Event and Time
Event Description
- Nature of the Case: Application to vary provisions of the Gengoult-Smith Family Trust established in 1974.
- Date of Trust Establishment: 29 April 1974.
- Vesting Date Originally Scheduled: 29 April 2024.
- Proposed Vesting Date: 29 April 2054.
- Annual Net Income: Approximately $700,000.
- Total Trust Assets: Approximately $80 million.
Application and Claims
- Plaintiffs: Hugh and Edward Gengoult-Smith (beneficiaries of the Trust).
- Defendants:
- Petela Nominees Pty Ltd (Trustee), - Attorney-General for the State of Victoria (representing charitable beneficiaries), - Jillian and Alexandra Gengoult-Smith (beneficiaries and directors of the Trustee).
- Claims:
- Hugh and Edward seek the Court’s approval under Section 63A of the Trustee Act 1958 to vary the Trust Deed to postpone the vesting date and adjust provisions regarding the Trust’s income distribution to avoid significant capital gains tax liability of up to $10 million.
- Consent: All beneficiaries, except for the minors, consent to the application.
Judicial Decisions
- The Court approved the proposed arrangements presented by the plaintiffs, with the following key orders:
- Vesting Date Revised: Changed from 29 April 2024 to 29 April 2054. - Clause Modifications: - Clause 3 modified to extend the number of years from fifty to eighty. - New clause 3A added concerning the perpetuity period.