BR Law Corporation
br@brlawcorp.com +65 6899 9888
  • Our Team
  • Practice Areas
  • News and Insights
  • Join Us
  • Contact Us
br@brlawcorp.com +65 6899 9888

Contested Probate Over Clause In A Will

 
08 February 2019
Foo Soon Yien
Picture
Picture
The rule in Saunders v Vautier permits a beneficiary to terminate a trust if the beneficiary is of adult age, of sound mind and compels the trustees to transfer the legal estate to the beneficiary, thereby terminating the trust. This may be problematic as a testator may wish for the beneficiary’s share in his estate to be held on trust until a beneficiary attains an age, beyond majority. If the will is inadequately drafted, it may fail to achieve the testator’s true intention. 
A was a beneficiary while B and C were appointed as executors and trustees of a will. According to the terms of the will, A was entitled to a monthly instalment of monies under the will. Due to personal reasons, A wanted to end the trust to obtain the remaining benefit of her inheritance in full and had written to B and C conveying her wish on the same. B and C refused as they wish to honour the testator’s wish and as a result, parties took the matter to court for adjudication.  
 
In Trusts, Trustees and Equitable Remedies Texts and Materials, citing the rule in Saunders v Vautier (1841) Ch 82 (“Saunders”), it states that:
 
“If there is only one beneficiary under a trust who is sui juris...[she] can bring the trust to an end irrespective of the wishes of the trustees or of the creator of the trust.”
 
The High Court in Re Symphonia Co Ltd & others [2013] SGHC 261 accepted this position and stated that:
 
“It is trite that the beneficiaries of the trust, if together entitled to the whole beneficial interest, can if sui juris put an end to the trust and direct the trustees to hand over the trust property as they direct.”
 
Similarly, the High Court in Cheong Soh Chin and others v Eng Chiet Shoong and others [2015] SGHC 173 upheld this proposition and held that:
 
“Under the rule in Saunders v Vautier (1841) Ch 82, persons who are together entitled to the entire beneficial interest in trust property and who are of adult age and under no disability have a right to require the trustee to transfer the legal estate in that trust property to them and thereby terminate the trust. The defendants are therefore obliged unconditionally to transfer all the shares...to the plaintiffs or as the plaintiffs direct.”.
 
However, it was stated in Saunders v Vautier [1841] EWHC Ch J82 that:
 
“... it was immaterial whether the occasion of it was an immediate gift of the produce of the funds to the legatee, or a gift of a fund to a trustee to improve for his benefit. In either case, it was the separation of the fund that destroyed the contingent nature of the bequest, and raised a presumption that an immediate and absolute gift was intended, unless that presumption were rebutted by a gift over in the event of the legatee dying under the prescribed age. That principle was recognised and it would be found to be the principle of all those cases in which a gift of this kind had been held to confer a vested interest.”
 
Essentially, the court in Saunders held that where a will provides that monies are to be held on trust until the beneficiary attains a certain age, and that the monies are to be paid to another beneficiary in the event the first beneficiary meets his demise prior to reaching the requisite age, the first beneficiary will not be able to terminate the trust by applying the rule in Saunders as there is a ‘gift over’ and the subsequent beneficiary’s interest will have to be considered.
 
If a testator does not wish for the trust to be terminated by his or her beneficiaries prior to them attaining a certain age, the testator should include a ‘gift over’ provision so as to prevent the beneficiaries from extinguishing the trust by utilising the rule in Saunders.


Foo Soon Yien
Senior Director, BR Law Corporation
foosoonyien@brlawcorp.com

Post date. Edit this to change the date post was posted. Does not show up on published site. 8/2/2019


Your comment will be posted after it is approved.


Leave a Reply.

    We're Here To Help

    Our team welcome any comments or questions and will gladly assist you with your enquiry. You can call us on +65 6899 9888 or fill out our simple contact form. 

    Disclaimer

    The materials in these articles have been prepared for general informational purposes only and are not legal advice or a substitute for legal counsel. If you require legal advice for your particular circumstances, please consult a suitably qualified legal counsel. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. You should not rely or act upon this information without seeking professional counsel. Whilst we endeavour to ensure that the information in these articles is correct, no warranty, express or implied, is given as to its accuracy and we do not accept any liability for error or omission. The authors of the articles are or were employees of BR Law Corporation at the time of  publication, but may no longer be, now or in the future, in the employ of the firm.

    Subscribe to our Newsletter

    Subscribe to our quarterly newsetter to keep up to date with a wealth of insights from the BR Law, BR Family Assets and BR Corporate services team.
    Subscribe to Newsletter

    RSS Feed

    Categories

    All
    Awards And Accolades
    Commercial Transactions
    Conveyancing
    Corporate Law
    COVID19
    Criminal Law
    Dispute Resolution
    Family And Matrimonial Law
    Intellectual Property
    International Law
    Personal Data Protection
    Probate And Administration
    Technology
    Wills And Trusts

    Archives

    November 2022
    June 2022
    May 2022
    April 2022
    March 2022
    November 2021
    October 2021
    September 2021
    July 2021
    May 2021
    April 2021
    October 2020
    September 2020
    July 2020
    May 2020
    April 2020
    January 2020
    October 2019
    June 2019
    March 2019
    February 2019
    January 2019
    December 2018
    August 2018
    July 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    September 2017
    August 2017
    January 2017
    September 2016
    March 2015
    January 2015
    July 2014
    June 2014
    May 2014
    April 2014

Firm Brochure

Download

Practice Areas

Subscribe to our quarterly newsetter to keep up to date with a wealth of insights from the BR Law.
Subscribe to Newsletter

Contact Us

br@brlawcorp.com
 
Main Branch - Republic Plaza
9 Raffles Place
#08-03 Republic Plaza
Singapore 048619
+65 6388 1717 Telephone
+65 6394 7398 Fax

Branch Office - Bank of China
4 Battery Road #29-00
Bank of China
Singapore 049908
+65 6899 9888 Telephone
+65 6338 5377 Fax

Branch Office - United Square
101 Thomson Road
#26-02/04 United Square
Singapore 307591
+65 6336 1717 Telephone
+65 6394 7318 Fax

Awards and Accolades

Picture
Terms of Use​  •  Privacy Statement
​© Copyright 2018 BR Law Corporation. Registered in Singapore (UEN: 200312051N).