Littin v Heald - [2024] NZHC 1288

IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY

I TE KŌTI MATUA O AOTEAROA ŌTAUTAHI ROHE

CIV-2021-409-000584

[2024] NZHC 1288

UNDER the Trusts Act 2019

IN THE MATTER

of the COLIN AND JENNY HEALD FAMILY TRUST

BETWEEN

SARAH LOUISE LITTIN

Plaintiff

AND

RICHARD JAMES MACKAY HEALD

Defendant

On the papers

Counsel:

N Burley for Plaintiff

E J Loughnan for Defendant
B R D Burke for other parties (grandchildren minors)
P C Eastgate for interested parties Max Heald and Sam Taylor

Judgment:

22 May 2024

JUDGMENT OF PRESTON J

This judgment was delivered by me on 22 May 2024 at pursuant to r 11.5 of the High Court Rules.

Registrar/Deputy Registrar
Date……………

LITTIN v HEALD [2024] NZHC 1288 [22 May 2024]

Introduction

[1] The parties seek blessing orders by consent approving the terms of a deed of settlement dated 3 October 2023, which effects a final distribution of a family trust and estate assets including by provision for each of the settlor’s grandchildren.

[2] The settlement brought an end to litigation commenced by the plaintiff in which she sought the final distribution of the trust, albeit initially to her and her two siblings.

[3] The application is brought as the wording of the trust deed, the parties accept, could be clearer and a final distribution seemed momentous.

The Colin and Jenny Heald Family Trust

[4] The late Colin and Jenny Heald had three children: the plaintiff Sarah Louise Littin (Sarah), the defendant Richard James Mackay Heald (Richard) and their brother, Andrew Colin Heald (Andrew).

[5] On 1 April 1999, Colin Heald settled the Colin and Jenny Heald Family Trust (the Trust) on himself, his wife Jenny and Neville Moffitt, an accountant (the Trustees). Under the Trust deed (the Deed) the settlor wished to make provision for the future maintenance, education, advancement and benefit of his children and created the Trust for that purpose (Recital A).

[6] The beneficiaries comprise any or all of the settlor’s children and their children and issue born during the trust period. The trust period is the period until the vesting day. The vesting day is defined as the expiry of the period of 80 years from the date of execution of the Deed (31 March 2079) or such earlier date as the trustees in their absolute discretion appoint by deed in respect of either of the whole or any specified part of the trust fund or the date of distribution in cl 2.8.

[7]Clause 2.2 provides for payments out of trusts in the discretion of the trustees:

2.2Payments out of trusts: The Trustees may as they think fit pay out of the income or the capital of the Trust Fund any of the following:

(a)the expenses of administering the Trust Fund.

(b)the costs of acquiring further assets of the Trust Fund.

(c)any debts or liabilities of the Trust Fund.

(d)the premiums on any policy or policies of life insurance forming part of the Trust Fund.

(e)any other payments authorised by this deed notwithstanding in…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Littin v Heald

Details

AGLC: Littin v Heald [2024] NZHC 1288
Case: [2024] NZHC 1288
Decision Date: 22 May 2024

CaseChat Overview and Summary

The High Court of New Zealand, Christchurch Registry, was asked to consider a dispute involving the final distribution of assets from the Colin and Jenny Heald Family Trust. Sarah Louise Littin, one of the trustees, sought to distribute the remaining assets of the trust to the beneficiaries, which included her siblings and grandchildren. The trust was established to benefit Colin and Jenny Heald's children and their descendants. The key legal issues were whether the trustees had the power to distribute capital to beneficiaries during the trust period, and whether the court could bless the proposed settlement under the Trusts Act 2019. The court found that the trustees did have the power to distribute capital and that the proposed settlement, which provided for the distribution of the trust fund to the beneficiaries, was a momentous decision that required the court's blessing. The court also considered the interests of the minor grandchildren and the unborn child of one of the beneficiaries, concluding that the proposed distribution was in their best interests and in line with the settlor's intentions. The court approved the settlement, allowing for the final distribution of the trust assets.

Final orders were made in terms of the parties' draft orders by consent, effectively terminating the trust and distributing the remaining assets among the beneficiaries.

Orders