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.
