Proper management of a trust: lessons from Owies
Published Date: 13 May 2024
This article considers one of the trustee’s key obligations that must be managed each year, which is the effective exercise of its discretion in determining which beneficiaries of the trust are entitled to the income of the trust. This topic has been of considerable interest since the decision of Owies v JJE Nominees Pty Ltd, where the Victorian Court of Appeal held that the trustee had failed to give real and genuine consideration to the beneficiaries under the trust when considering the income entitlements at year end. The article examines the decision, with a focus on the content of the “real and genuine consideration” obligation and how, in practice, the trustee may effectively discharge the exercise of its discretion to distribute income of the trust at year end. The article highlights some of the difficulties that a trustee faces in discharging this obligation in a typical family trust scenario.
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- Published By: Norman Hanna
- Published On:13 May 2024
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