Ballenden v Bryant (No 2)

The case of Ballenden v Bryant (No 2) involved a dispute over the handling of a trust following the death of a trustee. The deceased trustee, who had been managing a trust, passed away, leaving behind a beneficiary who was absolutely entitled to the trust property. The court was tasked with determining the powers of the deceased trustee's executor in relation to the trust property and whether the office of the trustee devolved upon the executor. The central issue was whether the executor had the authority to transfer the trust property to the beneficiary who was already absolutely entitled.

The court examined the nature of the office of a trustee and whether it survived the death of the trustee. It concluded that generally, the office of a trustee does not survive the trustee's death and does not devolve upon the executor. However, the court recognised an exception for inactive trusts where the trust property has already vested in the beneficiary. In such cases, the executor of the deceased trustee has the power to transfer the trust property to the beneficiary who is absolutely entitled. The court found that the trust in question had become inactive as the property had vested in the beneficiary prior to the trustee's death, thus allowing the executor to transfer the property.

In light of the above, the court ruled that the executor of the deceased trustee was entitled to transfer the trust property to the beneficiary who was already absolutely entitled. The court emphasised that this exception applied specifically to inactive trusts where the vesting of the property in the beneficiary had occurred before the trustee's death. The court's decision provided clarity on the powers of an executor in relation to inactive trusts and the transfer of trust property in such circumstances. The final orders of the court confirmed that the executor could proceed with the transfer of the trust property to the beneficiary who was absolutely entitled.