576 - Cambridge University Press

Cambridge University Press978-1-107-17049-0 — Trusts and Modern Wealth ManagementEdited by Richard C. Nolan , Kelvin F. K. Low , Tang Hang Wu IndexMore Information

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INDEX

A v. A and St George Trustees Limited,55, 350, 374

Abacus Trust Co (Isle of Man)v. Barr, 196

Abdel Rahman v. Chase Bank (CI) TrustCo, 40

account surcharge, by beneficiary, 281accountability, of trustees, 37, 166,

233, 493ACDTridon Inc. v. Tridon Australia Pty

Ltd, 82, 120, 121Achilleas (Transfield Shipping Inc.

v. Mercator Shipping Inc.), 333Act Against Fraudulent Deeds, Gifts,

Alienations, 537Act for determining Differences by

Arbitration 1698, 123action, third-party power of, 59

lawfulness, 60practical problems, 67–68

Adamson, ex parte, 314administrative jurisdiction of the

court, 1affirmation, 440Agip (Africa) Ltd v. Jackson, 535agreement, arbitration acts as, 104Agricultural Land Management Ltd

v. Jackson (No. 2), 294AIB Group (UK) plc v. Mark Redler &

Co. Solicitors, 7, 195, 275, 283,292–297, 307, 311–312, 314,324, 327, 339

criticism, 294Akai case, 320, 321Ali Shipping Corp. v. Shipyard

Trogir, 79alienability, principles, 259

alienationof property, rule against restraints

on, 259rule against, 266–269

‘all in it together’ principle, 529,530, 532

abrogation of, 565Allcard v. Skinner, 434Als Memasa v. UBS AG, 409Alsop Wilkinson v. Neary, 29, 224, 225Alternative Australian Trusts Act

(AATA), 458–485ASIC and FSC, 484Australia as federation and financial

centre, 477–479commercial trusts chapter, 482conclusion, 485constitutional feasibility, 479design, 479–480financial services and trust law

reform, 458–460foreign trusts chapter, 482licensing and registration, 480–481licensing subsets, 482scope, 481–484trustee of, 481

amendment powers, 211No Fetter rule and, 194

Andeutungstheorie (‘theory ofintimation’), 525

anger, 572–573ante-nuptial settlements, 348Antle v. Canada, 160appointment

power of, 68power over capital, 54

AQ Revocable Trusts, Re, 44, 45

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arbitrationas attractive option for settlors, 78as separable clause, 453confidential nature, 78equitable, historical instances, 85–88inappropriateness for internal trust

disputes, 81judicial control under statutory

provisions, 122legislative reform and regulatory

competition, 123–128privacy of proceedings, 79remedies available, 84repugnancy, 98–100survival of rescission of contract, 452

Arbitration Act 1889, 90, 118Arbitration Act 1950, 92Arbitration Act 1979, 92, 93Arbitration Act 1996, 92, 102, 107, 118,

454, 456Arbitration Acts, 4arbitration agreements, non-

signatories and, 110arbitration clauses, 3, 76–129

enforceability, 100–123, 128under Arbitration Acts, 100–107under court’s inherent

jurisdiction, 107–116under other statutes, 116–121

model from International Chamberof Commerce, 80

arbitration law, England reforms in1970s, 123

arbitration proceedings, confidentialityof, 123

Arizona, Court of Appeals, 126Armitage v. Nurse, 150Arthur, Hugh, 170assessment date, compensatory remedies

for breach of trust, 328–329asset protection, 467

by trusts, 365, 503assets, protecting against settlor’s

creditors, 517assignability

of contractual right, contractualstipulations restricting, 268

of rights, 261

assignment, 104, 255assignor object, 263

as possible appointee, 263ATC (Cayman) Ltd v. Rothschild Trust

Cayman Limited, 187, 189,208, 213

Atkinson, Tony, 570tax and duty proposals, 570

Attorney Generalin Singapore, 497role in Bahamas, 507

Auriol v. Smith, 88Austin J, 120Australia, 120

case law, 176Commonwealth Constitution, 479competition and trust law reform,

473–476Hong Kong, 475–476Singapore, 474–475

courts, and client sophistication, 389deficiencies with substantive trust

law principles, 468–473commercial trust insolvency,

472–473rule against perpetuities, 469–470rule against Saunders v. Vautier,

470–472Family Law Act 1975, 541family trusts in, 460Federal Court of Appeal, on

unsophisticated clients, 412High Court, 105, 123, 181, 244, 319

on privacy of arbitration, 79Managed Investment Schemes

(MISs) in, 461nature of trusts in, 460–462Privy Council, 80rule against restraints on

alienation, 267Taxation Office, 461trust law, 13, 473trust law modernization, 465–468

changing context, 465changing customer needs, 466–468

trust regulation, 462licensed trustee companies,

463–464

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Australia (cont.)managed investment schemes

(MIS), 464state and territory legislation,

462–463Western, Commercial Arbitration

Act 1985, 95wholesale client, 417

Australian Securities and InvestmentsCommission (ASIC), 484

Australian Securities and InvestmentsCommission v. Citigroup GlobalMarkets Australia (No 4),396, 404

Avalon Trust, Re, 355avoidance, law of, 519Ayrshire Pullman Motor Services and

DM Ritchie v. Commissioners ofInland Revenue, 533

B Trust, RBS Coutts (Cayman) Ltdv. W, 215

B Trust, Re, 380Baden case, 21Bahamas

Attorney General role, 507popularity of trust jurisdictions,

467Trust Act 1998, 125

Balmer Radmore, 324, 326Banca Cremi SA v. Alex Brown & Sons

Inc, 388Bank Leumi (UK) plc v. Wachner, 423Bank of America, 561Bank of Credit and Commerce

International SA, 29Bank of England, 29Bankers Trust International plc v. PT

Dharmala Sakti Sejahtera,391, 415

Bankes LJ, 91banking contracts, 11banking secrecy, agreement

preventing, 545bankruptcy, 48banks

clauses restricting liability fordamages, 429

mis-selling of financial products,385, 390

reasonable steps on wife’s risksrelating to husband’sindebtedness, 443

suits against, 11Barclays Bank, 311Barclays Bank plc v. O’Brien, 442–445bare trust, 293, 319Barr’s Settlement Trusts, Re, 196Bartlett v. Barclays Bank Trust Co. Ltd,

318, 517Barton, Re, 154, 156Bathurst CJ, 79Bear Stearns Bank plc v. Forum Global

Equity Ltd, 306Beddoe orders, 5, 221–241

assessment of decision to grant, 240case for beneficiaries, 233–239export to company law, 227–228guidelines for beneficiaries, 239–240In the matter of the X Trust, 231–232litigation costs, 239McDonald v. Horn, 228–230taxonomy of trust litigation, 224–227

Beddoe, Downes v. Cottam, In Re, 222Beddoe, Re, 6, 29Bence Graphics International Ltd

v. Fasson UK Ltd, 301beneficial interest, nature of, 7beneficial trusts, with motive, 499–501beneficiaries, 490, 501

bound by arbittration clause, 107case for Beddoe order, 233–239enforceability of claims, 527entitled to account, 280for trusts, 133guidelines on Beddoe orders for,

239–240interest in discretionary trust,

251–253interests of, 162legal position under Liechtenstein

and English trust law, 525remedial rights after breach of

trust, 7right to obtain information about

trust, 353

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rights, 5, 112rights to information about trustees

deliberations, 31surcharge of account by, 281trustee power over, 313trustee power to add or exclude, 53

beneficiaries dispute, 225beneficiary principle, 133, 152, 486, 508benefit and burden doctrine, 111Benfield Greig Group plc, Re, 186Bermuda

