Dagmar Girardet Family Trust

The applicants, Raymond Goubitz and Candida Trustee Company Limited, trustees of the Dagmar Girardet Family Trust, applied to the High Court of New Zealand seeking orders that would enable a variation to the trust deed to take effect and allow them to sign a restated trust deed reflecting modern drafting practices. The Trust, established by Dagmar Anja Lily Girardet, holds significant assets including shares in several companies and will vest on the death of the last surviving family member. The applicants sought to extend the life of the Trust to 125 years, modernise the trust deed, and protect against increased risk of relationship property claims from spouses on separation.

The court was required to decide whether the variation was in the best interests of future beneficiaries, if the requirement for consent from certain beneficiaries could be waived, and if the trustees could sign a new restated trust deed. The court found that the variation aligned with the settlor's intentions, improved the Trust for future generations, and provided greater protection against claims. The trustees' power to add or remove discretionary beneficiaries, while potentially detrimental to future spouses, was deemed necessary for unforeseen family developments. The court also found that waiving the consent requirement from the settlor's adult grandchildren and associated trusts was appropriate, as the variation did not alter their beneficial entitlements and the settlor preferred they remain unaware of the Trust's extent until they were older. The court confirmed that the applicants could sign a new restated trust deed incorporating the variation and use it as their operating document.

The court approved the deed of variation on behalf of future beneficiaries, waived the requirement for consent from certain beneficiaries, and directed that the applicants could sign a new restated trust deed. The court also ordered that the applicants' costs in respect of the application be paid from the Trust. The court's decision aligns with the settlor's intentions and ensures the Trust's assets are preserved for future generations.