Cy près scheme approved for £600m charitable trust to be applied to reduce the National Debt (Attorney General v Zedra Fiduciary Services (UK) Ltd)

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 1928, Mr Gaspard Farrer (‘GF’), a partner in Barings Bank, set up a charitable trust called the National Fund, for the purpose of accumulating funds to pay down the National Debt. In November 2020 the court heard an application by HM Attorney General, who sought the court's approval to use the National Fund to reduce the National Debt. The claim was defended by the trustee, who agreed that the funds were charitable, but not that they should be used to reduce the National Debt. Members of GF's family also defended the claim, disputing the validity of the trust. The court found that there was a valid charitable trust and that it had jurisdiction to make a cy près scheme. Written by Alexandra Rogers, a managing associate at Foot Anstey LLP.