Attorney General role, 507Supreme Court, 44

Beveridge, Lord, Full Employment ina Free Society, 568

binding arbitration, trustee power tosubmit disputes to, 77

Bingham, Lord, 447black hole trust, 149Blenkinsop v. Blenkinsop Nominees Pty

Ltd, 193Borrelli v. Ting, 434, 436Boyd & Forrest v. The Glasgow& South-

Western Railway Co, 427, 445,448, 449

Bradbury v. BBC, 171Braganza v. BP Shipping Ltd, 197Brazil, income inequality, 560breach of confidence, 452breach of contract, cases, and

compensatory principle,297–305

breach of fiduciary duty, 321breach of loyalty, 322breach of obligation, remedies, 296breach of the duty of skill and care,

equitable compensation for, 286breach of trust

action for, 493, 497civil law environment, 522–523equitable compensation for, 296, 305equity response to, 314for claims, 320in Redler, 313liability for, 277liability of trustee, 65, 324primary remedy for, 279remedial rights after, 7

third-party power of consent and, 59trust money expenditures and, 288trustee action as, 77

breach of trust, compensatoryremedies, 307–339

conclusion, 339concurrent liability, 320–324demise of falsification, 308–316equitable compensation principles,

317–320quantifying loss, 324–338

causation, 329–330contributory negligence, 336–338cost of cure, 326–327date of assessment, 328–329mitigation, 335presumption of cheapest means of

performance, 328remoteness, 332–335scope of duty, 324–325

breach-date rule, 329Breakspear v. Ackland, 162, 165Brexit fiasco in UK, 565, 572Bridge, Michael, 306Bristol & West Building Society

v. Mothew, 286, 318British financial system, trust law

advantages for, 459British Oxygen Co. Ltd v. Minister of

Technology, 217British Virgin Islands, popularity of

trust jurisdictions, 467Brooks v. Brooks, 348Brown, Gordon, 547Brownbill, David, 103Browne-Wilkinson, Lord, 70, 277, 291,

292, 305, 317, 322, 442Brudenell-Bruce v. Moore & Cotton, 326Brunei Investment Agency v. Fidelis

Nominees Ltd, 357Brussels II Regulation, 344Buckmaster, Lord, 538Buckton, In Re, 224, 225, 226Buffet, Warren, 531, 556, 571Bunge case, 303Buschau v. Rogers Communications

Inc, 494business judgment rule, 522

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Butlin’s Settlement, In Re, 22Butterworth, Re, 537

C v. C (Ancillary ReliefNuptial Settlement), 349

Cabra Estates, 187, 194Caffrey v. Darby, 325Camerata Property Inc v. Credit Suisse

Securities (Europe) Ltd, 401, 415Cameron, David, 572Canada, Supreme Court, 291, 494Canson case, 319, 323, 334capital, rate of return, and economy

growth rate, 562Cardigan, Lord, 326care, 403

duty of, 401Cartwright, J., 447Cassa di Risparmio della Repubblica di

San Marino SpA v. BarclaysBank Ltd, 401

Catchpole v. Trustees of the AlitaliaAirlines Pension Scheme, 200

causation, 320Cayman Islands, 35

discretionary trusts, 131popularity of trust jurisdictions, 467

CEOs in US, salary increases, 560Chai v. Peng, 342Channel Tunnel Group Ltd

v. Balfour Beatty ConstructionLtd, 93, 108

Chapman v. Chapman, 27Charalambous v. Charalambous, 377charitable trusts, 4, 142–146, 496–498

public official enforcement, 13charities

investment returns, 556law of, 19named as backdrop to family

members in trust, 147solicitation of donations, 32

Charman v. Charman, 52, 53, 340, 346,370–371, 540

charterparty, repudiation of, 302Chelmsfor, Lord, 179Cheslyn v. Dalby, 113

CI Law Trustees and Folio Trust Co. Ltdv. Minwalla (re the FountainTrust), 377

Civil Code (ABGB); AllgemeinesBürgerliches Gesetzbuch, 513

civil law doctrine of donnor et retenir nevaut, 41

civil law environment, trusts, 510–528basics, 510–511beneficiaries access to trust

information, 523–528breach of trust, 522–523corporate structuring, 516–517cultural clash between trusts and

similar legal instruments,511–515

fiducia, 511–513trusts implied by law, 514–515

Hague Trusts Convention relevance,515–516

trustees duties and liability, 520–522wealth management, 517–520with statutory provision on

constructive and/or resultingtrusts, 514

Civil Procedure Act, 120Civil Procedure Act 2005, 116Civil Procedure Rules, Rule 19.9E, 6Claflin v. Claflin, 494claim for avoidance, 519class of objects, membership

changes, 263Clayton v. Clayton, 44, 45, 50Clayton’s Case, 32clear accounts rule, 473client sophistication, 11, See also

sophistication of clientClough v. Bond, 288Clyde, Lord, 533Cohen, Lawrence, 102Coleridge J, 55Collie, In re, 314Collins, Lawrence, 239Collins, Lord, 131

on discretionary trust, 138Comandate Marine Corp. v. Pan

Australia Shipping Pty Ltd, 81

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Commercial Arbitration Act, 85,95, 114

commercial contexts, legal protectionof performance interest, 300

commercial purpose, solicitation ofdonations, 32

commercial trustscompetition and trust law reform,

473–476insolvency, 472–473

Commissioner of Charities and theCharities Council(Singapore), 508

Commissioner of Stamp Dutiesv. Livingston, 249, 251

common lawattempts to merge with equity, 83compatibiliity of remedies in equity

and, 297influence on equitable reasoning, 321public interest and, 93requirements relevant to

compensation, 320rule against perpetuities, 469slippery notion of property, 488sophistication meaning at, 395–400sophistication origins in, 387–393

Common Law Procedure Act 1854,90, 117

common law trust, 166common law world, 19Common Reporting Standard, 15communication, failure of, 66companies, vs. trusts, 203company law, exporting Beddoe orders

to, 227–228compensation

common law requirements relevantto, 320

equitable rules, 320reparative, 317

compensatory principleAIB v. Redler and, 275breach of contract cases and,

297–305moving towards, 305

compensatory remedies for breach oftrust, 324–338



completion, scope of, 313compromises involving trust, court

power to approve, 27Conaglen, Matthew, 30, 204confidentiality

information disclosure in divorce, 354information rights restriction

and, 524of arbitration proceedings, 123of trust accounts, 37survival of rescission of contract, 452trustee’s duty of, 528

conscience of trustees, 69doctrine of notice and, 67relevance as foundation of duties and

liabilities, 70consent

powers of, and powers of veto, 64third-party power of, 58

practical problems, 59–62consideration, agreement supported

by, 435contingent interest, 151contract ab initio

nullified, 429, 432rescinding, 438

contract law, vs. trust law, 9, 74contractarianism, 71, 74, 75contracts

ability to misrepresent, 425arbitration clauses in, 93defective quality of initial

consent, 430discretions under, 193exemption clause, 448for trusts, 100market rule of damages, 299of guarantee and charge,

enforceability, 444

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contracts (cont.)performance of, 278rescission for duress, 435sophistication and, 404vs. trusts, 285

