Catchwords:
TRUSTS — Family discretionary trusts — Family trust settled by patriarch (G) — G also appointor of the trust with power to appoint a new trustee and additional trustees and to remove any trustees — Certain trust provisions impacted by G’s death— Specifically (a) whilst G’s family grew generationally the range of beneficial objects to whom income could be appointed was reduced on G’s death as appointor (b) no mechanism was provided for a new appointor and (c) the power of variation was limited by reference to G’s lifespan as appointor — Trust operated for approximately 14 years post G’s death without an appointor — Trustee sought orders principally pursuant to Trustee Act 1925 (NSW), s 86A to alter the power to vary the trust, to appoint a new appointor, to give the majority of ‘beneficiaries’ power to remove and substitute the appointor and to effectively reinstate the greater breadth of beneficial objects to whom income could be appointed to the position prior to the death of G — Held partial relief given – Appointor to be appointed (under inherent power) and approval of variation (under s 86A) for beneficial class to whom income could be appointed to be revised to the position pre G’s death - Plaintiff to reflect upon reasons with opportunity to approach the Court for further relief if need be EQUITY — Trusts — Approval of arrangements (proposals) for variation of trusts — Trustee Act 1925 NSW (Trustee Act), s 86A — Remedial nature of the legislation invites beneficial construction — Standing discussed — Trustees may apply (inter alia) on behalf of persons incapable of assenting or with no present entitlement — ‘Arrangement’ is terminology in the widest possible sense to cover any proposal which a person with standing may put forward for varying or revoking trusts EQUITY — Trusts — Approval of variation proposals — Trustee Act s 86A — Extent of jurisdiction — Appointors and varying trusts generally — Differing views in other jurisdictions under cognate legislation regarding whether the variation approval power permits the appointment of appointors and variation of trusts generally EQUITY — Trusts — Approval of variation proposals — Trustee Act s 86A — Relevance of Settlor’s purposes APPOINTORS — Discussion of extent of role and sources of appointment — Discussion regarding nature of character of role of appointor and power of appointment of trustees — Characterisation of role of appointor as fiduciary or otherwise depends on the terms of the trust and circumstances in each particular case EQUITY — Trusts — Court’s inherent jurisdiction —Equity preserves trusts, rather than destroying them and acts to perform or execute trusts, not to alter them TRUSTS — Appointors — Inherent jurisdiction — Court’s inherent power to appoint an appointor discussed TRUSTS — Advantageous dealings Trustee Act s 81 — Conferral of specific powers is by reference to management and administration of trust property TRUSTS —Rights of beneficiaries — ‘Rule’ in Saunders v Vautier — Nature of power WORDS & PHRASES – ‘appointor’