In the matter of the Y Trust, Royal Court Reported Judgment 25
March 2015.
Facts of the Case
Central to this case were the protracted and hostile divorce
proceedings between two beneficiaries of the Trust, referred to in
the judgment as the mother and the father. The divorce process was
first instigated in 2012 and a settlement was finally reached on
the third attempt in 2015 (the Agreement).
The Agreement provided for the division of the Trust's
property between the mother, the father and their children. While
the mother and children were beneficiaries of the Trust, the father
had inadvertently become an excluded beneficiary. It was therefore
proposed that the Trustee should close the class of beneficiaries
and terminate the Trust so that the beneficiaries could direct the
Trustee to distribute the assets of the Trust in accordance with
the Agreement. The Agreement accordingly included provisions to
limit the potential exposure of the Trustee in making a payment
