Blessing of momentous decision of trustees to make a significant distribution (In the matter of the Wigwam Trust)

Table of contents

• What are the practical implications of this case?
• What was the background?
• What did the court decide?
• Case details

Article summary

Private Client analysis: In this case, HSBC Trustee (CI) Ltd (the trustee) sought the blessing of the Jersey court for an in principle decision it had made to distribute an amount equivalent to 50% of the value of the trust fund amounting to several $US 100m, to a corporate beneficiary established for charitable and philanthropic objects. The Jersey court held that it would bless and approve the trustee’s decision having considered the background to the trust and the family’s charitable and philanthropic aims. The Jersey court applied the established test under Jersey law but specifically focused on what would amount to a ‘momentous’ decision given the facts of the case. The court also held that ‘benefit’ from the perspective of minor and unborn beneficiaries can go beyond mere financial benefit. Written by Nigel Sanders, partner at Walkers (Jersey) LLP.