Courts Will Vary Trustees' Powers Where It Benefits The Trust

The High Court recently held that a trust document created by the 11th Duke of Marlborough for his descendants should be varied using the court's administrative powers to deal with trust property (section 57 Trustee Act 1925), because it would benefit the Trust and its beneficiaries.

The Trust created in 1986 consisted of 166 acres of agricultural land in Woodstock. The Trustees sought new powers to allow them to enter into a deed of covenant to pay part of the proceeds of sale of the Woodstock land to a charity company. The Trustees also sought the court's permission to allow retiring trustees to be discharged, even if only one trustee would remain.

The High Court held that the trust deed could be amended using the court's administrative powers because the court was satisfied that the Trustees did not have the proposed power and that the proposed power was needed to manage the Trust. The court also considered the effect of the variation on the beneficiaries, and