Re Cai Jinhong: Court Sanctions Sale of Trust Properties for Minors' Benefit
In Re Cai Jinhong, the General Division of the High Court of Singapore, presided over by Justice Choo Han Teck on November 22, 2024, addressed two originating applications by Cai Jinhong, a trustee seeking the court's sanction to sell two properties held in trust for his minor children. The court allowed the applications, finding it expedient under s 56(1) of the Trustees Act 1967 to permit the sale, ensuring the proceeds benefit the children's future despite the absence of an explicit power of sale in the trust deeds.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Applications allowed.
1.3 Case Type
Trust
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court sanctions the sale of trust properties held for two minor children due to the trustee's financial concerns, ensuring their future benefit.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Cai Jinhong | Applicant | Individual | Applications allowed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge of the High Court | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Yeo Siew Chye Troy | C K Tan Law Corporation |
4. Facts
- The applicant is holding two properties on trust for his daughter and son.
- The trust deeds declared that the applicant had purchased two properties at Chin Swee Road under his sole name for the benefit of his daughter and son respectively.
- The applicant's savings are dwindling, and he fears not being able to continue paying the outstanding sums for the properties.
- The applicant's employment is subject to market forces, with the possibility of job loss.
- The applicant's parents require monetary support from him.
- There is an outstanding mortgage over the applicant’s family home at Serangoon Avenue 3.
- The trust deeds do not vest a trust for sale or a power of sale of property in the trustee.
5. Formal Citations
- Re Cai Jinhong, , [2024] SGHC 295
- In the matter of s 13(1) of the Trustees Act 1967, Originating Applications Nos 1100 and 1101 of 2024, [2024] SGHC 295
6. Timeline
| Date | Event |
|---|---|
| Applicant signed two deeds of declaration of trust | |
| Judgment reserved | |
| Judgment reserved | |
| Judgment issued |
7. Legal Issues
- Expediency of Sale of Trust Property
- Outcome: The court found that selling the properties was expedient for the benefit of the trust, considering the trustee's financial situation and the potential impact on the trust assets.
- Category: Substantive
- Related Cases:
- [2020] 1 SLR 950
- Statutory Jurisdiction of Court
- Outcome: The court determined that the application should have been brought under s 56(1) of the Trustees Act 1967, rather than s 13(1), as the trust deeds did not grant the trustee the power of sale.
- Category: Jurisdictional
8. Remedies Sought
- Sanction to sell two properties held on trust
9. Cause of Actions
- No cause of actions
10. Practice Areas
- Trust Administration
- Estate Planning
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Ernest Ferdinand Perez De La Sala v Compañía De Navegación Palomar, SA and others | High Court | Yes | [2020] 1 SLR 950 | Singapore | Cited for the requirements under s 56 of the Trustees Act 1967, specifically regarding the element of expediency in trust administration. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Trustees Act 1967 | Singapore |
| Trustees Act 1967 s 13(1) | Singapore |
| Trustees Act 1967 s 56(1) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Trust
- Trustee
- Trust Deeds
- Power of Sale
- Expediency
- Beneficiaries
- Trustees Act 1967
- Originating Application
15.2 Keywords
- Trust
- Trustee
- Sale of Property
- Minor
- Beneficiary
- Singapore
- Court Sanction
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Trusts and Estates | 95 |
| Property Law | 60 |
| Family Law | 10 |
16. Subjects
- Trusts
- Property Law