o There must be a genuine dispute under category 4 Perpetual Trustee v Godsall

O there must be a genuine dispute under category 4

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oThere must be a genuine dispute under category 4. Perpetual Trustee v Godsall [1979] 2 NSWLR 785 CB 33.10 Notes 2Rule:So long as the prime purpose of varying the beneficial instruments under the trust was in the area of management of administration of a trust, you can go to s81 of the Trustee Act 1925 (NSW). Facts:-Testator left his house to widow for life. Costs of maintenance were too great - so she and the trustee agreed that it would be desirable to sell the house and buy a smaller one with the proceeds of sale. -Trustee applied to the court on the basis of the Trustee Act 1925 (NSW), s81to do this.-Daughter, one of the remaindermen, argued that s81 was concerned with lack of power in the trustee which handicaps an administration or management, inability of trustee to destroy specific devise and replace it with a fund is not a lack of power in administration…
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oAlso argued that widow’s failure to keep house in good repair made it inequitable forproperty to be sold to the detriment of the remaindermen. (Condition of the life estate). Court:-A court will have no power to alter existing interests of the beneficiary, as this is outside the meaning of management or administration. Her interest in being able to reside in a house in the trust was not being altered. -Rath J noted that daughter was wrong. Section focused on “expediency in management or administration of any property vested in the trustees.”-The breach of the condition of the widow in regard to the condition was upheld, but this does not prevent court making order under s81.-Hypothetical: Changing the widow’s interest to an annuity here would be changing the interest, and not acceptable under s81.81 Advantageous dealings(1) Where in the management or administration of any property vested in trustees, any sale, lease, mortgage, surrender, release, or disposition, or any purchase, investment, acquisition, expenditure, or transaction, is in the opinion of the Court expedient, but the same cannot be effected by reason ofthe absence of any power for that purpose vested in the trustees by the instrument, if any, creating the trust, or by law, the Court:(a) may by order confer upon the trustees, either generally or in any particular instance, the necessary power for the purpose, on such terms, and subject to such provisions and conditions, including adjustment of the respective rights of the beneficiaries, as the Court may think fit, and(b) may direct in what manner any money authorised to be expended, and the costs of any transaction, are to be paid or borne as between capital and income.To keep accounts and give information: Re Londonderry’s Settlement [1965] Ch 918, CB33.13C; (Leading Case on Trust Documents)Rule:Trust documents are the property in equity of beneficiaries, and the beneficiaries have the right of inspection – but trustees are not obliged to reveal reasons. The beneficiaries, while entitled to see all other trust documents which record the trustee’s dealings with the trust property, are not
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