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1 - The Role of the Courts Today in the Administration of Trusts

from Part I

Published online by Cambridge University Press:  19 April 2018

Richard C. Nolan
Affiliation:
University of York
Kelvin F. K. Low
Affiliation:
City University of Hong Kong
Tang Hang Wu
Affiliation:
Singapore Management University
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Summary

This chapter examines the important and all-pervasive role of the courts in supervising, and assisting in, the administration of trusts. It addresses the rectification of trust documents, which is often particularly important in the context of taxation. It considers the landmark decision of the UK Supreme Court in Pitt v. Holt [2013] 2 AC 108 and its implications. It goes on to examine the guidance a court can give to trustees as to the lawful exercise of their discretion, a vital aid to the proper execution of modern complex settlements that give major dispositive and administrative discretions to trustees. One important example of guidance to trustees is Beddoe orders, authorising trustees to litigate with the security of knowing that their costs can be met out of the trust fund. This is something examined further in chapter 7. Equally important are the court’s directions to trustees where beneficiaries of the trust are involved in litigation. Other vital aspects surveyed in this chapter of the court’s involvement in the administration of a trust are applications by beneficiaries for access to trust documents, and guidance in the final distribution of trust funds.
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Publisher: Cambridge University Press
Print publication year: 2018

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