Contracts (Rights of Third Parties) Act1999, 107

contractual claim, or equitableclaim, 333

contractual estoppel“basis clauses” or “exclusion” or

“limitation” claus, 414client sophistication and, 408

contractual relationship, absenceof, 232

contractual rights, in England, 267contractual stipulations, restricting

assignability of contractualright, 268

Convention on the Law Applicable toTrusts and on theirRecognition, 505

co-ownership of land, law of, 19Cornish v. Midland Bank plc, 391Coronation Syndicate Ltd

v. Lilienfeld, 203Corporations Act, 82Corporations Act 2001, 462, 463costs

courts and, 218incurred by trustee, 223

Cottenham LC, 288Council Regulation (EC) No. 2201/

2003, 342court jurisdiction, 72

administrative, 1divorce, and trust assets

redistribution in England andWales, 341–345

on arbitration control, 116ousting, 88–98

Court of Appeals, 95court of King’s Bench, 88courts

approval for proposed plan, 26interventionist approach in trust

administration, 235

jurisdiction over trustadministration, 5

No Fetter rule and, 218power of preliminary determinations

on questions of law, 92role in winding up trust, 32stay of proceedings, 109supervisory jurisdiction, 95, 96trustee application for directions, 60trustee directions or guidance

from, 25vs. arbitral tribunal, 81

Cowan v. Scargill, 175Credit Suisse Research Institute, 552creditor’s claims, reserved powers and,

48–50creditors, protecting assets against

settlor’s, 517Crestsign Ltd v. National Westminster

Bank plc, 410, 413, 420, 421criminal prosecution, for tax fraud, 551Crociani v. Crociani, 235cross-claim against a third party, 120Customs and Excise Commissioners

v. Barclays Bank plc, 393Czarnikow v. Roth, Schmidt & Co, 90,

91, 93, 97Czech Trust law, 514

damagesfor consequential loss, availability

for, 283lack of satisfactory remedy for third

party claims, 206–207D’Angelo, Nuncio, Commercial

Trusts, 207Darling, Alistair, 547Dawson, 87Dawson, Re, 309, 315Day v. Mead, 336, 338declaratory provisions, and reservation

of powers, 35default beneficiary, 138–142, 152, 165

for charitable trust, 143in massive discretionary trusts, 155interest of, 150

defeasible interest, 150

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demand, generating sufficientaggregate, 568–570

Denley’s Trust Deed, Re, 499, 500depression, 529derivative actions, 221–241Derry v. Peek, 431deterrent effect of condition, and

repugnancy, 99Deutsche Bank AG v. Chang Tse

Wen, 409Deutsche Bank AG v. Unitech Global

Ltd, 401, 415, 416developed world economies

growth rates, 556lack of demand, 557optimal top tax rate in, 569

Diplock, Lord, 93direct benefits estoppel, in

U.S. courts, 110direction, third-party power of, 59directors

discretionary powers, 183duties, 185duty to act in interests of

company, 185effects compared to trustees,

203–204discretionary beneficiary, 51

settlor as, 44discretionary dispositive powers,

78, 263discretionary family settlement, interest

of object, 254discretionary powers, 157

of directors, 183discretionary trusts, 4, 6, 37, 534, See

alsomassive discretionary trustsbenefits, 527categories, 244definition, 137–138, 243family trusts as, 365non-transmissible interests for, 269object entitlements as defining

features, 242–276basics, 247–256

prevalence of use, Beddoe ordersand, 236

term use, 275

transmissibility, 263transmissibility of object’s

interest, 263vs. unit trusts, 270

dispositive discretions, 139addition to family trusts, 146

dispositive power, adding to class ofobject, 155

divergence, pattern of, 555divorce

conclusion, 381matrimonial assets award to

wife, 372offshore challenges, 376–381

onshore court orders, 377–378offshore responses, 378–381

offshore court practice, 379–381offshore trustees directions from

local courts, 379parties’ financial needs, 340reserved powers and, 50trust as husband’s financial

resource, 372vulnerability of beneficiaries’

rights, 9divorce and trust vulnerability,

363–382Chancery and family court

practices, 365as financial resource, 368–374pre- or post-nuptial

settlement, 367sham doctrine, 374–375transfer of property order,

375–376divorce, and trust assets redistribution

in England and Wales, 340–362conclusion, 361court jurisdiction, 341–345foreign trusts and challenges,

352–361English court order enforcement,

356–361information access, 353–355trustee submission to English

court jurisdiction, 355Matrimonial Causes Act 1973,

345–352

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divorce, and trust (cont.)assets as financial resources, 346trust as sham, 349–352trusts as nuptial settlements, 348

Dolphin Trust, 131domicile, 519

English court jurisdiction and, 344Domicile andMatrimonial Proceedings

Act 1973 (DMPA), 342donative trust

beneficiaries of, 233litigation incentives, 237

donnor et retenir ne vaut civil lawdoctrine, 41

drafting, reaction in, 71–72Duke of Norfolk’s Case, 469duress

as actionable, 434contract as result, 429rescission for, 430, 435

Durham Tees Valley Airport v. BMIBaby, 328

Duterte, Rodrigo, 572duty of care, 401

economic growth multiplier, 558–559Edelman J, 329Edge v. Pensions Ombudsman, 196education, investment in, 567Eldon, Lord, 21, 72, 453, 486Elliott, S., 433employers

duty to consider relevant factors, 197No Fetter rule and, 192

enforcement of rights, clausespreventing, 100

enforcer, 491, 502incentives, 503private law duty and public law, 497

enforcer principle, 13England

Arbitration Act 1996, proposedamendments, 126

arbitration law, reforms in 1970s, 123Attorney General, 497bank liability for mis-selling financial

products, 390beneficiary legal position, 525

contractual rights, 267courts

client sophistication and, 408matrimonial legislation and, 381

divorcecases, 363trust assets redistribution in,

340–362Law Commission, 470Law Reform Commission, 474

England and Wales Law Commission,on Fiduciary duties ofinvestment intermediaries,174–175

England Court of Chancery, 19, 83, 259English Commercial Court, litigation

in, 29English Court of Appeal, 30, 52, 53,

79, 97on external contract, 184–186

English court order enforcement,356–361

financial resources, judiciousencouragement and, 358

sham trust, 360trust variations and divorce, 358

Enonchong, N., 429, 441entitlements, 270

transmissibility of unit transfers, 273Entrust Pension Ltd v. Prospect Hospice

Ltd, 215–216equality principle, 340equitable arbitration, historical

instances, 85–88equitable claim, or contractual

claim, 333equitable compensation

for breach of the duty of skill andcare, 286

for breach of trust, 296, 305compensation at common law

and, 324compensatory remedies for breach of

trust, 317–320payment of, 279principles, 317–320

equitable estoppel, 110equitable execution, 539

584 index


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Equitable Life Assurance Societyv. Hyman, 196

equitable property, 488equity, 20

compatibiliity of remedies incommon law and, 297

concern of, 323contributory negligence in, 336

Esso Australia Resources Ltdv. Plowman, 79, 123

estate tax, Trump proposal torepeal, 553

Esteem Settlement, In Re, 42, 374estoppel

contractual“basis clauses” or “exclusion” or

“limitation” claus, 414client sophistication and, 408

equitable, 110trustee bound by previous, 200

European Union, UK departure,565, 572

Evans, Jonathan, 196Evershed MR, 113exemption clauses

current orthodoxy assumptions, 427in contracts, 448

exporting Beddoe orders to companylaw, 227–228

express trust, 167external contract, English Court of

Appeal on, 184–186external third parties, trustee dealing

with, 201

facts, false representation, 439falsification, 286

demise of, 308–316family courts, discretion, 363family discretionary settlements, 244family discretionary trust, 50family settlement, set aside, 25family trusts, 574

approach to trusts, 366as discretionary trusts, 365as potentially beneficial to

society, 543dispositive discretions added to, 146

in Australia, 460in nuptial settlement, 341

FATCA information sharingregime, 545

fetter, 5, 169, See also No Fetter ruleargument examples, 177–178defined, 170–172

as search term, 171inside parties, 208–209modern position, 189–190Oceanic Steam Navigation Co.

