December 2011: Varying a Trust Deed? Be Careful!
Here's a warning from a recent Supreme Court of Appeal case - don't amend the provisions of a trust deed without first checking whether or not you need to get consent from the beneficiaries.
In the case in question, a father originally nominated his two minor children as beneficiaries of a trust. But, after a bitterly disputed divorce and remarriage, he and the trustees agreed to vary the trust's provisions substantially. Amongst other things, the original beneficiaries were no longer to be guaranteed any benefit, but were reduced to the status of potential beneficiaries along with the father's new wife, and her children from a previous marriage.
In the case in question, a father originally nominated his two minor children as beneficiaries of a trust. But, after a bitterly disputed divorce and remarriage, he and the trustees agreed to vary the trust's provisions substantially. Amongst other things, the original beneficiaries were no longer to be guaranteed any benefit, but were reduced to the status of potential beneficiaries along with the father's new wife, and her children from a previous marriage.