National Westminster Bank PLC & Ors v Ludlow Trust Company Limited & Ors
[2023] EWHC 2532 (Ch)
Coutts & Co & Anor v Ludlow Trust Company Limited
17 October 2023
[2023] EWHC 2545 (Ch)
High Court
A bank (Coutts) wanted to quit managing a trust fund for a child. Another company (Ludlow) was chosen to take over. Because the trust rules said the court's permission was needed, the judge approved the change and also kept the child's identity secret.
Key Facts
- •Coutts & Co seeks to be substituted as trustee of the TABC Trust by Ludlow Trust Company Limited.
- •The TABC Trust holds personal injury damages for a minor beneficiary, TABC.
- •Coutts is divesting itself of its trust administration business.
- •Ludlow was selected as a suitable alternative trustee through a detailed process.
- •The trust instrument requires court consent for trustee changes while the beneficiary is a minor.
- •TEFG, the co-trustee and beneficiary's father, supports the change.
Legal Principles
The court may appoint a new trustee if it is expedient and doing so without court assistance is inexpedient, difficult, or impracticable.
Section 41(1) of the Trustee Act 1925
Court approval is needed for trustee changes in a trust where the beneficiary is a minor, if the trust document requires such approval.
TABC Trust documentation
Outcomes
The court substituted Ludlow Trust Company Limited for Coutts & Co as trustee of the TABC Trust.
It was expedient to appoint Ludlow, who is a suitable and willing trustee, and it was inexpedient, difficult, and impracticable to do so without court intervention due to the trust instrument's requirements. The co-trustee supported the change, and there was no significant financial disadvantage.
A final anonymity order was made to protect the minor beneficiary, TABC.
Protecting the minor beneficiary's interests is paramount.
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