v. Sutherberry, 179–181Osborne v. Amalgamated Socieety of

Railway Servants, 181outside parties, 201–208overriding implications, 212–214

consent, 213statutory powers allowing advance

exercise, 213trust deed/articles, 212–213

pension scheme trustee policies orguidelines, 214–217

cases on trustees and policies,214–215

pension trustees and policies,215–216

public law and guidelines, 216pensions and, 194–195right time for, 209–211summary, 217trustee changes and, 198–200use of public law cases, 198Weller v. Ker, 178–179

fiducia, 510cultural clash between trusts and,

511–513distinguishing from trust, 513–514

fiduciary, 5, 169limits on, 171

fiduciary capacity, power held in, 69fiduciary discretions, manner of

fulfilling the purpose, 158fiduciary duty

breach of, 321contributory negligence and, 338

Fiduciary Obligations (Finn), 170, 209fiduciary relationship, 510fiducie, 510

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finality, lack of, 63Finance Act 2006, 25Financial Conduct Authority

(FCA), 418Handbook, 419

financial experience, sophisticationand, 396

Financial Ombudsman Service(FOS), 418

financial resources, reserved powersand, 52–55

Financial Services and Market Act2000, 421

Financial Statement Form (FormE), 366

Finn, Paul, Fiduciary Obligations,170, 209

firewall legislation, 356, 357, 379Fitzwood Pty Ltd v. Unique Goal Pty

Ltd, 208fixed trusts, 270, 527

beneficiary identity, 261fixed quality of beneficiary’s interest

under, 257Flame SA v. Glory Wealth Shipping PTE

Ltd, 301FL-OGH. See Liechtenstein legal

system, Supreme CourtFlorida, Probate Code, 126Foo Jee Seng v. Foo Jhee Thuang, 235Foo v. Foo, 235Forbes, Roger, 170, 186foreign trusts

divorce proceedings and, 352–361information access, 353–355

Singapore recognition, 483trustees submission to

jurisdiction, 355formal intention, vs. substantive

intention, 46Foti v. Banque Nationale de Paris, 389Fountain Trust (CI Law Trustees and

Folio Trust Co. Ltdv. Minwalla), 377

Fountain Trust, Re, 360France, 570Francis (saint), 533Franciscan friars, 532

fraudequitable remedy of rescission

and, 431offshore trust involvement, 536

free lunch, tax cuts and, 548freeloading, as natural right of

wealth, 533Friedmann, Daniel, 278Fuld, Richard, 560, 561Fulham Football Club (1987) Ltd

v. Richards, 82, 84Fulham Football Club v. Cabra Estates,

184–186Futter v. HMRC, 534, 542, 574

Galbraith, JK, 547, 548, 558Garrard v. Lord Lauderdale, 43Gartside v. IRC, 248, 249, 251, 253, 257Gates, Bill, 531, 533, 556, 571Gesetz über das internationale

Privatrecht (IPRG), 518Gibbon v. Mitchell, 23Gibson v. Rivers-McCombs, 210Gibson’s Settlement Trusts, Re, 172–173gift tax, Trump proposal to repeal, 553gift, condition attached to, 98Global Financial Crisis.385global wealth tax regime, 571Gloster J, 394Go Dante Yap v. Bank Austria

Creditanstalt AG, 398Goff J, 499Golden Strait Corp. v. Nippon Yusen

Kubishika Kaisha (The GoldenVictory), 301

Gommow, W., 323‘good man’ theory of obligations, 74Goode, R., 453Gordon, J. N., 238government, wealth impact on, 571Grant, Arline, 543Grant, William, 154, 486, 509Grant’s Will Trusts, Re, 500Great Depression, 529Green v. Royal Bank of Scotland, 399Greenspan, Alan, 548Greenwell v. Porter, 210Ground CJ, 44

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Guardian, 536Guernsey, Trusts (Guernsey) Law

2007, 125Gulbenkian’s Settlement, Re, 246, 248Gurlin v. Gurlin, 86Guy, John, 86

habitual residence, 343law of, 519possibility of multiple, 344

Hadley v. Baxendale, 333Hague Convention on the Law

Applicable to Trusts and theirRecognition, 154, 483

Article 2, 38, 506relevance in civil law environment,

515–516Hale, Baroness, 540Hall v. Libertarian Investments

Ltd, 316Halsall v. Brizell, 111Handley, K. R., 453Harman LJ, 534Harris, Jonathan, 506Hart’s Will Trusts, Re, 56Harvey CJ, 98Hayton, David, 488, 489, 505Henry VIII, 537Herschell, Lord, 431High Net Worth Individuals (HNWI)

market, 458high net worth trusts, 529–575

delusion and division in society,529–532

depression and war as prelude, 529early attacks, 537–538

equity’s tenderness forcreditors, 538

modern lines of attack, 539–546bad citizenship exposure,

543–545discovery, 539open-ended list of powers to

encroach on trust, 545relationship property and

financial resources, 540–542unexercised powers of

revocation, 539

wealth preservation by flying in faceof good citizenship, 542–543

tax history support for financialemasculation of private trust,546–563

cuts for rich and free lunch, 548developed world economies, 556developed world economies lack

of demand, 557economic growth multiplier,

558–559growth fantasies, 549high wealth trust treatment as

toxic, 546Oxfam, 559–560Piketty, 555rate of growth size

significance, 556rent seekers, 560–561saving rich from

impoverishment, 551saving rich from tax evasion,

550–551taxpayers and top marginal rate

changes, 546Thatcher and Reagan, 557trickle down, 550wealth accumulation, 555wealth concentration, 562–563wealth from tax cuts, 552–554

trust on dark side, 532–537as means of evading the law,

534–536bright side of trust, 532–534property management, 532

trusted advisers and social unrest,563–568

guidance, 567–568rebellion, 566–567

HIH Casualty and General InsuranceLtd v. Chase Manhattan Bank,427, 445, 447

Hitch v. Stone, 351Ho, Lusina, 234Hodson, Lord, 21Hoffman, Lord, 393Hoffmann LJ, 229Holman J, 358

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Hong Kong2011 survey of trust and estate

practitioners, 466asset management business

expansion, 476Court of Final Appeal, 53courts and matrimonial

legislation, 381declaratory provisions and

reservation of powers, 35divorce cases, 363legislation, 38Legislative Council, 475matrimonial proceedings, 215, 541resistance to NCP trusts, 486rule in perpetuity, 469

Honore, essay on Ownership, 490horse-and-sparrow theory, 548House of Lords

decisions on validity of mere powersand trust powers, 248

O’Brien and Etridge landmarks,442–445

on provision in will, 94HSBC, 535Hughes v. Woolworth Group Pension

Trustee Ltd, 211Hume, David, 567husband, trust as financial resource in

divorce, 372

illusory trusts, 2, 35, 42–47intentions in creating, 43–46repugnancy with trust concept, 46vs. shams, 45

