Background
John Nee was instructed concerning a family trust funded principally by a death-in-service benefit. The client understood it was intended to support the deceased’s children when older, for education, housing or business.
Disputed withdrawals led the client to question the trustees’ actions and earlier advice describing another family member as an “effective settlor” with beneficial rights beyond those the client understood to be provided.
Relevant Law
The dispute concerned the proper construction of the trust deed, trustees’ fiduciary duties and beneficiaries’ rights. Letters of wishes may inform trustees’ discretion but do not ordinarily override the trust instrument.
Issues
The issues included the settlor’s legal position, the rights of contingent beneficiaries and whether the withdrawals were authorised. The client also questioned the trust’s effectiveness and raised possible professional negligence in its establishment.
The case involved competing interpretations of the documents, different views of the deceased’s intentions and strained family relationships. A responsible assessment required the complete trust deed, will, letters of wishes and earlier advice.
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