A proper headache: trust drafting and the proper purpose rule after Grand View v Wong

The decision of the Board of the Privy Council in Grand View v Wong has given much greater prominence to the proper purpose rule in the context of the exercise by trustees of their powers. This article argues that, while the apparent desire of the Board to control abuse of trust arrangements is understandable, the judgment risks undermining trustee decision-making and encouraging litigation and unnecessary court applications.

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If you require further information about anything covered in this article, please contact Tom McPhail or your usual contact at the firm on +44 (0)20 3375 7000.

This publication is a general summary of the law as at the date of publication. It should not replace legal advice tailored to your specific circumstances.

This article was originally published by Trusts & Trustees (Vol. 29, No. 4, 2023).

© Farrer & Co LLP, February 2023