Imperial duty, 197information, beneficiary access in civil

law environment, 523–528information rights

confidentiality and restricting, 524in massively discretionary trusts,

146–153of objects of powers, 148

inside parties, fetter and changes to,208–209

instructioninvalid, from third-party, 67

third-party power of, practicalproblems, 65–67

intention, 261–265rule against restraints on alienation,

266–269transmissible interest, 269–275

interestmeaning in legislation, 251of objects, 254

general law restriction, 258–261transmissibility under

discretionary trust, 263under trust, 260

interest in possession, 7Internal Revenue Service (US), 543internal trust disputes, 3

arbitration and, 76, 88inappropriateness of, 81

International Arbitration Act, 120International Chamber of Commerce,

model arbitration clause, 80international commercial

arbitration, 125international trusts, 515Intesa Sanpaolo SpA v. Regione

Piemonte, 397Investment Company Act 1940 (US), 387Italy, trusts in, 515

Jaffray v. Marshall, 290, 291Jersey

Royal Court. See Royal Court ofJersey

Trusts Law (1984), 352–361Jessel, George, 537John Crowther Group plc v. Carpets

International plc, 186Johnson v. Clarke, 181Jones v. Firkin-Flood, 187–188, 194,

200, 201, 208, 210, 212Jones, William, 110Joss v. Joss, 348JP Morgan Chase Bank v. Springwell

Navigation Corp, 393–395,396, 403

Judge Over Your Shoulders (JOYS),175, 217

588 index


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Judgments (Reciprocal Enforcement)(Jersey) Law 1960, 357

Judicature Act of 1873, 19, 20, 119, 339judicial control, of arbitrations under

statutory provisions, 122judicial pressure, vs. judicial

encouragement, 369judicial review, discretionary nature of

relief on, 196jurisdiction, survival of rescission of

contract, 452Juvenal, 490

KA No. 4 Trustee Ltd and Anorv. Financial MarketsAuthority, 41

Kan Lai Kwan v. Poon Lok To Otto andHSBC International Trustee, 53,370, 371–374, 541

Kennon v. Spry, 372, 541Knight v. Knight, 46

landlaw of co-ownership, 19trust of, 119

Lander and Bagley’s Contract,In Re, 202

Law Commission for England andWales, 126

Law of Property Act 1925, 191Law Reform (Contributory Negligence)

Act 1945, 336Le Poidevin, Nicholas, 102Lectures on Equity (Maitland), 532Leedale (Inspector of Taxes)

v. Lewis, 248legal persons, charities as, 146Lehman Brothers, 401, 561letters of wishes, 167

of settlors, 158Lewis, Kenneth, 560Lewison LJ, 31Lewitt on Trusts, 154, 177, 187, 221liability

for breach of trustees duty ofinvestment, 8

for negligent acts, 522

of wealth manager, for mis-sellingfinancial products, 407

Libertarian Investments v. Hall,279, 287

licensed trustee companies, 463–464licensing

for corporate trustees, 462subsets in AATA, 482

Liechtenstein legal system, 510–528basics, 510–511beneficiaries

access to trust information,523–528

legal position, 525breach of trust, 522–523corporate structuring, 516–517Court of Justice, 520

supervisory authority, 521cultural clash between trusts and

similar legal instruments,511–515

fiducia, 511–513trusts implied by law, 514–515

Hague Trusts Convention relevance,515–516

Right to Follow the Trust Propertyin, 524

Supreme Court, 512trust law, 14trustees duties and liability, 520–522wealth management, 517–520

life-tenant, property decisions of, 36life-threatening illness, 163Lightman J, 29Linden Gardens Trust Ltd v. Lenesta

Sludge Disposals Ltd, 267Lindley LJ, 119Lipinski’s Will Trusts, Re, 501liquidators, 29litigation

beneficiaries and, 222costs, 223

for trustees, 6funding for, 232risk with massive discretionary

trusts, 161taxonomy for trust, 224–227

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London and County Banking Co.v. Goddard, 55

Londonderry, Re, 162Londonderry’s Settlement, Re, 353, 534long-stop beneficiary, 150, 152,

156–161Lord Vestey’s Executors v. Inland

Revenue Commissioners, 56loyalty

breach of, 322trustee’s duty, 521

Macdougall v. Gardiner, 203Macquarie Capital Advisers Ltd

v. BrisConnections ManagementCo. Ltd, 194

Maitland, Lectures on Equity, 532Mallaby, Sebastian, The Man Who

KnewThe Life and Times of Alan

Greenspan, 548Mallone v. BPB Industries plc, 211Malta

Arbitration Act, 125trust law, 124

Mana Trust, 131Managed Investment Schemes (MISs),

464, 470–472in Australia, 461

Mance, Lord, 393Manisty’s Settlement, Re, 135Maple Leaf Macro Volatility Master

Fund v. Jacques Rouvroy, 423Mareva injunction, 49Mark v. Mark, 344Markandan & Uddin, 337market changes, risk of, 298market rule, 278, 305Martin v. City of Edinburgh, 175Mason, Anthony, 150massive discretionary trusts, 130–168

accountability, 161–165charitable and non-charitable trusts,

142–146family version, 161legal risks, 165misleading appearances, 156–161rights to information, 146–153

risks related to, 154Saunders v. Vautier and, 153–156settlor as residuary beneficiary, 156terminology, 131–142

beneficiary, 134–136default beneficiary, 138–142discretionary trusts, 137–138residuary beneficiary, 138–142trusts, 131–133

trustee exercise of, 164master of the rolls, 87Matrimonial Causes Act 1973, 340,

345–352, 540assets as financial resources, 346trust as sham, 349–352trusts as nuptial settlements, 348

Matthews, Paul, 490, 493, 505Maxwell v. Commissioner of Inland

Revenue, 550McCall, Christopher, 103McDonald v. Horn, 228–230, 231McFarlane v. McFarlane, 340, 540McLachlin J, 305, 319, 323, 334McNeil v. Fulz, 291McPhail v. Doulton, 137, 248Meagher, Gummow and Lehane, 317Megarry & Wade, 495Megarry V-C, 172Melville and others v. Commission of

Inland Revenue, 54Mettoy Pension Trustees Ltd

v. Evans, 194Mexican drug cartels, money

laundering for, 536middle class, 531Midland Bank plc v. Wyatt, 351Miller v. Miller, 340Millet, Lord, 310, 499, 535, 574Mills, Re, 191Minwalla v. Minwalla, 41, 377Misrepresentation Act 1967, 413, 426,

434, 445misrepresentation and rescission

affirmation and correcting defectiveconsent, 438–442

current orthodoxy, 427–428assumptions under, 445–457

exceptional treatment, 445

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House of Lords, O’Brien and Etridgelandmarks, 442–445

legal consequences, 425–427remedy for pre-contractual

misrepresentation, 426thesis and bootstraps, 428–429vitiating factors, defective consent,

429–437misrepresentee, quality of consent, 439MISs. See Managed Investment

Schemes (MISs)mis-selling of financial products

customer sophistication, liabilityand, 392

wealth manager liability, 407mistakes, legally relevant, 24mitigation, 320Mompesson v. Ley, 85Monaghan, Angela, on wealth

distribution, 552money laundering, for Mexican drug

cartels, 536Moore v. Clench, 205Moore-Bick, LJ, 446Morice v. Bishop of Durham, 21, 154,

234, 249, 486motivation, wealth and, 561Moulton, Fletcher, 182Mubarak v. Mubarik, 358, 379–381Mulligan, Re, 317Multilateral Competent Authority

Agreement on AutomaticExchange of Financial AccountInformation, 545

Mummery LJ, 322Munby J, 55, 350Munby, James, 366Myddleton v. Lord Kenyon, 453

Nationwide Building Society v. BalmerRadmore, 338

Needham v. Beamond, 109negligent acts, liability for, 522Nestlé v. National Westminster

