Re Steed's Will Trusts
The court will not approve a variation of a protective trust where it would defeat the settlor's purpose of protecting the beneficiary against her own weakness.
Facts
A testator left a farm on protective trusts for his housekeeper, Gladys Sandford, during her life. He was worried that she might be exploited by her brother, who was a spendthrift. She wanted the trust varied so that the farm would belong to her absolutely, and applied to the court under the Variation of Trusts Act 1958 to approve the variation on behalf of the unidentified persons who might take under the discretionary trust if her protected life interest was forfeited.
Legal principle
The Court of Appeal refused to approve the variation. Lord Evershed MR said that the court, in deciding whether to approve an arrangement, must take into account the intentions of the testator and the purpose of the trust. The protective trust had been set up precisely to protect the housekeeper against the risk of being exploited by her brother, and the variation would defeat that purpose. The court would not approve an arrangement that would undermine the testator's clear intention.
Related cases on trustees: duties, powers and variation of trusts
- Bartlett v Barclays Bank Trust Co Ltd (No 1) [1980] Ch 515
- Butler-Sloss v Charity Commission for England and Wales [2022] EWHC 974 (Ch), [2022] Ch 371
- Chapman v Chapman [1954] AC 429
- Cowan v Scargill [1985] Ch 270
- Goulding v James [1997] 2 All ER 239
- Harries v Church Commissioners for England [1992] 1 WLR 1241
- Learoyd v Whiteley (1887) 12 App Cas 727
- Re Lucking's Will Trusts [1968] 1 WLR 866
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This summary is for study and revision and is not legal advice. Although our case summaries are checked for accuracy, we do not guarantee that they are free from errors or omissions. Always read the full judgment for the court's reasoning.
