In Marcus v Marcus [2024] EWHC 2086 (Ch), the High Court found that a settlor’s non-biological child was their child for the purposes of being a trust beneficiary.
Stuart Marcus, husband of Patricia Marcus, settled the SN Marcus Settlement in November 2003. The beneficiaries of the Trust included “the children and remoter issue of the Settlor”.
- Edward Marcus (born 1978) and Jonathan Marcus (born 1981) were brought up by Stuart and Patricia as brothers.
- In March 2010, Patricia told Edward that his true father was not Stuart, but a partner in a law firm in Norwich.
- Stuart died in 2020. He never knew that Patricia believed that he was not Edward’s father.
- Edward’s birth certificate described Stuart as Edward’s father.
- After discovering, in May 2023, that Edward may not be his full brother, Jonathan brought a claim to have Edward removed as a beneficiary of the SN Marcus Settlement because a stepchild was not included in the meaning of 'children'.
- DNA evidence concluded that it was 25 times more likely that Jonathan and Edward were related as half-siblings than related as full siblings.
The High Court found that:
- Stuart was not Edward’s biological father
- When considering the beneficiaries of the trust, the surrounding circumstances pointed overwhelmingly in favour of using a wider meaning than 'biological child'.
- A reasonable person in knowledge of the relevant facts would readily conclude that when using the term 'children' Stuart intended the word to be understood as meaning Edward and Jonathan, and not 'Edward and Jonathan provided they are, in fact, my biological sons'.
- There was no reason to consider that Stuart might have intended to treat Edward and Jonathan unequally.
While Edward was not Stuart’s biological child, he was Stuart’s child for the purposes of being a beneficiary of the SN Marcus Settlement.
Useful guides on this topic
Acting for a trust? Start here…
This is an essential guide for advisers and trustees on how to manage the tax affairs of a UK trust and how to avoid common pitfalls.
How to set up a UK trust
What are the tax implications of setting up a trust? What do I need to do as a settlor? What do the trustees need to do?
Rectification of Trustee mistakes
What happens when trustees make mistakes? Can the court rectify them? When will they agree to rectification?
Trust Registration Service
What is the Trust Registration Service? What trusts does it apply to? What are the requirements and deadlines?
UK Trusts
What is a trust? What types of trust are there? How are UK trusts taxed?
Trusts & Tax planning
What is a trust? How can trusts be used in tax planning? What are the advantages and what are the pitfalls?
External link