Bank, 287Neuberger, Lord, 307New South Wales

arbitration system, 117

Court of Appeals, 82, 128on power to send proceedings to

arbitration, 121New York, direct benefits estoppel

in, 111New Zealand, 570

Arbitration Act 1908, 118Court of Appeal, 41, 336, 551Family Court, 44High Court, 550Law Commission, 118

trust law review, 127Supreme Court, 44, 45, 50

Nicholls, Lord, 442Nicola v. Ideal Image Development

Corp. Inc, 82No Fetter rule

as combination of duties, 172as presumption, 193–194courts reluctance to impose, 189public law as guide, 195–198scope, 191–193

discretions under contracts, 193employers, 192

statements, 172–177Australian case law, 176Gibson’s Settlement Trusts, Re,

172–173Judge Over Your Shoulders

(JOYS), 175Law Commission on Fiduciary

duties of investmentintermediaries, 174–175

New Zealand LawCommission, 176

Swales v. IRC, 173trustee action contrary to, 204

Nocton v. Lord Ashburton, 322Nolan, Richard, 204, 234non-charitable purpose trusts (NCP

trusts), 486–509beneficial trusts with motive,

499–501charitable trusts, 496–498conclusion, 508demand for, 503non-recognition, 507private international law, 505–508

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non-charitable (cont.)property/obligation debate, 486Quistclose trusts, 499Saunders v. Vautier insignificance,

494–496tax avoidance/evasion, 504trusts of imperfect obligations, 498uses, 501–504viability, 486

non-charitable trust, 12, 142–146rule against, 167

non-disclosure, rescission for, 449non-fiduciaries, 192non-fiduciary powers, settlors’ risks

from reserving, 56Norberg v. Wynrib, 336Normand, Lord, 94North Shore Ventures Ltd v. Anstead

Holdings Inc, 49notice, doctrine of, 66Nottingham, Lord, 469nuptial settlements, 347

Oberster Gerichtshof Liechtenstein, 512objects

entitlements, 255and discretionary powers of

trustees, 255interest, 254

general law restriction, 258–261negative definitions of

entitlements, 248of discretionary trusts, plural

entitlements, 250transmissible interest, 246

objects of powers, 152property rights and, 135rights to information, 148standing to complain, 135

Oceanic Steam Navigation Co.v. Sutherberry, 179–181

office-holders, circularity of dutiesbetween, 506

offshore jurisdictions, 486offshore structures, risks of adopting, 4offshore tax haven, 29offshore trusts, 34, 542, 574

involvement in fraud and evasion, 536

O’Grady v. Wilmot, 538Oliver J, 501onshore courts, massive discretionary

trusts in, 130order of general administration, 115organizational law, trust law as, 237Orient Centre Investments v. Société

Generale, 409Osborne v. Amalgamated Socieety of

Railway Servants, 181O’Sullivan, D., 433outside parties, binding contracts, 201Overseas Development Institute, 559Overseas Union Insurance Ltd v. AA

Mutual International InsuranceCo, 454

Oxfam, 553, 554, 559–560Oxus Gold plc v. Oxus Resources

Corporation, 306

Pacific Alliance, 546Palmer v. Dean of Canterbury, 85Pan Atlantic Insurance Co. Ltd v. Pine

Top Insurance Co. Ltd, 427, 449,450, 455

partner’s share, 255Pattni v. Ali, 357payment of equitable

compensation, 279Pearson v. IRC, 7, 151, 248Peekay Intermark Ltd v. Australia and

New Zealand Banking GroupLtd, 392, 405, 427, 446

Penner, J. E., 498, 501pension fund, relationship between

parties in, 230pension trust, exception in favour of

beneficiaries, 228–230pensions

fetters and, 194–195law of, 19

Peregrine Mineral Sands Pty Ltdv. Wentworth Shire Council, 198

performance interest of beneficiary, 275liability to account, 278–286Target and AIB, 292–297valuing where account is falsified,

286–292

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performance of contract, 278Permanent Trustee Co v. Dougall, 98perpetuities

lengthening period, 236rule against, 469–470

Perpetuities and Accumulations Act2009, 28

personal income taxproposal, 571rate in UK, 546

Personen- und Gesellschaftsrecht, 512Persons and Companies Act

(PGR), 512Petingall order, 498Philippines, 572Piketty, Thomas, 569

Capital in the Twenty-FirstCentury, 555

Pilmer v. Duke Group Ltd, 336Pitt v. HMRC, 534, 542Pitt v. Holt, 23–24, 175, 196, 574

effect, 209Plender, John, 459policies, trustees setting of, 214poll tax, 564Pollock, Gordon, 29Poole, Joanna, 102Potter, Mark, 347poverty, 532, 559–560power of sale of trustees, 177powers

exercise fetters future use, 201limitation, 193trustee tested against terms of, 208vs. property, Privy Council on, 48

pre-contractual misrepresentation, asactionable, 434

prenuptial agreements, 382Prest v. Petrodel Resources Ltd, 350, 375Principal Family Member, settlor as, 44Prinsep v. Prinsep, 348Private International law (IPRG), 518private international law, NCP trusts

and, 505–508private law of trusts, 261–265private person, 421

attempts to bring companies withinconcept, 420

private purpose trust, 483obstacle to development, 486

private trusts, as threat to King, 537Privy Council, 85, 539

as court of equity, 87Judicial Committee, 131on balancing exercise, 114on powers vs. property, 48policy of the law, 90

progressive tax, 569property

common law and, 488denial of transmissibility, 261life-tenant decisions about, 36vs. powers, Privy Council on, 48

Property (Relationships) Act 1976, 51Property Alliance Group Ltd

v. The Royal Bank of Scotlandplc, 411

property order, transfer of, 375–376property rights, recognition of, 495Proudman J, 25prudent man rule, breach of, 238public interest, common law and, 93public office holder, conferring the

right on, 508public policy

discretionary relief and, 542exception for rule against

restraint, 267Public Trustee v. Cooper, 26purpose trusts, charitable trust

as, 143

quantifying loss, compensatoryremedies for breach of trust,324–338



Queensland Law Reform Commission(QLRC), 463

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Queensland Local GovernmentSuperannuation Boardv. Superannuation ComplaintsTribunal, 212

Quistclose trusts, 293, 499

Rabaiotti’s 1989 Settlement, Re, 377Rachal v. Reitz, 113Racketeer Influences and Corrupt

Organizations Act 1970, 82Rackham v. Peek Foods Ltd, 186Radmacher v. Granatino, 382Raiffeisen Zentral Bank v. Royal Bank of

Scotland plc, 406, 410Reagan, Ronald, 529, 547, 562reasonableness, statutory test of, 413rebellion, 566–567Rechtssicherungsordnung, 518rectification, order of, 22Red Cross trust, 140, 142

as sham, 160Redgrave v. Hurd, 431, 439Reed, Lord, 296, 326referee, report from, 119registration of AATA trusts,

considering, 480Reich, Robert, 560, 568Reid, Lord, 94relationship property, reserved powers

and, 50–52release of powers, by deed or

contract, 191remedial rights of beneficiaries, 7remoteness, 320rent seekers, 560–561reparative compensation, 317repugnancy, 98–100

and deterrent effect of condition, 99rescission. See also misrepresentation

and rescissionfor non-disclosure, 449termination of contract or, 432

reserved powers, 2and declaratory provisions, 35as property or financial resources,

47–55creditor’s claims, 48–50divorce, 50

financial resources, 52–55relationship property, 50–52

conclusion, 55–56courts’ analysis, 38integrity of trust and, 39–47

illusory trusts, 42–47shams, 39–42

settlors wish for, 36–39trust invalidation and, 34

reserved powers trusts, 34residuary beneficiary, 138–142, 152residuary legatee, 252residue of estate, 138Responsible Entity of MIS, 464restitutio in integrum, 448restitution, 317restraints on alienation, rule against,

259, 266–269revocation, 49

separate power of debtor, 43unexercised powers of, 539

revolution, wealth-leveling powerof, 563

right holder, 490, 508Right to Follow the Trust Property, in

Liechtenstein, 524right/duty relationship, 493rights

assignability of, 261clauses preventing enforcement, 100

Rinehart v. Welker, 82, 95, 96, 102,114, 128

risks, fiduciary duty requiringdisclosure, 412

Ritz Hotel Casino Ltd v. Daher, 398Rochefoucauld v. Boustead, 119Rome Convention, 454Roussel-Uclaf v. GD Searle & Co.

