Re Hay's Settlement Trusts

Facts

Trustees held a power to appoint to anyone in the world except a small excluded class.

Issue

Was such a wide intermediate power valid?

Held

Yes. Megarry V-C held that the width of a power does not make it invalid. Trustees must consider the range of objects and the appropriateness of appointments.

Principle

A wide power is valid, but a power may be void if capricious.

Why it matters

It explains the duties of trustees who hold powers, and the capriciousness limit.

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