National debt fund worth £500m is held on charitable trusts (Attorney General v Zedra Fiduciary Services)

Article summary

Private Client analysis: HM Attorney General brought proceedings seeking the court’s approval to secure some of the funds held by the National Fund, a charitable trust set up in 1928 by Mr Gaspard Farrer (GF), a partner in Barings Bank, to help pay down 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. They sought an order that all or part of the funds were held on trust for GF’s estate, from which they would ultimately benefit. The court found that there was a valid charitable trust, and that it has jurisdiction to make a cy-près scheme for the transfer of the funds to reduce the national debt or for other charitable purposes (yet to be determined). Written by Alexandra Rogers,...