Deeds of appointment which were defectively executed because they were not signed by all the trustees required to do so could be remedied under the doctrine of equity.
A married couple (AT and JT) decided to settle company shares on their three children (the claimants). In April 1997, JT each made three discretionary settlements (AT did the same). Each of JT’s settlements made one of the children a prime beneficiary.
Early in 1999, the family was advised that it would be advantageous for tax purposes to give the children an interest in possession under the settlement of which he or she was the prime beneficiary. The effect would be that the prime beneficiary would personally pay tax on income generated by the trust fund as opposed to tax being paid by the fund.
Deeds of appointment were prepared and signed in March 1999. Unfortunately, each deed was drafted identifying only three of the four
