Schmidt v Rosewood Trust Ltd [2003] UKPC 26 is a trusts law case, concerning the duty of trustees.

Facts

Mr Schimdt wanted disclosure of accounts and information from a trust set up, managed by Rosewood Trust Ltd, by his father, who had died without a will. He had a discretionary interest under the settlement, demonstrated by a letter of wishes from the father to the trustees.

Rosewood Trusts Ltd contended that Schmidt was not entitled to information because he was not a true beneficiary, and the father had not even been a settlor since he was "a mere object of a power who as such had no entitlement to trust documents or information". They said the right to information depends on having a proprietary interest in the trust.

Advice

The Privy Council

Privy council

A privy council is a body that advises the head of state of a nation, typically, but not always, in the context of a monarchic government. The word "privy" means "private" or "secret"; thus, a privy council was originally a committee of the monarch's closest advisors to give confidential advice on...

 advised that fixed and discretionary beneficiaries, as well as objects of a power of appointment had the right to compel trustees to provide information about the trust. However there is no absolute right vested in any particular beneficiary to receive information, especially when the object has ‘no more than a theoretical possibility of benefit’.

Lord Walker made the following clear.