Ltd, 108Royal Bank of Scotland plc v. Etridge,

442–445Royal Court of Jersey, 41, 380

Beddoe orders in, 241Royscot Trust, 426Rubenstein v. HSBC Bank plc, 399rule in Hastings-Bass, 209Rules of Supreme Court, Order 62, 229Russell on Arbitration, 101

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Russell v. Northern Bank DevelopmentCorp, 192, 194

Russia, embargo, 303Ruxley Electronics and Construction Ltd

v. Forsyth, 326

Sale of Goods Act, 278, 299Samuel, Geoffrey, 226Saunders v. Vautier, 4, 74, 113, 147, 165,

380, 525and massively discretionary trusts,

153–156equitable rules, 470–472insignificance for NCP trusts,

494–496Schmidt v. Rosewood Trust Ltd (Isle of

Man), 4, 21, 31, 89, 148, 162,222, 231, 234, 235, 245, 354

scope of duty, 324–325Scott and Ascher, 534SEC v. Ralston Purina Co, 388Second Charter of Justice of 1826, 19secrecy, 166Securities Act 1933 (US), 387Securities Exchange Act 1934,

suitability claims under, 388self-contradiction, 45Senior Courts Act 1981, 108, 118separability, doctrine of, 455September 11th attack, 564settlement, court power to rectify, 22settlors

as sole trustee, 44characteristics to define class of

objects, 263control in Asia, 467letters of wishes of, 158overriding wishes, 494retention of control, 35risks from reserving non-fiduciary

powers, 56substantive intention vs. formal

intention, 46wish for reserved powers, 36–39wishes of, 166

Shalson v. Russo, 42shams, 2, 39–42, 159

foreign trusts and, 360–361

reducing risk of, 37trusts as, 30

in divorce, 348, 374–375vs. illusory trusts, 45

shareholders, contract for re-capitalising company, 182

shares, vs. other types of property, 290sharing principle, 340Shaw, Lord, 448Shelton v. King, 494Shernebrooke v. Shernebrooke, 85, 109Sigma, Re, 32Simonds, Viscount, 27Singapore, 19

2011 survey of trust and estatepractitioners, 466

Academy of Law, 474accredited investor, 417Attorney General in, 497Business Trusts Act, 238Charities Act, 508Civil Law Act, 19Court of Appeal, 235courts, client sophistication

and, 408declaratory provisions and

reservation of powers, 35Economic Review Committee, 474International Commercial Court

(SICC), 123legislation, 38Monetary Authority, 474resistance to NCP trusts, 486rule in perpetuity, 469Sovereign Wealth Fund, 570trust law competition with Australia,

474–475Trustees Act, 474wealth management centre, 475

Sitkoff, R. H., 237Slayter v. Hoyle, 300Smith New Court Securities Ltd

v. Citibank NA, 320, 335Smith v. Land and House Property

Corporation, 439Smith, Adam, 568Snook v. London & West Riding

Investment Limited, 349, 374

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Snook v. West Riding InvestmentsLtd, 39

social justice, 531, 558social legislation, purpose of, 51social unrest, 563–568Society of Trust and Estate

Practitioners ofHong Kong, 475

Socimer International Bank Ltdv. Standard Bank LondonLtd, 197

sole trustee, settlor as, 44solicitors’ duties, 9sophisticated investors, in United

States, definition, 417sophistication clause, 11, 414sophistication of client, 11, 385–424

approach to investors with, 400–407approach to unsophisticated

investors, 407–417common law and, 421conclusion, 423contractual estoppel and, 408definition, 420meaning at common law, 395–400modern approach in common law,

393–417sophistication origins in common

law, 387–393statutory and regulatory approach,

417–423timing of determination, 422

Soros, George, 531, 571South Australia, rule against

perpetuities, abolition, 469spending power, restoring to ordinary

people, 531Springwell Navigation Corporation v. JP

Morgan Chase Bank, 405Spurfolgerecht, 515Standard Chartered Bank v. Ceylon

Petroleum Corporation, 415State of New South Wales

v. Commonwealth ofAustralia, 479

State Trustee Acts, in Australia, 463status quo ante breach, right to be

restored to, 298

statute law, discretionary trust termin, 242

Statutory Instrument governingExecutions (RSO), 518

stay of proceedings, 109, 114Steel, David, 413Stena v. MNRPF, 188Steward, Nicholas, 291Steyn LJ, 450–452Stiglitz, Professor, 567Stockman, David, 548Street v. Rigby, 89substantive intention, vs. formal

intention, 46suitability claims, under Securities

Exchange Act 1934, 388Summers, Lawrence, 535, 553Sunday Times Rich List, 553super-rich group, 530supply-side economics, 548Supreme Court of Judicature Act 1873,

108, 117Supreme Court of New Zealand, 44surcharge cases, 317surcharge deal, 286Swales v. IRC, 173, 187Swil, Jonathan, 170, 186Swindle v. Harrison, 322Switzerland, 484, 545

trusts in, 515

Taberna Europe CDO II plc v. SelskabetAF1 (formerly Roskilde Bank A/S), 407

Target Holdings Ltd v. Redferns, 7, 194,195, 277, 283, 292–297, 310, 317

criticism, 294Tasarruf Mevduati Sigorta Fonu

(‘TMSF’) v. Merrill Lynch Bankand Trust Co. (Cayman) Ltd, 48,131, 134, 139, 539

tax avoidance/evasion, NCP trustsand, 504

tax cuts, Thatcher and Reaganassertions on, 529

tax evasion, 536modern history, 539–546saving rich from, 550–551

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tax fraud, criminal prosecution for, 551taxation statutes, 147Taylor, Re, 119termination of contract, or

rescission, 432testamentary trust, 520Texas, 110

Supreme Court, 113Thanakharn Kasikhorn Thai Chamkat

(Mahachon) v. Akai HoldingsLtd, 307

Thatcher, Margaret, 529, 547, 548,562, 564

Thatcher-Reagan era, legacy ascurse, 568

The Wagon Mound, 333theft, trustee duty to insure against, 282‘theory of intimation’

(Andeutungstheorie), 525third parties

cross-claim against, 120damage claims, 203

lack of satisfactory remedy, 206–207personal power, 61trustee and, 57–75, 204trustee contract with, 76

third party dispute, 225third-party powers, 3

construction of, 68, 69–70practical problems, 59–68types, 58–59

Thomas on Powers, 196, 212Thomas v. Thomas, 346, 369Thorby v. Goldberg, 182–184Thornbridge Ltd v. Barclays Bank

plc, 411Thrasyvoulou v. Secretary of State for

the Environment, 198‘through or under’ provisions, 106time

for director’s decision, 183for fetter, 209–211for trustee to exercise discretion,

178–179Titan Steel Wheels v. Royal Bank of

Scotland, 406, 413Toomey v. Eagle Star Insurance Co. Ltd

(No. 2), 427, 445, 448

tort law, 333tort of negligence, damages on basis

of, 426tortfeasors, liability for economic

loss, 285Toulson, Lord, 296, 304, 314, 315, 339trace in equity, right to, 489Trade Practices Act 1974, 82Trafalgar Square, 564transfer of property order, 375–376Transfield Shipping Inc. v. Mercator

