Bermuda Trust v Richard Wee: Trust Administration Fees and Interest on Delayed Distribution
In Bermuda Trust (Singapore) Ltd v Richard Wee, the High Court of Singapore addressed a dispute arising from the administration of a trust. Anthony Wee Soon Kim, a beneficiary, challenged the trustee's administrative fees and sought interest on the delayed distribution of trust funds. The court ordered the trustees to pay the balance of the capital and income to Mr. Wee's solicitors upon conclusion of the taxation of a bill, and also ordered the trustees to pay interest on the delayed payments at a rate of one-half of one percent per annum.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Orders made for payment of balance of capital and income, and interest on delayed payments.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Bermuda Trust (Singapore) Ltd v Richard Wee concerns a dispute over trust administration fees and interest on delayed distribution of trust funds.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Anthony Wee Soon Kim | Defendant | Individual | |||
| Bermuda Trust (Singapore) Ltd | Plaintiff | Corporation | Partial | Partial | |
| Richard Wee | Defendant | Individual | Partial | Partial | |
| Wee Soon Siew, Raymond | Defendant | Individual | |||
| Estate of Ronald Wee Soon Whatt | Defendant | Trust | |||
| Hongkong & Shanghai Bank (Singapore) Trustee Ltd | Defendant | Corporation |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Judith Prakash | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Suhaimi Lazim | Shook Lin & Bok |
| TPB Menon | Wee Swee Teow & Co |
4. Facts
- Bermuda Trust (Singapore) Ltd were the trustees of a Sinchew trust set up by the will of Wee Kay Siang.
- Anthony Wee Soon Kim is a grandson of Wee Kay Siang and a beneficiary of the trust.
- The court previously held that the Sinchew trust had failed.
- The court ordered the trust assets to be held for Anthony Wee Soon Kim.
- Mr. Wee challenged the Trustees' administrative fees and sought interest on delayed distribution.
- The Trustees valued a property within the trust at $3 million based on a 1997 valuation.
- The Trustees delayed distribution of the trust funds to Mr. Wee.
5. Formal Citations
- Bermuda Trust (Singapore) Ltd v Richard Wee and Others, OS 949/1997, SIC 602463/2001, [2002] SGHC 22
6. Timeline
| Date | Event |
|---|---|
| Property valuation report issued by Chesterton International Property Consultants Pte Ltd. | |
| Trustees' remuneration revised to allow current fees. | |
| Mr. Wee disputes Trustees' administrative fee calculation. | |
| Court held that the Sinchew trust had failed. | |
| Court ordered Sinchew House and capital to be held in trust for Anthony Wee Soon Kim. | |
| Court ordered Trustees to pay capital and income to Mr. Wee after deduction of remuneration. | |
| Trustees' solicitors enquired about handover of assets. | |
| Trustees' solicitors asked for instructions on asset transfer. | |
| Trustees informed that Mr. Wee's solicitors had no instructions to accept payment. | |
| Trustees released $400,000 to Mr. Wee. | |
| Mr. Wee took out a summons in chambers asking for various reliefs. | |
| Judgment issued. |
7. Legal Issues
- Trustees' Fees
- Outcome: The court held that the Trustees were entitled to value the property at $3 million for the purpose of calculating their fees.
- Category: Substantive
- Sub-Issues:
- Valuation of trust assets
- Calculation of administrative fees
- Interest on Delayed Distribution
- Outcome: The court ordered the Trustees to pay interest at a rate of one-half of one percent per annum on the amounts that should have been paid earlier.
- Category: Substantive
- Sub-Issues:
- Trustees' duty to distribute funds promptly
- Reasonable delay in distribution
8. Remedies Sought
- Declaration regarding Trustees' fees
- Payment of interest on trust funds
- Order for distribution of trust funds
9. Cause of Actions
- Breach of Trust
10. Practice Areas
- Trust Administration
- Litigation
11. Industries
- Finance
- Legal Services
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Bermuda Trust (Singapore) Ltd v Richard Wee and Others | High Court | Yes | [2002] SGHC 22 | Singapore | This is the current judgment. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Sinchew trust
- Trustees' fees
- Delayed distribution
- Open market value
- Gross value of assets
- Interest on trust funds
15.2 Keywords
- Trust
- Trustees
- Fees
- Interest
- Distribution
- Singapore
- High Court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Trust Law | 90 |
| Estate Administration | 70 |
| Costs | 50 |
16. Subjects
- Trusts
- Trustees
- Fiduciary Duties
- Trust Administration