In Perpetual Trustee Company Limited v Shambrook [2024] QSC 105, the applicant, Perpetual Trustee Company Limited, sought declarations from the Supreme Court of Queensland. This case revolves around the management of a judgment sum initially held by Perpetual Trustees Queensland Limited (PTQ) for Tyson Desmond Burns, represented by Amanda Shambrook as his litigation guardian. Tyson Burns, who suffers from cerebral palsy due to medical negligence at birth, had a trust fund established from a damages claim, which was managed by PTQ.
Due to legislative changes in 2013, Perpetual Trustee Company Limited (PTCo) argued that it had become the successor trustee of Tyson's assets. The court agreed with PTCo's position that the legislative reforms effectively transferred the trustee responsibilities from PTQ to PTCo. The court examined several issues, including whether PTQ was justified in paying trust money into superannuation, especially when the superannuation entity shared a parent company with PTQ/PTCo, and whether such investments constituted a conflict of interest. It was determined that PTQ's actions were in Tyson's best interests due to significant tax advantages and other financial benefits.
The court concluded that PTCo was justified in maintaining the investments with its subsidiary, given the financial prudence and benefits accrued to Tyson over time. Additionally, PTCo sought to appoint a financial administrator for Tyson to manage his superannuation funds, emphasizing the need for an entity with the authority to actively manage his interests. The court endorsed the appointment of an administrator through QCAT, stating this was in Tyson's best interests.
Finally, the court proposed that PTCo settle and bring forth a form of order to reflect these decisions, ensuring ongoing prudent management of Tyson's financial affairs.