ 801 whereby a beneficiary under a trust of land may effectively buy out the others interests appears to be increasingly applied and it has been recently considered in the Court of Appeal case of In the matter of the Estate of Roger Kingsley sub nom (1) Karim Sophie Kingsley (2) Aaron Richard Playle (as Executors of the Estate of Roger John Kingsley) v Sally Margaret Kingsley [2020] EWCA Civ 297. There, the Court of Appeal rejected the appeal that in a farming partnership case the judge had not been entitled to make an orderforsale at a court-assessed price rather than ordering a sale on the open market. Unlike a trustee, the court was not required to get the best price for the property. The Court rejected the notion that Bagum required some sort of valuation threshold to be overcome. On the contrary, Bagum was authority for the proposition that valuation (and the risk that the court-assessed value would not necessarily be the same as the price in an open market sale) was clearly a discretionary matter.’

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St Ives Chambers, May 2020

Source: www.stiveschambers.co.uk

An Introduction to Cryptocurrency – New Square Chambers

‘The first thing to say is that you should learn as much about holding and transacting with cryptocurrencies as you have time for.’

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New Square Chambers, March 2020

Source: www.newsquarechambers.co.uk

Will construction—failure of trust (Jeffreys and others v Scruton and others) – Wilberforce Chambers

Posted March 17th, 2020 in chambers articles, news, trusts, wills by sally

‘The Will established a discretionary trust for the testatrix’s issue with a standard power to add any person as an additional beneficiary during the 80-year trust period and wide powers to appoint and apply capital and income. It directed that ‘in default of and subject to any exercise of’ those powers, the trustees should hold the trust fund (i) on expiry of the trust period for her issue (if any) then living and (ii) ‘if at any time the trusts declared by the foregoing provisions fail’ on trust for her nephews and nieces absolutely (subject to attaining age 18 or previously marrying). The testatrix had one child, who predeceased her. The question raised by the trustees was whether the power to add a beneficiary remained exercisable, or whether the trust fund was held exclusively for the nephews and nieces. The court held that upon the testatrix’s death the discretionary trusts had failed—that the power to add was not exercisable—and that the trust fund was accordingly held on trust for the class of nephews and nieces entitled under Clause 5(c)(iii) of the Will.’

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Wilberforce Chambers, 12th March 2020

Source: www.wilberforce.co.uk

Co-ownership and declarations of trust – Family Law

Posted March 12th, 2020 in land registration, news, trusts by tracey

‘Where a client owns or plans on owning a property jointly with someone else, there are a number of things that should be considered.’

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Family Law, 11th March 2020

Source: www.familylaw.co.uk

Naturalist who wanted to rewild family farm loses 15-year legal battle with his brother, as judge rules he cannot prevent sale – Daily Telegraph

‘A naturalist who wanted to rewild the family farm has lost a 15-year legal battle with his brother after a judge ruled he cannot prevent the sale.’

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Daily Telegraph, 23rd January 2020

Source: www.telegraph.co.uk

Section 4 Inheritance (Provision for Family and Dependants) Act 1975: Standstill Agreements – Becket Chambers

Posted December 10th, 2019 in news, stay of proceedings, time limits, trusts, wills by sally

‘Earlier this year the conflicting authorities of Bhusate v Patel [2019] EWHC 470 (Ch) and Cowan v Foreman and others [2019] EWHC 349 (Fam) cast doubt on the use of standstill agreements in respect of claims intended to be brought under section 2 of the Inheritance (Provision for Family and Dependants) Act 1975 (“the Act”). Following the determination of the appeal in the latter case that uncertainty has to a large extent been resolved.’

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Becket Chambers, 4th December 2019

Source: becket-chambers.co.uk

International charitable trusts and IHT exemption – Wilberforce Chambers

Posted November 26th, 2019 in charities, inheritance tax, news, trusts by sally

‘The Supreme Court, in the recent decision of Routier v Revenue and Customs Commissioners (No 2) [2019] UKSC 43, [2019] 3 WLR 757, has provided valuable guidance as to the scope of s. 23 of the Inheritance Tax Act 1984 (which exempts gifts to charities from IHT). The case is a welcome decision for private clients and their estate planners wishing to support international charitable causes while simultaneously benefitting from reduced liability to inheritance tax.’

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Wilberforce Chambers, 8th November 2019

Source: www.wilberforce.co.uk

Disqualifying a church pastor from charity trusteeship: Phelps – Law & Religion UK

Posted October 14th, 2019 in appeals, charities, disqualification, news, trusts by tracey

‘The First-tier Tribunal (Charity) has dismissed the disqualification appeal from a former church pastor who was banned from being a charity trustee for ten years after the Charity Commission concluded, inter alia, that he had used charitable funds for foreign trips that did not appear to be for charitable purposes.’

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Law & Religion UK, 14th October 2019

Source: www.lawandreligionuk.com

Bleak Choses? Trusting in equity – Practical Law: Construction Blog

Posted October 10th, 2019 in assignment, equity, news, third parties, trusts, warranties by tracey

‘For many common lawyers – certainly me – trusts and equity seem exotic things. At one point, I supposed the closest I would get to equity in action was by reading Bleak House, which in length and majesty even rivals some of the equity textbooks. But in this (as many other things) I was proved wrong. One cannot properly understand the law of assignment – a bedrock of the commercial construction lawyer’s practice – without comprehending equitable assignment. And it is at the outer fringes of assignment where one may bump – or even lapse – into trusts.’

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Practical Law: Construction Blog, 9th October 2019

Source: constructionblog.practicallaw.com

Out of time Inheritance Act claim – use of standstill agreements and hope for late claims? – No. 5 Chambers

Posted August 29th, 2019 in appeals, news, time limits, trusts, wills by sally

‘In a decision handed down on 30th July 2019, the Court of Appeal have overturned a controversial first instance decision. Mostyn J had refused permission to bring a claim under s4 Inheritance (Provision for Family and Dependants) Act 1975. The substance of the claim under the Act related to whether a beneficial interest under a discretionary trust, rather than outright provision, failed to make reasonable provision for a spouse. The first instance decision created a stir because, among other findings, Mostyn J made obiter comments that it was not appropriate for parties to enter into ‘stand still agreements’ as an attempt to extend the 6-month time limit for bringing claims under the Act whilst negotiations were underway.’

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No. 5 Chambers, 7th August 2019

Source: www.no5.com

Akcil & Ors v Koza Ltd & Anor [2019] UKSC 40 – Hardwick Chambers

‘The first respondent (“Koza Ltd”) was a private company incorporated in England in March 2014. Koza Ltd was a wholly owned subsidiary of the sixth appellant (“Koza Altin”), a publicly listed company incorporated in Turkey and part of a group of Turkish companies known as the Koza Ipek Group (“the Group”). The Group was formerly controlled by the second respondent (“Mr Ipek”).’

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Hardwicke Chambers, 22nd August 2019

Source: hardwicke.co.uk