Shipping Inc. (The Achilleas), 333transmissibility

lack of, object entitlements and, 256of entitlements, 273of object’s interest, under

discretionary trust, 263trust assets interests, 256–258

transmissible interest, 269–275of objects, 246

transparency, trust creating cloakagainst, 149

Transvaal, Supreme Court, 203Treasury Solicitor, Judge Over Your

Shoulders (JOYS), 175treuhand, 510

legislative framework, 513trickle down policy, 530, 548, 568

high net worth trusts and, 550Trump, Donald

Presidential election campaign(2016), 565, 572

tax reform proposals, 553trust accounts, confidentiality of, 37trust administration

court jurisdiction over, 5role of courts in, 20

trust assetsinterests, transmissibility and,

256–258redistribution in divorce in England

and Wales, 340–362trustee change and, 189

Trust Companies Act, 474trust disputes, arbitrability of, 80–100trust drafting practices, 130trust for sale, with power of

postponement, 235

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trust law, 8Australia, 13economic effect of reform, 460influence of, 19Liechtenstein, 14modernisation, 459vs. contract law, 9, 74

Trust Law (Amendment) Bill of2013, 475

Trust Law Committee, 103, 126‘Rights of Creditors Against Trustees

and Trust Funds’, 207trust money, unauthorised

application, 292trust professionals, 532trust property, right to follow, 514–515trust, implied duty of, 197Trustee Act 1925, 206, 325, 337Trustee Act 2000, 206, 282trustees, 2

accountability, 162and secrecy, 164

and third parties, 57–75application to court for directions, 60basic duty, 63consideration of restriction

effect, 188contract claims against, 202–208

Coronation Syndicate Ltdv. Lilienfeld, 203

directors and trustees effects,203–204

third party damage claims, 203contractual limitations, 187court assistance, 73decision-making process, 166defense against liability claims for

breach of trust, 523directions or guidance from court, 25duties, 9

New Zealand Law Commission ondefault, 177

fetter and changes to, 198–200first obligation, 281indemnity in favour, 206liability

for breach of duty of investment, 8for breach of trust, 324

in contract of former, 199litigation costs for, 6obligations, 157, 310power of sale of, 177power over beneficiary, 313power to add or exclude

beneficiaries, 53power to appoint and remove, 37pre-emptive cost order in favor of, 222restrictions on powers, 37scrutiny of rationality of

decisions, 163trusts. See also high net worth trusts

administration, 19–33arbitration clause in unilateral

declaration, 103court role in winding up, 32definition, 20, 131–133integrity, and reserves powers, 39–47litigation categories, 29opaque structure, 29, 30original function, 575performance analysis, 555power of amendment, 211private law of, 261–265restoring ‘in specie’, 281status quo consideration, 14terms of, 68to pay debts, dispute over, 85traditional vs. commercial, 461vs. contracts, 285vulnerability in divorce, 363–382

Trusts (Amendment) (ImmediateEffect and Reserved Powers)Law in 1998, 35

Trusts (Guernsey) Law 2007, 125Trusts (Hague Convention) Act

1991, 483Trusts (Jersey) Law 1984, 378Tucker, Lord, 94Turkey, banking regulator, 48Turkington, In re, 501Twinsectra v. Yardley, 293, 295, 499

uncertainty, 71, 154UNCITRAL Model Law on

International CommercialArbitration, 101

598 index


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unconscionable action, 65Underhill & Hayton, 132, 154, 155undue influence, 434

signing contract under, 436Unfair Contract Terms Act 1977

(UCTA 1977), 413uniform model laws (Model Laws),

478–479Uniform Trust Code 2000, 478unit holders, voting rights of, 272unit trusts, 270–275

drafting for unit transfers, 273United Kingdom

Brexit fiasco, 565, 572legislation on ante- or post- nuptial

settlements, 540Matrimonial Causes Act 1973, 52personal income tax rate in

WWII, 546Supreme Court, 307tax rules, 57

United Shoe Machinery Co. of Canadav. Brunet, 453

United Statesdirect benefits estoppel in courts, 110importation of private purpose

trusts, 126income tax rates, 547, 569Internal Revenue Service, 543Investment Company Act 1940, 387model laws for trust law reform, 478Presidential election campaign

(2016), 565Securities Act 1933, 387sophisticated investors,

definition, 417Supreme Court, 82, 388

Universal Declaration of HumanRights, 566

unlawful actions, by trustee, 60untaxed wealth, accumulation, 536

‘valuation’ claim, 297Variation of Trusts Act 1958, 28, 74variation order, 367Verity & Spindler v. Lloyds Bank

plc, 391Vermeulen, Philip, 552

Vesta v. Butcher, 336Vestey’s Settlement, Re, 182, 214veto, third-party power of, 59, 69

practical problems, 62–64Victorian age, position on rigid no

fetter doctrine, 189Vine v. Ranelagh, 244Vinelott J, 500violence, wealth-leveling power of, 563voluntary arbitrations, 116voting rights, of unit holders, 272

wages and salaries, incomes dependenton, 556

WalesAttorney General, 497trust assets redistribution in divorce,

340–362Walker, Lord of Gestingthorpe, 21, 23,

148, 242on massively discretionary

trusts, 149Walker, Robert, 25, 26, 31Wallersteiner order, 6Wallersteiner v. Moir, 229war, 529war clause, in charterparty, 302warranties on sale, 187Waters, Donovan, 501wealth

accountability of untaxed, 536client sophistication and, 398destruction, 531distribution from tax cuts, 552freeloading as natural right, 533impact on government, 571

wealth accumulation, 14speed of, 555

wealth concentration, 562wealth distribution, consequences for

long-term dynamics, 563wealth management, 10

and Asian high net worthindividuals, 14

exporter of Australian services, 459in civil law environment, 517–520

wealth management centre, inSingapore, 475

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wealth management contracts, 404wealth manager, liability of, for mis-

selling financial products, 407wealth manager-client relationship, 403Wednesbury duty, 197Wednesbury test, 197Weller v. Ker, 178–179, 205, 211Wellington Capital Ltd v. ASIC, 195Wertheim v. Chicoutimi Pulp

Company, 299Westdeutsche Landesbank Girozentrale

v. Islington LBC, 65Western Australia, Commercial

Arbitration Act 1985, 95Westminster, 7th Duke of,

inheritance, 533WesTrac Pty Ltd v. Eastcoast OTR Tyres

Pty Ltd, 120Weth and Muggleton v. Attorney

General, 239Whaley v. Whaley, 53White v. White, 340, 371wife, matrimonial assets award, 372Wilberforce, Lord, 249, 251, 499Willesford v. Watson, 84Williams v. Central Bank of Nigeria, 308

Willoughby, Peter, 575Wills Trust Deeds, Re, 191, 199Wilson LJ, 540Wilson v. MF Global UK Ltd, 423Wingecarribee Shire Council v. Lehman

Brothers Australia Ltd, 397, 412,415, 418

Winnetka Trading Corp v. Julius BaerInternational Ltd, 401

Wood, John, 103Woods v. Martins Bank Ltd, 390Work Choices Case, 479World War II, 529WT Ramsay Ltd v. IRC, 542Wyand, Roger, 337Wynn, Re, 93

X Trust, In the matter of, 231–232, 236

Yonge v. Yeo, 86Youyang Pty Ltd v. Minter Ellison

Morris Fletcher, 295, 319, 329

Zaki v. Credit Suisse (UK) Ltd, 398Zakrzewski, R., 433Zuckerberg, Mark, 533

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Documents

576 - Cambridge University Press