In the Estate of Constantinou

In the Estate of Constantinou, the Federal Court was asked to determine the jurisdiction and governing law for trusts established by the deceased's will, which included assets located in Papua New Guinea, Australia, and Cyprus. The deceased had created trusts for five of his children under the age of 25. The central legal issue was whether the will established one trust for all beneficiaries or five separate trusts. The court also had to decide the law governing the trusts, considering an implied choice of law under Article 6 of the Hague Convention on trusts and the application of Article 7 factors.

The court first assessed the jurisdiction to hear the application and found it appropriate to do so. It then considered the choice of law for the trusts, examining the implications of Article 6 of the Hague Convention and the factors set out in Article 7. The court concluded that the will intended to create one trust for all beneficiaries under the age of 25, as opposed to five separate trusts. Furthermore, the court ruled that the words “minor beneficiary” in the will referred to those under the age of 25. The court also determined that the executor had the power to invest in real property and to appoint new trustees under section 9 of the Trustees and Executors Act 1961 (PNG).

Following the court's determinations, various directions were given pursuant to section 96 of the Trusts Act 1973 (Qld), providing clarity on the administration and governance of the trusts. The executor was instructed on the proper management and investment of the trust assets in line with the court's findings.