The High Court dismissed proceedings brought by Joan Donnelly over a discretionary trust established by her late mother’s will, finding no grounds to set the will aside or remove the trustees. The court made no order as to costs.
The judgment, delivered by Mr Justice Hedigan on 27 November 2013, said the trust property consisted entirely of a house known as “The Cabin” at 14A Convent Road, Dalkey, County Dublin. The will appointed Joan Donnelly’s brothers, Richard and Anthony Donnelly, as executors and trustees, and provided for her to benefit from the trust during her lifetime. The house is to pass to the defendants’ children after her death, subject to the trust terms.
Joan Donnelly had narrowed her claims to winding down the trust, costs and the return of money she said had been misappropriated. Her submissions also criticised the defendants over probate, discretionary trust tax, repairs, sale of the house and their positions as trustees. The judgment said probate had been granted and the trustees were seeking an exemption from discretionary trust tax. The tax issue remained ongoing as of 22 November 2013.
The court said the house was in bad repair, but neither side wanted it sold. It directed that the house should be inspected and, if possible, repaired. As the trust had no income and Joan Donnelly had no income herself, repair costs were to be recorded and ultimately recovered from the trust property for the trustees’ benefit after her death.
If repairs could not be carried out, the house should be sold and the proceeds invested to preserve the trust capital while generating whatever income was possible for Joan Donnelly during her lifetime. Any trust tax paid was also to be recorded and treated as a charge on the fund, recoverable for the trustees’ benefit upon the eventual sale.
The judgment did not determine the dispute over money removed from a joint account. It said that issue was being dealt with in the District Court; the defence stated the money had been used for funeral expenses. The High Court’s order was to dismiss the proceedings, with no order as to costs.