Jurisdiction(s):
United Kingdom

Marcus v Marcus: contextual construction of 'children' in discretionary trust extends to stepchild [2024] EWHC 2086 (Ch)

Published on: 26 September 2024

Published by a LexisNexis Private Client expert

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Article summary

Marcus v Marcus [2024] EWHC 2086 (Ch)

What are the practical implications of this case?

Master Marsh provided a helpful distillation of the rules governing the construction of trusts. He found that, absent clear wording to the contrary, ‘children’ typically excludes stepchildren. Nevertheless, he considered the broader familial setting and assessed how a reasonable reader, armed with the settlor’s knowledge, would interpret the language. The decision underscores the sorts of issues now emerging within contemporary family arrangements and the resulting complexities for private client practitioners. He noted the instrument followed a conventional approach, identifying ‘children’ as a class rather than naming beneficiaries. Even so, it is a prompt to draft with accuracy and care when preparing trusts or other legal documents, and in particular to address the status of non‑biological relatives.

What was the background?

The settlor, Stuart Marcus, was a prosperous entrepreneur who established a family toy company. In 2003, he settled a discretionary trust for his ‘children and remoter issue’, which held shares in the family business valued at about £14.5m...

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