© 2026 Zoe. All rights reserved.
Zoe is a legal information platform. Always consult the Federal Register of Legislation for authoritative text.
[2004] VSC 241
Supreme Court of Victoria
2004-07-02
HARPER J
Original judgment source is linked above.
[2004] VSC 241
TRUSTS - Deceased estate - Application for judgment on basis defence unsustainable - Rule 23.01, Supreme Court Rules - Whether a deed of trust allegedly executed by the testator was effective to create a trust - Declaration in deed of future commencement date - Whether intention to create a trust in the future or a present creation of a trust with a postponement of enjoyment of benefits - Absence of evidence of any step by testator to affirm the gift at the date of commencement or otherwise - Effect of subsequent inconsistent Will - Whether testator beneficially owned property at the time of his death - In re Northcliffe [1925] 1 Ch 651 and Kavanaugh v Estate of Dubrowolski (1980) 407 NE 2d 856 applied.
"23.01 Stay or judgment in proceeding (2) Where the defence to any claim in a proceeding - (a) does not disclose an answer; or (b) is scandalous, frivolous or vexatious - the court may give judgment in the proceeding generally or in relation to any claim."
"C. The trustee has this day been appointed trustee of the P & G R Harpur Trust and he is aware that he will subsequently be replaced by Kai Tak Pty Ltd. He knows that the directors of Kai Tak Pty Ltd are Paul Henry and Pamela Fay Rand Harpur. He is aware that the P & G R Harpur Trust is a discretionary trust and that Pamela Fay Rand Harpur is the appointor. Guy Edward Peter Rand Harpur is the specified beneficiary but he is aware that the discretionary nature of the trust allows for the trustees [sic] to exercise discretions in relation to a variety of matters including vesting date, distribution of income and distribution of the trust fund as between the general beneficiaries. He has read the P & G R Harpur Trust Deed. D. The trustee agrees to pay all costs of this Deed and any transfers required under the Transfer of Land Act 1958 to transfer the property referred to in Schedule A including any stamp duty and Titles Office lodging fees within 7 days of an assessment issuing. NOW THIS DEED WITNESSES: 1. The trustee is the owner of the property and assets specified in Schedule A and he now irrevocably declares that as from the commencement day he holds the property and assets specified in Schedule A for the beneficiary specified opposite each of those specified properties and assets. 2. Where a property is subject to a mortgage as specified in Schedule A the trustee from the commencement day holds the property subject to the mortgage for the beneficiary specified opposite the property in Schedule A. 3. From the commencement day the trustee will, at the request of a beneficiary specified in Schedule A, transfer the property specified in Schedule A opposite the name of the beneficiary to the beneficiary and will execute all documents including transfers of land and all things necessary for that purpose. 4. From the commencement day the trustee, without limiting the generality of anything contained in his power of attorney dated 3 June 1997, hereby authorises his attorney Paul Henry Harpur to do all things necessary including the execution of transfers of the property and assets specified in Schedule A to vest such property and assets or any item or part thereof in the beneficiary specified opposite such property in Schedule A. 5. The commencement date of this deed shall be the 1st October 1997. 6. This deed and any disputes arising hereunder shall be governed and determined in accordance with the laws in force in the State of Victoria."
"If an owner of property declares his intention to create a trust of the property in the future, or promises that he will create such a trust, whether by transferring the property to another as trustee or by constituting himself trustee, no trust is presently created. Although a manifestation of intention to create a trust is all that is needed for its creation, it must be a manifestation of intention to create a present trust and not merely to create a trust to arise at some future time. A promise to dispose of the beneficial interest in property at some time in the future is not a present disposition of the beneficial interest. This is true where the intending settlor owns the property at the time he makes the promise; it is true also where he has not yet acquired the property of which he intends to create a trust.[7] ... A promise to create a trust in the future is to be distinguished from the present creation of a trust with a postponement of enjoyment by the beneficiaries. A trust can be created although the settlor is to receive the income for life or for some other period, and the beneficiaries other than the settlor himself are not to receive income or principal until the expiration of the period. Thus where the owner of property transfers it in trust to pay the income to himself for life and on his death to convey the property to or to hold it for designated beneficiaries, a trust is created at the time of the transfer. So also, where the owner of property declares himself trustee in trust to pay himself the income during his life, and on his death the property is to be distributed among designated beneficiaries or held in trust for them, a trust is created at the time of the declaration of trust. In either case it is immaterial that no one but the settlor himself has an interest presently enjoyable and that the interests of the other beneficiaries are postponed in enjoyment. The interests are created at the time of the transfer or declaration of trust.[8] ... Where a person promises, not that he will transfer property in trust, but that he will himself be trustee of property at some time in the future, a trust does not automatically arise when that time arrives. It will arrive at that time, however, if the settlor then manifests an intention to be trustee. His subsequent conduct, taken in connection with his prior promise, may amount to a present declaration of trust."[9]
"...that if he the settlor shall at any time or from time to time during his life acquire...an estate of inheritance in fee simple in possession any other freehold [land] in...Kent...he...will forthwith...assure the same ...upon the like trusts...as are hereinbefore expressed...and...until such assurances shall have been actually made he...shall and will stand seised of all and any such after acquired [land] upon such trusts ...as... aforesaid."
"... the beneficiaries under the settlement are to enjoy all the benefits contemplated by the settlement, including the benefit of the covenant and declaration contained therein. I read that as a declaration by the testator that he holds the Kent freeholds upon the trusts of the settlement ... I am satisfied that when the testator executed his Will he recognised, and stated as a fact, that he held the Kent freeholds upon the trust of the settlement. The position is the same with regard to other properties, for in each case the testator, by a codicil executed after he had acquired the properties, confirmed and republished his Will. Accordingly I declare that the executors should and may assure to the present trustees of the settlement the four freehold properties in Kent mentioned in the evidence."[15]
"The only obligation imposed upon [Mr Dobrowolski when the land was sold] was his gratuitous declaration almost two years earlier that if that eventuality should occur, he would create a trust for Kavanaugh. Therefore...the [trust] was not an enforceable trust at the time of [Mr Dobowolski's] death."[18]
[1] This presumably means 27 August 1997, but may mean 1 October that year - that being the "commencement date of this deed".
[2] Williams "Civil Procedure - Victoria" p.3416 at para. I 23.01.15
[3] Defendants ' Outline of Argument on Plaintiffs' Application Pursuant to Order [sic] 23.01(2) p_.2_ para.2.
[4] Corin v Patton [1990] HCA 12; (1990) 169 CLR 540 at 559 per Mason CJ and McHugh J.
[5] Defendants' Outline of Argument op. cit., p_._ 8 at para. 10.
[10] Defendants' Outline ofArgument op. cit p. 9 at para.16.
[16] (1980) 407 N.E. 2nd 856.
[18] Ibid at 862 (emphasis as in the original)
Levy
Harpur [2004] VSC 241
(1990) 169 CLR 540